LIC Policyholders may get a discount on IPO

The upcoming IPO of the Life Insurance Corporation may come with a discount for its policyholders as the government is all set to file the draft red herring prospectus (DRHP ) or offer document this week. Department of investment and public asset management (Dipam) secretary Tuhin Kanta Pandey has said that there are certain reservations under the retail window. He also said that there is a policyholder window as well and under the LIC Act provisions up to 10% of the issue can be reserved for employees only.

Discounts can also be offered to small investors as the government intend to encourage the participation of the common man in the proposed IPO of LIC. The advisor expects the size of the issue to be between 5% and 10%. Tuhin Kanta Pandey also said that the government stake will be diluted in LIC through the IPO. He also said that a minimum of 5% is certainly expected.