Link investor

LIC IPO PAN LINK DEMAT ACCOUNT OPENING PROCESS FOR INSURED

The Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC) is about to hit the market. While the government did not disclose in the draft Red Herring Prospectus (DRHP) the discount that will be granted to policyholders or LIC employees under the public offering. In accordance with the standards, up to 5% of the issue size can be reserved for employees and up to 10% for policyholders.

To qualify for reserved shares, policyholders must update their permanent account number (PAN) details on the LIC portal and have demat accounts.

LIC PAN LINK

The DRHP for LIC’s IPO shows that if a policyholder does not update PAN details on the LIC portal by February 28, they will not be eligible to benefit from the reserved shares of the country’s largest insurer.

“A policyholder from our company should ensure that their PAN details are updated on our company’s policy records at the earliest. A policyholder who has not updated their PAN details from our company before the expiration of two weeks from the date of filing of such draft Red Herring Prospectus with SEBI (i.e. before February 28, 2022) will not be considered a eligible policyholder,” according to the DRHP for LIC’s IPO.

READ ALSO | LIC IPO: Combine PAN with a life insurance policy for big benefits; step by step details

DEMAT ACCOUNT

The market regulator Securities and Exchange Board of India (Sebi) is reviewing the draft IPO documents of LIC and will give its approval if everything mentioned in the DRHP is correct. Subsequently, the subscription process for the IPO of LIC will begin and there will also be a process for allocating shares.

Policyholders wishing to participate in the LIC IPO underwriting process must have a demat account.

The Demat account or dematerialization account is essential for anyone interested in investing in stocks.

READ ALSO | LIC IPO: You need a demat account to participate; How to open it

LIC IPO DETAILS

LIC’s IPO is a 100% government bid and no new share issues have been offered by LIC. LIC holds 66% market share in new business premiums with 283 million policies and 1.35 million agents as of March 31, 2021. The intrinsic value of LIC as of September 30, 2021 is Rs 5,39,686 crore ( around INR 5.4 trillion), the DIPAM secretary tweeted.

READ ALSO | LIC IPO Guide for Policyholders: Price Range, Size, Discounts, Must-Dos