Points To Note If You Intend To Participate In LIC IPO As Policyholder

Tentative offer period of LIC IPO has already been announced by media houses. And if also wish to participate in the country's largest ever public issue and participate from the policyholder's quota then here are the few pointers to note:

1. For the LIC policyholders, the portion reserved is equivalent to up to 10% of the total shares as offered as part of the LIC IPO which is entirely an OFS with no fresh equity issuance.
2. Similar to other investors in the LIC IPO, policyholders needs to update their PAN details. Also, they need to be maintaining a demat account for subscribing to the issue offer.
3. Note these LIC policyholders cannot apply or there are some limitations to apply for the discounted IPO price in LIC IPO:

• All of the policyholders other than those policyholders covered under group plans are eligible to apply for LIC IPO under policyholders' quota.

• Further as per the FAQs given out in the DRHP:

In case there is a joint policy held by 2 individuals then also only one person shall be eligible to apply for the shares under the policyholders quota. The FAQ on the same issue said, "I have a joint life policy. Whether I and my spouse both will be eligible for reservation or not? Only one of the two can apply for the Equity Shares under the Policyholder Reservation Portion category.

The PAN number of the applicant Bidding in the Offer (you or your spouse) needs to be updated in the policy records. The applicant has to have a demat account in his/ her name and in case the demat account is joint, the applicant needs to be the first /primary holder of the demat account."

Also, note a policyholder can apply in the LIC IPO only from his or her demat account only and not from anyone else's account.

Further even if you are a LIC policyholder but not a resident Indian but then also you are not eligible to apply for LIC IPO. Furthermore, the spouse of an annuity policyholder ( now no more) who is currently receiving annuities is not eligible to apply for the LIC's equity shares in the offer.