IPO

All You Need to Know About LIC IPO – Policyholder Category4 min read

December 2, 2021
LIC IPO

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All You Need to Know About LIC IPO – Policyholder Category4 min read

LIC IPO is the new talk of the town, all set to go live on 4th May 2022.

In line with that, the government has announced a policyholder category in the LIC IPO. Want to know what the hype is all about? We are here with a simplified explanation for what it is and why it has been making rounds.

Users who have policies with the Life Insurance Corporation now have a reason to be enthused. LIC has announced a separate category for its policyholders in its upcoming IPO. Users who are policyholders of LIC schemes are eligible to apply for the IPO under this category, up to an amount of ₹ 2,00,000. The Government of India has announced that up to 10% of the issue size in LIC IPO will be reserved for Policyholders. A discount on the base price is also expected for this category of investors.

Paytm Money will be supporting the category for LIC IPO. Users of Paytm Money can now apply under the Policyholder category for the IPO. The limit of investment is ₹ 2,00,000. Please note that a user can apply under Policyholder category over and above the normal retail category in LIC IPO. Two separate applications will be considered for the user in such a case.

How will Policyholders benefit from this category?

Policyholders will have the opportunity to invest separately in the said category, over and above retail application. That would increase their chances of getting an allotment in the offering. The process to apply for this category is very seamless with Paytm Money. All you have to do is select the policyholder category and then place your bid. Your application will be considered as part of this category.

 In order to be eligible to apply under the Policyholder Category in LIC IPO, you have to ensure the following:

  Your PAN number has to be updated in the LIC records

  The PAN used for LIC policies has to be the same as that registered with the Demat Account of Paytm Money

Please keep in mind certain things to be ready to apply for the IPO:

  You can go to LIC India’s portal (https://licindia.in/Home/Online-PAN-Registration) to update your PAN, Date of Birth, Policy Number and Email ID. This is to ensure that you are KYC compliant to apply for the IPO under policyholder category.

  You can check whether your PAN is registered with your policy by visiting the site: https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus?

  Alternately, you may reach out to your LIC agent for assistance

Steps to apply under Policyholder Category for LIC IPO, on Paytm Money

  1. Select LIC from the IPO listing
  2. Go to the IPO details page
  3. Select “Policyholder” category and click apply now
  4. Enter bid details and apply
  5. You will receive a mandate from the sponsor bank after the submission
  6. Your application will be successful post your acceptance of the mandate

Why should investors look forward to the IPO?

LIC is the largest life insurer in India with a total first-year premium of over ₹1.84 lakh crore in the year ended March 2021. It commands a market share of over 66%. LIC is the biggest institutional investor in India and has a huge investment portfolio.

It’s employee reach is huge with 2.9 lakh employees, and a network of 22.78 lakh agents. Given the success of earlier PSU IPOs like IRCTC, this comes with enough anticipation of successful listing. With the announcement of policyholder category, this is undoubtedly a happy occasion for the retail investors.

More About the IPO

Issue Amount: 20,557 Crore

Lot Size: 15 shares

Price Band: 902 to 949 (₹ 60 discount for policyholders and 40 for retail investors and employees)

 

Sources – Economic Times, Live Mint, Deccan Chronicle, Indian Express, YourStory 

Disclaimer – This content is purely for informational purposes and is in no way advice or recommendation. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Account would be opened after all the procedures relating to IPV and client due diligence are c ompleted. Source: https://licindia.in/. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete T&C and Disclaimers visit www.paytmmoney.com/stocks/policies/terms#ipo