Here is what LIC policyholder can do to apply for discounted shares
Here is what LIC policyholder can do to apply for discounted shares

Here is what LIC policyholder can do to apply for discounted shares

Finally the much awaited upcoming IPO, Life Insurance Corporation (LIC) of India is finally here. The Initial Public Offering of the country’s largest life insurer is all set to open up for subscription on May 04, 2022. After remaining open for almost 6 days, the issue will come to a close on May 09, 2022. 

The government of India has decided to give LIC policyholders a special incentive in the form of a discount on the issue price to promote retail subscription. If you’re an LIC policyholder, here’s some key information that you need to know.  

Highlights of the LIC IPO

Through this issue, the government of India is looking to offload around 3.5% of its total stake by selling around 22.13 crores of equity shares. This move is likely to net the government of India around Rs. 21,000 crores. 

The minimum share lot that investors can apply for is set at 15 shares. In the entire issue size of 22.13 crores of equity shares, 2.21 crores of shares have been reserved especially for LIC policyholders, whereas around 15.81 lakhs of shares have been reserved solely for employees working with LIC. 

Out of the total price band of Rs. 902 to Rs. 949 per share, retail investors are being provided with a special discount of Rs. 45 per share. On the other hand, LIC policyholders are being provided with a massive discount of Rs. 60 per share. 

What should LIC policyholders do to apply for these discounted shares?

Now, firstly to be eligible to apply for these discounted shares, LIC policyholders must have linked their PAN with their LIC policy. Only those individuals who have already linked it are eligible to apply. The last date for linking PAN with the LIC policy was February 28, 2022, which has now expired. So, unless policyholders have linked their PAN with their policy before this date, they won’t be eligible to apply. 

If you’re unsure of whether you’ve linked your PAN with your LIC policy, you can quickly check the status by visiting this link - https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus

Once you’ve ascertained that your PAN is linked with your LIC policy, the next step that you would need to do is open a demat account. However, if you already have one, then you can simply use that to apply for the shares through your trading portal. 

Conclusion 

As long as both the prerequisites of PAN linking and the possession of a demat account are satisfied, any LIC policyholder may apply for the IPO through either their trading portal or by submitting a duly filled LIC IPO application form.

That said, if you’re an LIC policyholder who hasn’t yet opened a demat account, visit the website of Motilal Oswal right away to open a demat account online for free within minutes. 

 

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