IPO IPO: While the government is working out plans to launch the LIC IPO as soon as possible, policyholders are also preparing to participate in the share sale of the state-run insurance giant. The IPO of the Life Insurance Corporation of India (LIC) is probably the largest of its kind in the country. According to a report citing Tuhin Kanta Pandey, secretary of the Ministry of Investment and Public Asset Management, the draft prospectus for red herring is likely to be submitted on Thursday or Friday.
Pandey had previously indicated that LIC IPO shares will be offered to policyholders at a discount. “Under the store window there is a certain reservation. We also have a policyholder window. We have determined under the LIC Act that up to 10 percent of the issue can be offered to policyholders on a competitive basis with some discount. There will also be reservation for workers,” he was quoted as saying.
Pandey’s statement and LIC’s decision to reserve a portion specifically for policyholders sparked a surge in interest among the category to bid for the shares during LIC’s first share sale IPO, marking a significant of the government’s divestment targets. The LIC IPO is an ambitious government project.
In December last year, the insurance giant had urged policyholders to link their PAN to LIC in order to participate in the LIC and also open demat accounts. “To participate in such a public offering, policyholders must ensure that their PAN records are updated in the Company’s records,” it said in an ad following the announcement of LIC’s IPO.
The LIC IPO participants must also ensure that they have a valid demat account. “You would incur costs for opening a demat account and or PAN issuance and maintaining the demat account or other ancillary costs,” the insurer added in the ad.
How to pair PAN-LIC for LIC IPO
1. Go to the official LIC website at the link https://licindia.in/ or visit the direct link at https://linkpan.licindia.in/UIDSeedingWebApp/
2. Select Online PAN Registration option on the home page and then click Continue
3. Provide your details including PAN, LIC policy number, mobile number and email address. You must be careful during this step and provide all details correctly
4. Enter Captcha in the appropriate box
5. Request an OTP from your registered mobile number
6. Enter the OTP in the portal and then submit
If you cannot link PAN to LIC online, you can also contact a LIC agent. If you do not have a PAN, it is recommended that you link both as soon as you receive the document. You are now eligible to participate in the LIC IPO.
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