The IPO season is in full swing with multiple IPOs in the line to make their debut at the stock market. From January 2021 till 15th December 2021, more than 50 IPOs have been listed on the stock exchange. As the last quarter of the financial year 2021-22 is about to end, one other IPO is eagerly awaited by the investors – the LIC IPO.
LIC IPO DRHP was filed on February 23. The IPO is opening for subscription between May 4 and 9. The LIC IPO price band is Rs 902 to 949 per share and the lot size is 15 shares.
If you are, you would need two things to apply for the LIC IPO as a policyholder when the IPO launches in the market –
LIC has been chasing policyholders for linking their PAN with their policies as part of basic KYC compliance. Using the IPO as an opportunity, LIC released an advertisement stating, “In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the Corporation’s records.“
Therefore, your PAN card details are a must if you want to subscribe to the LIC IPO. PAN card details are sought as such when you trade on the stock exchange. Here, you would also have to ensure that your PAN number is linked with your LIC policy.
Since buying stocks is possible only through a Demat account, you would need one in your name. You can open a Demat account with any full-service or discount stockbroker. You have to make an application for the Demat account and submit your basic KYC documents like your identity proof, age proof, bank details, signature proof, etc. and pay the fee (if any) for opening the account. The process for opening a Demat account on Groww is very easy and requires minimum documentation.
Linking your PAN card with your LIC policy is non-negotiable as the company has made it a qualifying criterion for existing policyholders to apply for its IPO under the policyholder category that gives certain benefits. Thanks to the online mode, you can now link your PAN card to your LIC policy account in a few steps within minutes.
Here’s how the process of linking your PAN card with your LIC policy works–
and your LIC policy account would be linked.
Also Read, Things to know before investing in LIC IPO
To ensure that your application for the LIC IPO is valid and accepted, make sure that your KYC details mentioned in your LIC Policy are updated.
If your address, contact number, or email address has been changed from what is currently mentioned on your LIC policy, you will have to update it before you apply for the IPO. This is also why LIC has been running campaigns, urging policyholders to update their KYC details.
Here’s how you can update your details in your LIC policy:
If you think that you had linked your PAN Card number with your LIC policy earlier, you can check the status of the link to ensure everything is in place before you apply for the IPO when it launches. Moreover, after you follow the aforementioned process and link your PAN Card, you can check the linking status online through the LIC website.
Here’s a brief description of how the process works-
You can also get in touch with your LIC agents and ask them to help you link your PAN card with your LIC policy. The process is, however, digital and can be done within minutes. Your agent can help you get your PAN card linked and even check the status of linking.
If you do not have a PAN card, you need to get one if you want to enjoy the privilege of being a LIC policyholder when applying for the IPO. You can make an application for PAN online through NSDL or through UTITSL. Just fill in the required fields, submit your documents and pay the application fee and your PAN card would be issued. You can also apply for an e-PAN to get your PAN card in digitized form quickly so that you can link it to your LIC account and apply for the IPO.
LIC IPO was initially proposed in the Union Budget of 2020-21. When the issue is listed on the markets, it is expected to raise between Rs 40,000 and Rs 1 lakh crore. Ever since a lot of buzz has surrounded the Government’s disinvestment in LIC.
While the details of the IPO have not been disclosed yet, the Government made a smart move mentioning that existing policyholders would be given preferential treatment. The finance ministry proposed 10% of the total IPO size be reserved for bidding for the existing policyholders of LIC.
This allows them a higher potential to get an allotment in the IPO, giving the policyholders subscribing to the LIC IPO an edge over other investors.
While the exact date for the IPO is not known yet, every investor with a Demat account and valid PAN card can apply for the IPO.
Existing LIC policyholders may get a preferential status as the finance ministry proposed that 10% of the IPO be reserved for them. This basically means that if you are an existing policyholder, your chances of getting the allotment become a little higher.
To facilitate this, it is crucial to open a Demat account in your name (if you already don’t have one) and link your PAN number to your LIC policy to apply for the IPO whenever it opens. The process is online, simple and quick. What else can you ask for!