Pradhan Mantri Jeevan Jyoti Bima Yojana holders are also eligible to avail LIC IPO’s benefits
New Delhi:
Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) subscribers are also eligible to avail the quota benefits reserved for the Life Insurance Corporation (LIC) policyholders, the insurance behemoth’s chairman M R Kumar said on Monday.
As per the draft red herring prospectus submitted by LIC with the markets regulator SEBI recently, 10 per cent of the total LIC share offer will be kept reserved for the LIC policyholders. There are also speculations about discounts. However, the LIC has not yet announced any plan for offering discounts to the policyholders in the proposed initial public offer (IPO).
“I want to clarify that the policyholders of PMJJBY are also eligible to apply in our IPO as the scheme is offered by LIC,” Mr Kumar said in a virtual interaction with media persons.
The PMJJBY is an insurance scheme launched by the prime minister for people in the age group of 18 to 50 years. Risk coverage under this scheme is for Rs 2 lakh in case of death of the insured, due to any reason. The premium is Rs 330 per annum. The scheme is being offered by the Life Insurance Corporation of India and all other life insurers who are willing to offer the product on similar terms with necessary approvals and tie-up with banks for this purpose.
Mr Kumar said the IPO will be in the market during the current fiscal and listing is also expected by March-end.
“Valuation is currently going on and right now we can’t predict how much money LIC will get by diluting its 5 per cent stake,” he said.
LIC’s IPO is expected to obtain regulatory approval by the first week of March after which an indicative marketing price band will be set, the LIC chairman said.
Mr Kumar said LIC is well-capitalised and does not require any fresh capital infusion. “Going forward, if there is any growth capital requirement, we will approach not only the govt but all the shareholders,” he said.
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