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LIC IPO: As the last quarter of the financial year is about to end, all eyes are on the mega initial public offering (IPO) of LIC. The government is likely to file draft papers for LIC IPO with market regulator Sebi by next week, news agency PTI reported quoting a top official. Finance Minister Nirmala Sitharaman in her 2022-23 Budget speech had said: "The public issue of the LIC is expected shortly."

LIC policyholders need these two things to participate in the IPO

So, if you are a LIC policyholder and you want to participate in the upcoming IPO, you will need two things - A PAN account linked to your LIC policy account, and a Demat account. 

In the upcoming LIC IPO, up to 10 per cent of the issue size would be reserved for policyholders.

The life insurer has asked its policyholders to update their PAN, so that they can participate in the proposed public offer.

“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. Further subscribing to any public offering in India is only possible if you have a valid DEMAT account," LIC had said in a public notice earlier.

The craze for the LIC IPO is so much that some are even buying new policies just to be eligible for the IPO.

1) A PAN account linked to your LIC policy account

PAN details are a must if you want to subscribe to LIC IPO

Here’s how you can check and update your PAN with your LIC policy:

Demat account

Demat account is one of the main requirements for buying and selling shares in the equity markets. These accounts are maintained by depository organisations like NSDL and CDSL. Documents like Aadhar, PAN details and address proof etc are also required. LIC has over 25 crore policyholders, compared to 8 crore existing Demat accounts.

“On average around 20-30 lakhs, Demat accounts are opening per month in the whole broking industry. If we compare the investment in the financial market vs population in India then the ratio is quite low," said Ravi Singh, Vice President & Head of Research, Share India Securities.

"Oversubscription is expected so we recommend applying through 2-3 different Demat accounts so that the chance is high," said Manoj Dalmia Founder and Director-Proficient Equities Limited.

Why is the LIC listing crucial for govt?

LIC's listing is crucial for the government to meet the lowered revenue estimates of 78,000 crore for the current fiscal. The government has so far raised about 12,000 crore from the privatisation of Air India and stake sale in other PSUs.

Life Insurance Corporation of India is a statutory insurance and investment corporation, incorporated in 1956 and headquartered in Mumbai. It is a government-owned company in India. LIC of India has the highest market share in terms of New Business Premium and No of Policies/Schemes is concerned. As of  December 2021, LIC’s market share for the New Business Premium stood at ~ 66% which was significantly higher than the total market share of the private players.


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