Investors were eagerly waiting for the IPO of Life Insurance Corporation of India (LIC), which is over now. LIC’s IPO will open for general investors on May 4 and close on May 9. LIC’s mega IPO to open for anchor investors on May 2

According to the rules, a retail investor has to apply for at least one lot in the IPO. LIC’s IPO lot will consist of 15 shares. Talking about the price band, its price has been fixed from Rs 902 to Rs 949. This information has been obtained from sources.

Special discount for LIC policyholders

If you have taken LIC policy i.e. you are LIC policy holder then you will get discount in price along with reservation in IPO. The government is trying to get the policyholder to take an active part in the IPO.

As per the information received, LIC policyholder will get 10% reservation in IPO. Apart from this, the policyholder will get a discount of Rs 60 per share in the IPO. Let us now tell you that if you are an LIC policyholder, then how much money will you have to invest for a lot of IPOs.

Savings Formula on Applying for IPO

The price band of LIC’s IPO is between Rs 902 to Rs 949. If you apply for IPO from policyholder quota then as per the upper price band (949-60 = 889 × 15 = Rs 13,335) i.e. total Rs. 13,335 will have to be invested. The average investor has to invest Rs 14,235 as per the upper price band. In this way, the policyholder will get a total discount of Rs 900 on IPO application of one lot.

On the other hand, retail investors and LIC employees will get a discount of Rs 45 per share on applying for this IPO. That is, according to the upper price band, they will have to pay Rs 13,560 per lot for application. Retail investors and LIC employees will save Rs 675 per lot.

Let us tell you that today an important meeting of LIC Board was held to finalize the IPO of LIC. The issue size of the IPO is Rs 21,000 crore and around 22.14 crore shares will be sold through the IPO.

Valuation Rs. 6 lakh crore

Earlier the government was going to sell 5% stake in the country’s largest life insurance company, but now the government will offer only 3.5% stake in the IPO. LIC has been valued at Rs 6 lakh crore for the IPO.

LIC’s IPO is part of the government’s disinvestment target. The government has set a target of raising Rs 65,000 crore from disinvestment in the financial year 2022-23. Earlier this IPO was to come by 31 March 2022. But its date was postponed due to the changed global situation due to the Russo-Ukraine War.