Be ready for the biggest-ever listing of India. Life Insurance Corporation of India (LIC) has filed he draft red herring prospectus (DRHP) with the market regulator for its mega initial public offering on February 13.
Up to 10 per cent of LIC IPO will be reserved for LIC policyholders, according to the draft papers. “The aggregate of reservations for eligible policyholder(s) shall not exceed 10 per cent of the offer size,” the DRHP stated. The policyholders can book IPO at a discounted price. The quantum of discount will be stated later before the opening of LIC IPO.
LIC Policyholders can Apply for Reserved Quota, Here’s How
Those who hold one or more life insurance policies with LIC, will be able to apply under the reserved portion. One can bid up to Rs 2 lakh under LIC IPO policyholders’ quota. You need to update PAN details with life insurance policies by February 28,2022 to be eligible to apply for LIC IPO under reserved quota.
LIC policyholders need two things to apply for upcoming LIC IPO 1) PAN details must be linked with insurance 2) a demat account.
Also Read: LIC IPO: India’s Biggest-Ever IPO is Finally Here, Govt to Offload 5% Stake; Know Details
“In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the Corporation’s records. Further subscribing to any public offering in India is only possible if you have a valid DEMAT account,” LIC had said in an advertisement last year, urging all policyholders to invest in the IPO.
Here is How LIC Policyholders can Link PAN-LIC
1. Go to official LIC website via the link https://licindia.in/ or visit the direct link at https://linkpan.licindia.in/UIDSeedingWebApp/
2. Select the Online PAN Registration option from the home page and then click on Proceed
3. Provide your details, including PAN, LIC policy number, mobile number and email address. You need to be careful during this step and provide all the details correctly
4. Fill in Captcha in the designated box
5. Request an OTP from your registered mobile number
6. Enter the OTP into the portal and then submit it
LIC Policyholders’ Quota: a First-of-its-Kind
LIC enjoys the status of the largest insurance company in India with a market share of 61.6 percent in new business premium collections. It has nearly 29 crore policyholders. This the first time policyholders are getting a quota reserved in a public issue. The central government allowed to amend LIC Act, 1956 to permit the insurer to designate policyholders as one of the reserved categories.
“We have been looking forward to this for the past two years…and whichever month the IPO happens in, I think India will see the largest month in terms of new account openings for capital markets for sure,” Zerodha’s co-founder and CEO Nithin Kamath said.
“We are anticipating the momentum in the opening of new retail broking accounts to get a boost on observing the interest that the LIC IPO is generating. With the government’s decision to reserve 10 per cent of the total issue for policyholders, we are expecting some discount to the issue price for policyholders,” said Arijit Malakar, head of retail equity Research, Ashika Group.
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