LIC IPO: Important news for Prime Minister Jeevan Jyoti Insurance Holders, this advantage won’t be accessible in LIC IPO

  LIC said that group policy holders including Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)  will not get the benefit of policyholders reservation in LIC IPO.

LIC IPO: Life Insurance Corporation of India (LIC) said that in LIC IPO, those arrangement holders of the organization won’t get the advantage of reservation classification, who have taken bunch protection items. LIC explained that the advantage of policyholders’ booking won’t be accessible on bunch protection items including Pradhan Mantri Jeevan Jyoti Bima Yojana.

LIC documented its DRHP with the market controller SEBI on February 13, 2022, in which it has given total insights regarding which approaches are qualified for policyholders reservation and which are not.

  Who will be eligible policyholders

According to LIC’s DRHP, Policyholders who have at least one LIC approaches as on the date of DRHP and the date of opening of Bid/Offer and who are inhabitants of India are qualified to apply for this proposal under Policyholder Reservation Part. will be qualified. Under this, the people who have a non-individual insurance contract are not qualified contract holders.

  What is PMJJBY Policy

Pradhan Mantri Jeevan Jyoti Bima Yojana was sent off in 2015. In this strategy, every one of the bank account holders in the age gathering of 18-50 years will find some kind of purpose for existing front of Rs 2 lakh for one year. This is a sustainable arrangement. It covers passing because of any explanation. Clients need to pay a premium of Rs 330 every year for this.

  LIC policy holders will get these benefits

This administration plot is taken through LIC. According to the draft Red Herring Prospectus (DRHP) gave by LIC last week, the most extreme bid sum under the policyholder reservation segment by a qualified policyholder will not surpass Rs 2,00,000 (net of policyholder rebate).

The complete booking for qualified arrangement holders will not surpass 10% of the all out offer size. LIC gave around 21 million individual approaches in the monetary year 2021. This is around 75% of the complete new individual arrangements. Initial public offering is a proposal available to be purchased (OFS) by the Government of India. LIC isn’t bringing any twist issue of offers.

  Face value will be Rs 10 per share

This public issue of LIC will be the biggest IPO ever for the Indian stock market. The government has 100% stake in LIC or more than 632.49 crore shares. The face value of the shares is Rs 10 per share. Once listed, the market value of LIC will be at par with big companies like Reliance and TCS. LIC IPO is likely to come by March.