LIC IPO: 5 things policyholders should know
Premium- LIC IPO: Other than group policyholders, all policyholders are eligible to apply under policyholders’ category provided they fulfil other requirements
LIC IPO: Life Insurance Corporation of India (LIC) has submitted the Draft Red Herring Prospectus (DRHP) at SEBI (Securities and Exchange Board of India). The DRHP informs that through this public issue, Government of India (GoI) plans to sell its 5 per cent stake in the company. 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 retail and policyholder category. However, there are some important details for LIC policyholders that they must know before the LIC subscription opening date and avoid chances of rejection of its application.
Here we list out top 5 LIC IPO details that policyholders must know:
1] Eligibility of LIC policyholders: The LIC of India submitted its DRHP on 13th February 2022. So, those life insurance policyholders who got LIC policy on or before 13th February 2022 will be eligible for applying under the policyholders’ category. Those who have bought LIC policy after 13th February will not be able to get benefit of 10 per cent quota for policyholders.
2] PAN link with LIC policy: Those LIC policyholders who want to claim 10 per cent reserved quota benefit for policyholders, they are advised to check whether their policy is seeded with their PAN or not. In case, their PAN is not linked with their LIC policy, their application will be rejected if they apply under the policyholders' category.
So, LIC policyholders mulling to apply for LIC IPO are advised to check policy PAN link status online at direct LIC link — linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus.
In case, a policyholders PAN is not linked with its LIC policy, he or she can link them online by logging in at the LIC link — linkpan.licindia.in/UIDSeedingWebApp.
However, a policyholder must remember that the last date for PAN policy link is 28th February 2022. LIC policyholders linking their policy with their PAN after this given deadline won't be eligible for claiming 10 per cent quota reserved for policyholders.
3] Rule for joint policy holders: "In case of joint policyholders, both policyholders are insured and hence, both of them can apply separately under the policyholders quota on same policy provided both have separate Demat account," Anuj Gupta, Vice President at IIFL Securities said.
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4] Joint Demat account: "One IPO application can be forwarded from one Demat account. In case of LIC policyholder, who owns a joint Demat account, he or she is advised to check whether it is primary Demat account holder or not. Secondary Demat account holders won't be able to apply for LIC IPO under policyholders’ category," Anuj Gupta of IIFL Securities said.
5] Which policyholders can apply under 10% quota: Other than group policy, all policyholders are eligible to apply under policyholders’ category provided they fulfil other requirements.
Apart from this, NRIs having LIC policy won't be able to apply under quota reserved for policyholders and there will be no lock-in period for allottees, who applied under policyholders’ category.
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