LIC IPO update: Can lapsed policy holders apply for the IPO? Know here

New Delhi: Life Insurance Corporation (LIC) last week filed draft papers with capital market regulator Sebi for the sale of 5 per cent stake by the government for an estimated Rs 63,000 crore.

"The DRHP of LIC IPO has been filed today with the SEBI. For filing valuation about 31.6 crore shares are on offer representing 5 per cent equity," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey tweeted.

The IPO is 100% OFS by GOI and no fresh issue of shares by LIC

For filing valuation about 31.6 cr shares are on offer representing 5% equity. pic.twitter.com/UizbeiPloD — Secretary, DIPAM (@SecyDIPAM) February 13, 2022

Can lapsed policy holders apply for the upcoming LIC IPO?

“All policies which have not exited our records by way of maturity, surrender or by way of death of the policyholder are eligible for reservation under the Policyholder Reservation Portion,” says the draft red herring prospectus of LIC.

Touted to be the country's biggest ever public offering, the IPO of over 31.6 crore shares or 5 per cent government stake is likely to hit the D-street in March and employees and policy holders of the insurance behemoth would get a discount over the floor price.

The LIC IPO would be the biggest IPO in the history of Indian stock market and once listed LIC's market valuation would be comparable to top companies like RIL and TCS.