LIC IPO for Policy holders: All they need to know
LIC name has been lately creating a lot of buzz, this time not among the policyholders, but in the stock market. As we know, the LIC IPO is going to hit the market soon as the company has already filed the draft red herring prospectus with SEBI on 23rd February. Some government sources suggest that the biggest ever IPO in the history of the Indian stock market will launch before 31st March.
As per the filing with SEBI, the government will offer a 5% stake in the company to the investors through the upcoming IPO. The figure roughly translates to a little over 31.6 crores equity shares. The government, which owns a 100% stake in the company, is looking to use the proceeds from the disinvestment for funding infrastructure projects and cover expenses that arose due to the COVID-19 pandemic.
On the other hand, the investor community is also eagerly waiting for the IPO and the retail investors, in particular, want to play on the chance to get a lot and enjoy the anticipated bumper opening. The most surprising fact however is that the government has reserved a maximum of 10% of the LIC shares for its existing policyholders and the same can be offered at discount. If you want to become one of the LIC IPO policy holders, keep on reading the article to find all the relevant details related to LIC IPO policy holder registration.
Key Takeaways for LIC IPO Policy Quota
- The LIC policyholder must link his/her PAN with the LIC policy in order to become eligible for the upcoming LIC IPO
- The policyholder can update his/her PAN details by visiting the LIC official website
- The LIC policy and PAN linking should be done before 28th February
- The LIC policyholder should also have a Demat account in order to subscribe to the LIC IPO
- Not all LIC policyholders are eligible for discounted IPO subscription price
- LIC employees also get a maximum of 5% reservation for the upcoming LIC IPO
Eligibility Criteria for LIC IPO Policyholder Reservation
If you are a LIC policyholder and want to become a part of the LIC IPO policy holder quota, the first and foremost requirement is to link/update your PAN with your policy. Besides, the policyholder should also have a Demat account in order to enjoy the LIC IPO policyholder benefits. Based on the DRHP filed by LIC, the LIC policyholders should update their PAN in their policy before 28th February, failing which they will not be eligible to participate in the upcoming IPO. Hence, if you are not sure whether your PAN is linked with your policy or not, follow the below mentioned steps to check and confirm the same.
Check PAN-LIC Update Status
Step 1: To check LIC IPO policy update, copy and paste the following link in your browser’s address bar and click enter: https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
Step 2: Enter the details asked on the page- LIC Policy Number, Date of Birth of the policyholder, PAN of the policyholder.
Step 3: Enter the captcha carefully and click on the ‘Submit’ button.
Your LIC IPO policy link with PAN status will be shown on the screen.
If you have had your PAN already linked with your LIC policy the only thing you need to ensure is that you should have an active Demat account. On the other hand, if you have not done the LIC IPO policy pan link yet, follow the next section to know the steps to easily update your PAN with your LIC policy.
Update PAN details with LIC Policy
The LIC IPO policy requires you to follow the below mentioned easy and simple steps in order to update PAN details with your LIC policy.
Step 1: Visit LIC’s official website (https://licindia.in/). You can also alternatively paste the following link in your browser to directly land on the LIC-PAN link service page: https://linkpan.licindia.in/UIDSeedingWebApp/
Step 2: Click on the 'Online PAN Registration' menu available on the home page and click on the ‘Proceed’ button.
Step 3: You will be taken to the PAN registration page where you have to enter relevant details such as LIC policy number, PAN, registered mobile number, and e-mail address to proceed further.
Step 4: Enter the captcha carefully and click on the ‘Get OTP’ button.
Step 5: Enter the OTP to complete the registration process.
All done! You have successfully linked your PAN with your LIC policy.
Now, as discussed, LIC policyholders and employees are also eligible for a discount in the upcoming LIC IPO. However, not all policyholders can avail of this discount. As per the information given under the FAQs section in the LIC DRHP, these policyholders are not eligible for the offered discount in the IPO subscription:
- In case you have a joint Demat account with your spouse, you are not eligible to apply for the offer based on that Demat account. You and your spouse cannot make individual applications for the IPO subscription. If you wish to apply for the IPO, you can do so with the first/primary’s name.
- The spouse who is receiving annuities from his/her deceased partner’s LIC policy is not eligible for the LIC IPO subscription under the policyholder reservation quota.
- NRIs are not eligible for the offer.
- Nominees of a LIC policy are not eligible for the LIC IPO policyholder reservation and discount offers.
- LIC policyholders who do not have an active Demat account cannot apply for the offer.
The upcoming LIC IPO is one such great opportunity to make early investments in one of the biggest companies in India. The decision to reserve a maximum of 10% of the offered equity shares for the policyholders is being welcomed by the existing policyholders. If you happen to be a LIC policyholder, make sure you meet all the eligibility requirements in order to enjoy the offered reservation and discount.
- I am not a LIC policyholder. Can I get the reservation and discount offer anyhow?
No, the maximum of 10% reservation and discount offer is not for the LIC policyholders. Hence, you cannot avail the offer anyhow.
- I am not sure whether my PAN details are updated with my LIC policy or not. How can I confirm this?
Visit https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus and enter LIC Policy Number, Date of Birth of the policyholder, and PAN of the policyholder. After entering the captcha, you will get a confirmation message of whether your PAN is linked with your LIC policy account or not.
- When the LIC IPO is going to hit the market?
Although the date is not revealed yet, sources suggest that the LIC IPO will go live before 31st March 2022.
- Can I link my PAN with my LIC policy through a LIC agent?
Yes, you can ask the LIC agent to help you with updating your PAN details in your LIC policy account. Moreover, the LIC-PAN linking process is simple and easy. You can do it by yourself using your smartphone or computer. Visit https://linkpan.licindia.in/UIDSeedingWebApp/ and enter LIC policy number, PAN, registered mobile number, and e-mail address after clicking on 'Online PAN Registration'. Generate and enter the OTP received on your registered mobile number. Once done, you will receive a confirmation message saying that your PAN details have been updated successfully.
- Do I need to have a Demat account to apply for LIC IPO?
Yes, a Demat account is a must to apply not only for the LIC IPO but for any other IPO. It is used to store the shares in a dematerialized form. Furthermore, the LIC policyholders should also have a Demat account in order to apply for LIC IPO and avail the offers exclusively reserved for them.
- Do LIC policyholders have higher chances of getting LIC shares in the upcoming IPO?
LIC has reserved a maximum of 10% shares of the total offered stake for its existing policyholders. Therefore, the LIC policyholders have slightly better chances of getting the LIC IPO subscription. However, the IPO allotment is done purely on a random basis and by following a few protocols.