Life Insurance Corporation of India or LIC is the largest IPO, with a total market cap of Rs. 539,686 crore. The issue price is 316,249,885 Equity shares with a face value of Rs. 10. Formed in 1956, it has a 64.1% market share in premium and 66.2% new business premium (NBP). To invest in the much-awaited LIC IPO, you should have your PAN Card updated on the LIC portal and an active Demat Account.
It aims to achieve the benefits of listing the Equity shares on the stock exchange and carrying out an offer for sale of the mentioned shares by selling shareholders. Here are some details all policyholders must know:
Eligibility criteria
The policies opened before February 13, 2022, are eligible to apply for the IPO quota of policyholders, which is only 10%. Link your PAN Card and Demat Account to the LIC policy and apply for the IPO. Only individual policyholders are allowed to participate. In the case of joint accounts, both members can apply for LIC IPO with different Demat Accounts and PAN numbers.
Linking PAN Card
Log on to the company website to link your PAN Card to the LIC account for registering at the upcoming LIC IPO. Enter the policy number in the given space, your birth date, PAN details, and captcha, and submit them.
Linking Aadhaar Card
Visit the official website to link your Aadhaar Card to the LIC policy. Click on the Link Aadhaar and PAN to policy button. Read all the instructions carefully before proceeding. Enter the name mentioned in the Aadhaar, date of birth, and Aadhaar number on the new page. Click on the checkbox to select the gender. Enter your registered email ID, PAN number, UIDAI registered mobile number, and policy number.
Select the Add policy button. Enter the captcha in the respective box. Click on the ‘get OTP’ button and enter the OTP sent to the registered mobile number of the Aadhaar card. A message reflects on the screen about the successful linking of Aadhaar and policy. You receive the verification message through mail or SMS after a few days.
If you are applying for a new LIC policy, submit Aadhaar and PAN details with the application form. LIC completes the linking before giving any new policy.
Important points
LIC IPO is an offer for sale by the Government of India and no fresh issue of shares by the company. It holds over 632.49 crore shares. Note that IPO share price varies in the first few weeks of listing. It is considered a high-risk investment as one makes or loses money. Analyse before investing in an IPO because it is a high risk and reward game. The decision depends on many factors like issue price, discounts offered, and the market situation on the day of listing.