LIC IPO: PMJJBY policyholders eligible for discounted shares, says chairman M R Kumar
PremiumLIC IPO: ‘PMJJBY is part of that and reservation will be there (for the policyholders),’ said Chairman of insurance company M R Kumar
New Delhi: Subscribers of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are eligible for LIC initial public offering (IPO) at a discount. "PMJJBY is part of that and reservation will be there (for the policyholders)," Chairman of insurance company M R Kumar said in an interaction with the media, news agency PTI reported.
As per the Draft Red Herring Prospectus (DRHP) filed last week, the maximum bid amount under the Policyholder Reservation Portion by an eligible policyholder would not exceed ₹2,00,000 (net of policyholder discount).
It further said policyholders having one or more policies of LIC as on the date of DRHP and bid/offer opening date and who are residents of India would be eligible to apply in this offer, under the Policyholder Reservation Portion.
The DRHP further clears that 35 per cent of the public offer will be reserved for retail investors, 5 per cent will be reserved for LIC employees whereas 10 per cent of the public issue will remain reserved for its policyholders. So, a LIC policyholder will be able to apply in both the retail as well as policyholder category.
Those LIC policyholders who want to avail this opportunity should ensure their policy is linked with their PAN. The insurer has asked to do the same by February 28. In case, a policyholder fail to do so or not his/her application will be rejected if they apply under the policyholders' category.
The IPO of LIC is expected by March. Once listed, LIC's market valuation would be comparable to top companies like RIL and TCS.
Pradhan Mantri Jeevan Jyoti Bima Yojana(PMJJBY)
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 ₹2 lakh in case of death of the insured, due to any reason. The premium is ₹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. This government scheme is offered or administered through LIC.
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