As India eyes the bumper initial public offering (IPO) of the state-run insurance behemoth Life Insurance Corporation of India (LIC), Spice Money & Religare Broking join hands for a ‘first-of-its-kind’ long term partnership to simplify Demat Account Opening facility for rural India. Through this association, Religare Broking and Spice Money aim to provide rural citizens with equitable access to investment opportunities.
LIC is seen to create long-term value for investors on the market. This is likely to drive new investors into opening Demat accounts to opt for the IPO.
Nitin Aggarwal, CEO, Religare Broking said, “With the help of Spice Adhikaris, each investor willing to invest in IPOs can seamlessly open a Demat account on Dynami App and make informed decisions for a range of investment products.”
Gurpreet Sidana, COO, Religare Broking said, “Continuing our promise to offer simplified investment journeys & innovative services, this time we are building a large scale phygital DIY facility with Spice Money for opening Sabse Sasta Demat Account.”
There is a fair degree of interest in the LIC IPO from retail investors. B Gopkumar, MD & CEO, Axis Securities said, “We opened around 45,000 accounts for the IPO alone last month. Of these, 40% of customers are new to the market.”
We believe investors should subscribe to the IPO for the long term, as we are confident that the structural story for the life insurance industry remains intact as uncertainties during the pandemic have highlighted the benefits of life insurance, he added.
Varun Sridhar, CEO – of Paytm Money believes that May will be a record month for Demat account openings in recent times. It is a milestone event for Indian Capital markets and is expected to bring millions of new investors.
“More importantly, given the trust that LIC has built with the common man over the decades, a lot of these investors are expected to come from tier 2 & 3 towns,” Varun Sridhar said.
The price band for LIC IPO has been set at ₹902 to ₹949, with a discount of ₹60 for policyholders. For retail and employees, the discount will be of ₹40. LIC’s IPO is set to open from May 4 to May 9. It will open for the anchor tranche on May 2, 2022.