LIC IPO: Retail investors, policyholder should get SIGNIFICANT allotment, DISCOUNT, Anil Singhvi strongly urges govt
LIC IPO - In the SEBI meeting held on Wednesday, there has been some relaxation for the large Initial Public Offerings (IPO). How should the new rules or the change of strategy be seen and what impact will it have on the investors? Zee Business Managing Editor Anil Singhvi gives his take on this! this has come in the wake of the news surrounding the LIC IPO that is forthcoming, but whose launch date has not been revealed yet
LIC IPO - In the Securities and Exchange Board of India (SEBI) meeting held on Wednesday, there has been some relaxation for the large Initial Public Offerings (IPO). How should the new rules or the change of strategy be seen and what impact will it have on the investors? Zee Business Managing Editor Anil Singhvi gives his take on this! this has come in the wake of the news surrounding the LIC IPO that is forthcoming, but whose launch date has not been revealed yet.
Significantly, the Market Guru said that the changes may well have been done keeping in mind the LIC IPO. This is not to say that only LIC IPO will be benefitted, he said adding that more companies will be benefitted, going forward.
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Under the new rules, the companies will get a time of 5 years to bring the promoter holding to 75 per cent instead of 3 years. This means that extra time will now be given.
Another thing is that if the IPO size is over Rs 10000 cr or the market cap of the company is over Rs 1 lakh cr then an IPO of 5 per cent can also be brought now, he said.
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The Market Guru is of the view that the investors should not even have a second thought on the LIC IPO. There are a few things that the government can do, and which will be very good. He said that that the retail investors and policyholders should be given significant allotment. There should be no restriction on retail quota, he opined.
LIC customers should be given special preference as the LIC is what it is today only because of its customers. Even the retail investors should be able to get a share of wealth generated by the Indian companies.
Giving example of Russia, the Managing Editor said that the government of the day had allotted 100 per cent shares to the retail investors at the time of IPO of government companies.
He further said that the retail investors and policy holders should get a special discount which will not only act as a trigger for this IPO but also bring them towards capital markets.
This IPO could be a gamechanger in increasing people’s interest towards the markets, he opined.
LIC is a household name and the entire country trusts it.
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