LIC IPO: The market is eagerly awaiting the approval of SEBI for the LIC IPO (initial public offering) after the draft red herring prospectus (DRHP) is filed by the Life Insurance Corporation of India (LIC). Of the public offering, 35 per cent will be reserved for retail investors, 10 per cent for policyholders and 5 per cent for LIC employees.
So apart from retail investors, life insurance policyholders and LIC employees are also waiting for the LIC IPO release. However, prior to the LIC IPO release, there is some important information that retail investors, policyholders and LIC employees need to know regarding the highly anticipated public issue.
Here is a list of 10 important LIC IPO details that policyholders, employees and retail investors need to know:
- LIC policyholders are required to have their LIC policy and PAN attached to avail the 10 per cent quota allotted to them. You can find out more about LIC policy and PAN connection by logging in directly to the LIC link at linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus.
- If the policyholder’s LIC policy is not affiliated with the PAN, this must be done before February 28, 2022. You can do this online by logging in to the direct LIC link linkpan.licindia.in/UIDSeedingWebApp.
- Only policyholders who have purchased LIC policies on or before February 13, 2022 can apply under the policyholder quot. The LIC Initial Level Offer, 35% is reserved for retail investors, i.e. those who are not LIC employees or LIC policyholders can apply under this category.
- LIC policyholders and LIC employees can also apply under the retail section.
- A retail investor can invest up to a maximum of ₹ 2 lakh in this LXC IPO.
- LIC policyholder can invest up to a maximum of ₹ 2 lakh in LIC IPO. LIC employees can also invest up to a maximum of ₹ 2 lakh in this IPO.
- LIC policyholders who do not work for LIC can invest a maximum of ₹ 4 lakh (2 lakh under policyholder category, ₹ 2 lakh under retail category).
- The maximum investment that an LIC employee can make in an LIC IPO is 6 lakh. For that he must also have an LIC policy. ( 2 lakh in LIC employee category, ₹ 2 lakh in policyholder category and 2 lakh in retail category).
- In case of a joint demat account, the benefit of the allotment can be claimed only if the LIC policyholder is the primary demat account holder. Therefore, policyholders are recommended to apply under the quota only if they are the primary demat account holder. Otherwise their application will be rejected.
- Being a joint policyholder, if both have separate demat accounts, both can apply under the category of policyholders.