{"id":22894,"date":"2022-02-21T16:33:32","date_gmt":"2022-02-21T11:03:32","guid":{"rendered":"https:\/\/www.fundsindia.com\/blog\/?p=22894"},"modified":"2023-02-08T09:31:06","modified_gmt":"2023-02-08T04:01:06","slug":"points-a-lic-policyholder-should-know-about-the-lic-ipo","status":"publish","type":"post","link":"https:\/\/www.fundsindia.com\/blog\/ipo\/points-a-lic-policyholder-should-know-about-the-lic-ipo\/22894","title":{"rendered":"Points a LIC Policyholder should know about the LIC IPO"},"content":{"rendered":"\n
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People of India are expecting the IPO of India’s Biggest Life Insurance Player- Life Insurance Corporation of India(LIC). It filed the Draft Red Herring Prospectus(DRHP) with SEBI on February 13, 2022. Now, let us walk through a few updates on this much-awaited IPO.<\/p>\n\n\n\n

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LIC Policy to be linked with PAN:<\/strong><\/span> <\/h5>\n\n\n\n

The policyholders must link their policies with their PAN card on or before February 28, 2022. <\/p>\n\n\n\n

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Application Limit:<\/strong><\/h5>\n\n\n\n

The total allocation value to a policyholder cannot exceed the limit of Rs. 2,00,000 after the discount. <\/p>\n\n\n\n

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The Offer:<\/strong><\/h5>\n\n\n\n

The offer provided consists of a net offer, employee reservation, and policyholder reservation. <\/p>\n\n\n\n

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NRI investors<\/a>:<\/strong><\/h5>\n\n\n\n

NRIs(Non-Resident Indians) can invest in this IPO but they can apply only under the retail category. They will not be eligible to apply under the policyholder category even if they hold LIC policies.  <\/strong><\/p>\n\n\n\n

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Minor Policy:<\/strong><\/h5>\n\n\n\n

In the case of policies in the name of a minor, the proposer of the policy can apply under the policyholder category. <\/p>\n\n\n\n

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Employee Category:<\/strong><\/h5>\n\n\n\n

LIC provides an opportunity for its employees to apply for the IPO under the employee category. If the employee has a policy, then he or she can also apply under the policyholder category but he or she cannot bid under the non-institutional portion.<\/p>\n\n\n\n

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Multiple Bids:<\/strong><\/h5>\n\n\n\n

If an individual applies under all the categories (Policyholder, employee, retail & non-institutional) then only the employee and policyholder category applications will be considered and the other two categories will be rejected as multiple bids. <\/p>\n\n\n\n

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Joint Policyholders:<\/strong><\/h5>\n\n\n\n

If two people share a LIC policy(joint), only one among them can apply for the IPO under the policyholder category. The individual applying for the IPO must link his or her PAN with the policy. Also, if they have a joint Demat account, the individual applying needs to be the primary holder of the Demat account. <\/p>\n\n\n\n

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Lock-in period:<\/strong><\/h5>\n\n\n\n

There is no lock-in period for the IPO which means the individuals can sell their shares immediately on the listing if they wish. <\/p>\n\n\n\n

What are the eligibility criteria for the policyholder category?<\/span><\/strong><\/h3>\n\n\n\n