Now after the amendment, two types of funds have been created. Policyholders are participating in one. The surplus coming in the second fund will be completely given to the shareholders i.e. Government of India.
To get LIC shares, link PAN with policy by February 28.
Country’s largest insurance company Life Insurance Corporation of India The IPO is about to come next month. LIC IPO ,LIC IPO, Draft paper has been submitted to SEBI for LIC has given an important information in the draft paper to be filed in SEBI. According to the draft paper, LIC policyholders may get lower returns in future due to change in the distribution of surplus. Let us tell you that LIC’s IPO is likely to come by 31 March. This is going to be the biggest IPO of the country.
LIC said that before the amendment in Section 24 of the LIC Act, the company used to have a consolidated ‘Life Fund’. The surplus in the Life Fund was divided between the policyholders and the shareholders/Government of India.
The amount will come down in the share of policyholders
Now after the amendment, two types of funds have been created. Policyholders are participating in one. The surplus coming in the second fund will be completely given to the shareholders i.e. Government of India, but the share of the former fund will now be divided in the ratio of 90 and 10. In this way, now less amount will come in the share of policyholders.
Road show for the participation of foreign investors
LIC started roadshow to woo global investors. LIC is seeking his participation in the country’s largest ever public issue through this formal roadshow.
The government is selling 5 per cent stake in LIC through IPO. Under LIC’s IPO, 316 crore shares will be offered, which is equivalent to 5 per cent stake.
LIC’s IPO is an ‘Offer for Sale’ or OFS of the Government of India. LIC does not have any share in this as the government has 100 per cent stake in the company. Under this, 632.49 crore shares come. The face value of the share is Rs 10.
Do this work by February 28
LIC has reserved quota for its policyholders in the IPO. But the necessary condition is to update the PAN. If you are not able to update PAN by February 28, then you will not be able to apply for IPO. It is necessary to update PAN within two weeks from the date of submission of draft paper to SEBI.
This information has been given in the Draft Red Herring Prospectus (DRHP) submitted to SEBI. Along with the PAN update, the policyholder will have to open a demat account. If you already have a demat account then there is no need to open a new one. If the demat account is in joint, then the primary member will be given preference in the IPO.