Life Insurance Corporation (Photo | EPS)
BENGALURU: Policyholders interested in investing in the Initial Public Offer (IPO) of the Life Insurance Corporation (LIC) should update their PAN details in the policy records by 28 February 2022. The policyholders can do so by visiting the insurer’s online PAN registration page.
In order to help its existing 28.26 crore policyholders reap the benefits of its mega IPO issue, the government-owned life insurer has reserved nearly 10% of the offer size for policyholders.
Those having one or more policies as on Feb 13, 2022, would be eligible to apply in this offer and avail of the discount. According to LIC’s draft red herring prospectus (DRHP), over 3.16 crore shares are on offer. Also, it offers a separate reservation for its employees under the Employee Reservation Portion that will not exceed 5% of its post-offer equity share capital.
“With policyholders’ quota, we are also expecting a discount which will boost the return on investment,” says retail broking house Angel One. As per the draft papers, non-resident Indians (NRIs) are eligible to invest in IPOs, and this category will not be eligible under the ‘Policyholder Reservation Portion’.
Also, staff bidding in the Employee Reservation Portion can bid through the ASBA (Application Supported by Blocked Amount) and the UPI mechanism, and eligible employees can sell the equity if they choose to do so, said the draft papers. Retired LIC employees cannot do so under the ‘Employee Reservation Portion. Existing employees having a demat account in his/her name can also apply.
