LIC IPO / 10% share for policy holders, get complete information from company value to issue size here

Preparations are in full swing to present the country's largest insurance company LIC's IPO in March. For this, documents have also been submitted to the market regulator SEBI. On Sunday 13 February, the government has filed DRHP for the issue with SEBI. The report quoted merchant banking sources as saying that the government is expecting to raise Rs 63,000 crore (about $8 billion) from the IPO.

Policy holders-employees' share reserve

It is worth noting that the IPO has exposed the fact that the share has been reserved for LIC policy holders and employees of the company. Also, the issue of LIC will be given to both at a discount. According to the report, as per the draft document submitted to SEBI, 10 per cent of the issue has been earmarked for policy holders. Even if your LIC policy has lapsed, you can still bid against the reserve quota. Apart from this, 5 per cent share will be reserved for LIC employees.

Totally Offer for Sale IPO

This IPO of LIC will be the biggest IPO till date. As per the DRAP submitted to SEBI, the issue of LIC will be purely offer for sale. In this, the government will issue 31.6 crore shares under its 5 per cent stake. According to the report, according to this the embedded value of the company will be Rs 5.4 lakh crore. Normally the market cap of an insurance company is four times this value. According to this, the market value of LIC will be $ 288 billion i.e. about Rs 22 lakh crore and LIC will become the largest valued company of the country.

LIC will overtake Reliance

Let us tell you that at present the country's most valuable company is Mukesh Ambani-led Reliance Industries. Its market cap is Rs 16 lakh crore. Let us inform you that in computing the embedded value, the current net asset value of the insurance companies is also included in the present value of future profits. This method is used to calculate the value of insurance companies all over the world. In such a situation, LIC can emerge as a more valuable company than Reliance Industries.

These companies raised the maximum amount

Let us tell you about LIC IPO, the government is planning to raise 63 thousand crore rupees through this. That is, this IPO will be the biggest compared to the IPO introduced in the history of the stock market so far. Earlier in 2021, the amount raised from Paytm's IPO was Rs 18,300 crore, which was the highest ever. Before Paytm, in 2010, Coal India had raised about Rs 15,500 crore from the market, while Reliance Power raised Rs 11,700 crore in 2008.

Attention to Invest in IPO

If you are planning to invest in LIC IPO, then it is necessary for you to know some important things first. To invest in LIC IPO, first you need to have a PAN and Demat account linked to your LIC policy account. That is, you need to settle both of these tasks as soon as possible.

Update PAN details in 10 steps

1. Visit the official website of LIC.
2.  Select the option 'Online PAN Registration' on the homepage.
3.  Now click on 'Proceed' on the registration page.
4.  On the new page, enter PAN, email, mobile number and policy number.
5.  After that enter the captcha code correctly.
6.  Now click on OTP request.
7.  OTP will come on your registered mobile number.
8.  Now enter the OTP at the designated place and submit.
9.  After this you will get the message of successful registration.
10.  Then check the status by date of birth, policy-PAN number.