The much-awaited IPO of the state-run insurance behemoth, Life Insurance Corporation, is set to open on May 4 and close on May 9, sources said. In the IPO, staff and policyholders will be receiving a discount. According to the LIC DRHP filed with Sebi, up to 10 per cent will be reserved for eligible LIC policyholders under the policyholder reservation portion. LIC is likely to make a formal announcement on LIC IPO today as it has invited the media for a press conference at 12:30 pm.
Here are things that policyholders who are looking to invest in the LIC IPO via Policyholder Reservation Portion should know.
LIC IPO: Price Band and Discount
The price band for the LIC IPO is set at Rs 902 to Rs 949, with a discount of Rs 60 for policyholders, CNBC TV18 learnt from government sources on April 26. For retail and employees, the discount will be Rs 40, the persons privy to the development told the news channel.
LIC IPO: Demat Account Mandatory
If you are an LIC policyholder interested in participating in the insurer’s anticipated initial public offering (IPO), you must ensure that your PAN information is current in LIC’s systems and that you have a demat account.
According to the LIC DRHP filed with SEBI, a policyholder who does not update his/her PAN before February 28, 2022 will not be eligible to participate in its IPO under the portion reserved for policyholders. According to the LIC DRPH, “A policyholder of our Corporation shall ensure that his / her PAN details are updated in the policy records of our Corporation at the earliest. A policyholder who has not updated his / her PAN details with our Corporation before expiry of two weeks from the date of the filing of this Draft Red Herring Prospectus with SEBI (i.e., by February 28, 2022) shall not be considered as an Eligible Policyholder.”
Are Policyholders With Lapsed Policies Eligible For Discount?
Through the policyholder Reservation Portion, policyholders with lapsed LIC policies can apply for shares in the LIC’s initial public offering (IPO). All policies that have not exited LIC records due to maturity, surrender, or the policyholder’s death are eligible for reservation under the Policyholder Reservation.
LIC IPO: Policyholders With Joint Accounts
Meanwhile, LIC policyholders with joint accounts can participate in the upcoming IPO. However, only one of the two policyholders will be allowed to apply for shares under the Policyholder Reservation Portion.
LIC IPO: NRI Policyholders
NRIs cannot apply for the IPO via the Policyholder Reservation Portion. Only a person residing in India during the bid or offer period is eligible for applying in the offer.
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