Pradhan Mantri Jeevan Jyoti Bima Yojana Holders Eligible for LIC IPO at Low cost; Know Particulars


Life Insurance coverage Company (LIC) chairman, MR Kumar has knowledgeable that the subscribers of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are eligible for LIC preliminary public providing at a reduction. “PMJJBY is a part of that and reservation will probably be there (for the policyholders),” Kumar mentioned in an interplay with the media.

As per the draft crimson herring prospectus submitted by LIC with the markets regulator SEBI not too long ago, 10 per cent of the whole LIC share supply will probably be stored reserved for the LIC policyholders. There are additionally speculations about reductions. Nonetheless, the LIC has not but introduced any plan for providing reductions to the policyholders within the proposed preliminary public supply (IPO).


The PMJJBY is an insurance coverage scheme launched by the prime minister for folks within the age group of 18 to 50 years. Launched in 2015, PMJJBY presents a renewable one 12 months life cowl of Rs 2 lakh to all financial savings checking account holders, masking loss of life as a consequence of any cause, for a premium of Rs 330 each year per subscriber. This authorities scheme is obtainable or administered by way of LIC. As per the Draft Purple Herring Prospectus (DRHP) filed final week, the utmost bid quantity underneath the Policyholder Reservation Portion by an eligible policyholder wouldn’t exceed Rs 2,00,000 (internet of policyholder low cost).

LIC IPO: How one can Apply?

LIC policyholders having a number of insurance policies as on the date of the DRHP and bid/supply opening date and are residents of India could be eligible to use underneath the ‘policyholder reservation portion’ class. They must make sure that PAN particulars are up to date within the coverage information of the corporate by February 28. A policyholder can apply solely from his personal demat account. In actual fact, NRI policyholders or different policyholders residing outdoors India can’t apply for this supply on this class.


The state-run life insurer might not promote its complete stake in IDBI Bank and may use its giant community of branches to market its insurance coverage providers, Kumar additional mentioned. Its majority stake in IDBI Financial institution, which it rescued in 2019, is seen as a threat to its stability sheet.

“I wish to have some stake in IDBI Financial institution. It has been the strongest contributor to the bancassurance channel for us. This can assist us to develop that a part of the channel,” mentioned Kumar in a press convention with reporters on Monday.

India’s authorities and LIC maintain over 90 per cent stake in IDBI Financial institution, which had belongings of over 2,900 billion rupees ($38.91 billion) on the finish of December and over 1,800 branches throughout the nation. LIC took over the lender when it was weighed down by dangerous loans and wanted a brand new infusion of capital.

LIC issued roughly 21 million particular person insurance policies in FY 2021, accounting for practically 75 per cent of recent particular person coverage issuances. The IPO is supply on the market (OFS) by Authorities of India. There isn’t a recent difficulty of shares by LIC.

The federal government holds 100 per cent stake or over 632.49 crore shares in LIC. The face worth of shares is Rs 10 apiece. The LIC public difficulty could be the largest IPO within the historical past of the Indian inventory market.

Learn all of the Latest News, Breaking News and Assembly Elections Live Updates right here.

Source link

HostGator Web Hosting


Please enter your comment!
Please enter your name here