New Delhi: The government on Wednesday announced that the country’s biggest IPO – LIC IPO – will launch next week on May 4. The issue will close on May 9, Monday. In the initial public offering of the Life Insurance Corporation of India, employees and policyholders will be get a discount of Rs 45 and Rs 60 respectively.
According to the DRHP filed with Sebi, LIC will reserve up to 10 per cent for its LIC policyholders under the Policyholder Reservation Portion. So, here 5 things that LIC policyholders must know before investing in the mega IPO.
NRI LIC policyholders
Under the Policyholder Reservation Portion, LIC has put aside up to 10 per cent of the shares sold in its IPO for its policyholders. However, NRI policyholders and others who do not reside in India will not eligible to apply for the Policyholder Reservation Portion. Only resident Indians can apply.
Demat account mandatory
To invest in the LIC IPO, the policyholder must ensure that their PAN information is updated in LIC’s systems and they 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.
LIC policyholder with lapsed policy
A policyholder whose LIC policies have been lapsed can still apply for the IPO through the policyholder Reservation Portion. All policies that have not exited LIC records due to maturity, surrender, or the policyholder’s death are eligible.
Joint LIC policyholders
Under the Policyholder Reservation Portion category, only one of the two can apply for Equity Shares. The PAN of the bidder must be amended in the insurance records. Also, the applicant must have a demat account in their own name, and in case of a joint account, the applicant must be the first/primary account holder.
LIC policyholder under group policy
All policies other than group policies qualify for Bidding in the Policyholder Reservation Portion.
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