The Securities Exchange Board of India (SEBI) has given a green signal to the state-owned insurance behemoth LIC’s (Life Insurance Corporation of India) Draft Red Herring Prospectus (DRHP). The market regulator, which approved LIC’s DRHP in less than 22 days, has issued letter of final observation for LIC DRHP. As per norms, Sebi usually takes at least 21 days to approve a DRHP.
LIC had unclaimed funds to the tune of Rs 21,539 crore as of September 2021, according to draft prospectus filed for IPO with market regulator Sebi. This includes interest earned over the outstanding unclaimed amount.
As per the Draft Red Herring Prospectus (DRHP) filed by the Life Insurance Corporation of India (LIC), the unclaimed amount was at Rs 18,495 crore at the end of March 2021 and Rs 16,052.65 crore at the end of March 2020, news agency PTI had reported
The total unclaimed amount stood at Rs 13,843.70 crore at the end of March 2019.
Earlier, the LIC has set aside around one-tenth of the total shares for its policyholders to encourage retail investments. The recent data shows that the insurance behemoth has around 29 crore policyholders and harnesses a 74.6% market share in individual policies.
With a new category, ‘Policyholder Reservation Portion’, people who’ve had long associations with the company as policyholders will have access to an additional piece of the pie in the IPO.
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Having a myriad of policies since the last 65 years, the eligibility for this special policyholder category varies.
(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)
