Home / Markets / Ipo /  LIC IPO date, price announced. 5 things that policyholders should know

LIC IPO: After a long wait, the Initial Public Offer (IPO) of insurance behemoth Life Insurance Corporation (LIC) of India is finally going to hit primary market next month. As per the information available on BSE website, LIC IPO price band has been fixed at 902 to 949 per equity share. Opening date for LIC IPO subscription is 4th May 2022 and it will remain open for bidders till 9th May 2022. Accor4ding to market observers, LIC IPO has made its debut in grey market as well because LIC IPO GMP (grey market premium) today is 48.

The Government of India (GoI) has announced discount for the applicants belonging to LIC employees' and LIC policyholders category. For LIC policyholders, the GoI has announced 60 per equity share discount whereas LIC employees have been given RS 45 per equity share discount in this long awaited IPO. However, LIC policyholders are advised to check the following 5 important information before applying for the LIC IPO and ensure that their application doesn't get rejected:

1] LIC policy date: Before applying for the LIC IPO under policyholders category, an applicant must check the date of LIC p[olicy buying because only those policyholders are eligible to claim this benefit who have bought their policy on or before 13th February 2022 — date of DRHP filing by LIC. Those who have bought LIC policy after 13th February will not be able to get benefit of 10 per cent quota for policyholders.

2] PAN link with LIC policy: Those LIC policyholders who want to claim 10 per cent reserved quota benefit for policyholders, should have a PAN-linked LIC policy and the linking must have been done on or before 28th February 2022.

"A policyholder of our Corporation shall ensure that his / her PAN details are updated in the policy records of our Corporation at the earliest. A policyholder who has not updated his / her PAN details with our Corporation before expiry of two weeks from the date of the filing of this Draft Red Herring Prospectus with SEBI (i.e., by February 28, 2022) shall not be considered as an Eligible Policyholder," LIC IPO DRHP informs

3] Eligibility for joint policyholders: In case of joint policyholders, either of the two will be eligible for claiming 10 per cent quota benefit.

4] Which policyholder can apply under policyholder category: Other than group policy, all policyholders are eligible to apply under policyholders’ category provided they fulfil other requirements. NRIs having LIC policy won't be able to apply under quota reserved for policyholders.

5] Lapsed LIC policyholder: In case of a lapsed LIC policy, the policyholder will be eligible to apply under policyholder category and claim 10 per cent quota benefit.

There will be no lock-in period for allottees, who applied under policyholders’ category.

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