In the 2020 budget, the Indian government announced the launch of the LIC IPO. The DRHP for the LIC IPO was submitted on February 13th. In the IPO, the government issues 31.62 crore shares or 5% of its equity. This IPO intends to increase the firm’s operational rigour and transparency while also allowing retail investors to invest in the company. An IPO does not imply that LICs are privatized because privatization and listing are two distinct processes. However, the government intends to sell a portion of its interest through this IPO.
The Life Insurance Corporation (LIC), created in 1888, has over 29 crore policyholders. It has a quotation for them on its page. If their insurance is connected to their PAN card, policyholders can apply for the LIC IPO.
Benefits of the LIC IPO
- Long-term investors will find the LIC IPO to be an appealing investment option.
- The LIC IPO offers an excellent chance for individual investors and employees to invest in the company for the long term and benefit on the first day of trade.
- An additional benefit for LIC policyholders is a 10% reservation in the LIC IPO.
- The LIC IPO is unlike any other IPO in terms of value. Consequently, the IPO value is strong compared to its competitors in terms of predicted price.
- The LIC IPO will strengthen investor confidence and increase the number of Demat accounts opened.
How to Apply for the IPO?
If you are a policyholder, you must have two things to apply for the LIC IPO.
A PAN Card Linked to Your LIC Policy Account
Policyholders should verify that their PAN data are up to current in the corporation’s records before applying for LIC IPO since your PAN card detail is a must if you apply for LIC IPO. Furthermore, your PAN card information is necessary when you trade on the stock exchange. You should also make certain that your PAN number is connected to your LIC insurance.
Through Demat Account
To buy stocks, you must have a Demat account, whether a policyholder or a regular investor. Any stockbroker can set up a Demat account for you. You should also ensure that your KYC information is up to current. Creating a Demat account on the IIFL Securities website is simple and needs little documentation.
If you are looking for the best low price shares to buy today, you can visit the IIFL securities website and get all the information about the best low price shares.
You can also apply for the IPO through the IIFL online trading app. You may easily invest in the LIC IPO using the IIFL mobile trading app once the LIC IPO date and other details are released. To invest in the LIC share IPO, follow these steps:
- Open the app and navigate the IPO area on the left-hand side menu.
- You’ll find a list of current and planned IPOs. Choose an IPO from the LIC.
- To proceed, click here.
- Enter the bid information.
- Enter your UPI ID here. Check that the ID is exclusively linked to your bank account and click. Submit
- Check the specifics and confirm
- You will get notified after you have done so. Otherwise, go to the Mandate section of your UPI app.
- Accept the UPI app’s mandate request.
- You have now successfully applied for the LIC IPO.
- The IIFL Mobile Trader app allows you to follow the status of your application in real-time.
Why Should You Subscribe to the LIC IPO?
IIFL Securities have provided many reasons for investors to apply for the LIC IPO, including the company’s history and the largest market share in the country, which stands at 66.28 per cent as of FY 2020-21. Furthermore, because LIC is a serious concern, the possibilities of allotment are larger.
The life insurance market is rising at 22.5 per cent per year, resulting in a larger return on investment. The LIC IPO also allows for significant growth in the number of Demat accounts in India. Assume that all of these Demat policyholders are LIC policyholders. After that, the LIC will have around 24 crore policyholders who do not have a Demat account. As a result, the prospect of new clients is quite significant.
Since there a lot of anticipation about the LIC IPO, the IPO specifics have not release. However, the government decided wisely by stating that current policyholders would be given priority treatment. After all, it’s LIC, and everyone would profit from it.