The government has a disinvestment target (paisa banao target) of about 65,000 crore this year.
With this IPO, it will give a chhotu sa 3.5% stake (22.13 crore shares) to the public, thus changing its stake to 96.5% post IPO.
If you or your parents hold an LIC policy, it is advantageous to apply for the IPO since there is a special 10% reservation for policy holders.
If you are an LIC employee (or know someone who works in LIC), ask them to apply too. They get a separate 0.7% quota in the IPO.
LIC has fixed a price range of Rs 902 to 949 per share.
How much will you have to spend?
Considering you pay Rs 949 per share, the minimum amount you will need to apply for LIC IPO is Rs 14,235 (Rs 949 x 15) whereas the maximum investment limit is capped at about Rs 1,99,290 [( Rs 949 x 15) x 14].
Is there any discount?
Yes. LIC policy holders get a discount of Rs 60 per share, and LIC employees get a Rs 45 discount per share.
Is there any Advantages?
– As LIC is a top company in the insurance industry, it will give a chance to the individual investors to build a corpus with LIC– With LIC IPO, the operations and governance will become more transparent– LIC IPO launch will attract many retail investors and foreign investors as well
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