LIC Policyholders must update PAN details by February 28 to be able to apply under Policyholder quota in IPO
The objectives of the offer are to achieve the disinvestment agenda of the government and for LIC to get benefits of listing the equity shares on the stock exchanges.
Life Insurance Corporation of India (LIC), the leading insurer and financial conglomerate, has instructed its policyholder to ensure that their PAN details are updated in the policy records by 28 February 2022 for being considered as an eligible policyholder for application for its forthcoming mega public issue.
The PAN updation can be done on LIC website either directly https://licindia.in/Home/Online-PAN-Registration or with the help of agents.
The aggregate of reservations for Eligible Policyholder(s) shall not exceed 10 percent of the total offer size. The portion of the offer available for allocation to Eligible Policyholder(s), on a proportionate basis subject to the receipt of necessary approvals from the Government of India.
Policyholders (excluding such other persons not eligible under applicable laws, rules, regulations and non-Individual policy holders) of LIC having one or more policies as on the date of the DRHP (13th February 2022) and Bid/Offer Opening Date and are residents of India would be eligible to apply in this offer under the Policyholder Reservation Portion and avail of the discount.
What is Policyholder Discount
LIC and the Government of India, in consultation with the BRLMs, may offer a discount in the offer price to eligible policyholders, subject to necessary approvals as may be required, and which shall be announced at least two working days prior to the Bid/Offer opening date.
Public Issue volume
LIC is proposing an Initial Public Offer (IPO) of up to 316,249,885 equity shares of face value of Rs 10 each (“Equity Shares”) through an Offer for Sale by the President of India, acting through the President of India, acting through the Ministry of Finance, Government of India (“Selling Shareholder”).
The objectives of the offer are to achieve the disinvestment agenda of the government and for LIC to get benefits of listing the equity shares on the stock exchanges.
The Employee Reservation Portion shall not exceed 5% of LIC’s post-offer equity share capital.
LIC, a Domestic Systemically Important Insurer and a financial conglomerate, has been providing life insurance in India for more than 65 years and is the largest life insurer in the country, with a 64.1 percent market share in terms of premium (or GWP), a 66.2 percent market share in terms of new business premium (or NBP), a 74.6 percent market share in terms of number of individual policies issued, a 81.1 percent market share in terms of number of group policies issued for Fiscal 2021, as well as by the number of individual agents, which comprised 55 percent of all individual agents in India as on March 31, 2021. (Source: the CRISIL Report).
