LIC IPO Decoded

LIC IPO which is touted to be the biggest IPO launch in the history of India is upon us. It has been in the reckoning for the past few years and has always been a talking point amongst investors. What makes this the mother of all IPOs, is the sheer size and the sovereign guarantee is an important aspect too. The government of India is backing the IPO and it’s a great reward to the people of India. LIC is India’s biggest insurance provider, founded in 1956. It is an Indian insurance and investment corporation under the ownership of the Ministry of Finance, Government of India and is the only government-owned insurance provider.

The LIC IPO is tentatively expected to launch in Q4 of the financial year 2020-21, details regarding the Minimum Investment required, Lot size, Price Range, and Issue size are yet to be announced but the Pre-IPO process is already underway.

LIC IPO Policyholder Category

There have been announcements of a tentative 10% reserve of the IPO specially for LIC Policyholders. There are also reports of a discount on the issue price for LIC policyholders, these can only be confirmed once the DRHP is issued. Eligible holders would be able to apply for the IPO under the ‘Policyholder Category’

How policyholders can prepare for this IPO

As a policyholder, to be eligible to apply for the IPO you need to fulfil the following:

1. Update you PAN card details in your LIC records.You can simply do this by visiting: https://licindia.in/Home/Online-PAN-Registration. Ensure you have your policy number, PAN card details, mobile phone readily available to complete the process.
   
   You can also do a simple check to confirm if your PAN card number is linked to your policy by visiting: https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
   
2. Open a DEMAT account and ensure you use the same PAN card number (as the one linked to your LIC policy) when doing so. You can complete this process in a matter of minutes using https://signup.trdr.in/

When the time comes to apply for the IPO, selecting the ‘Policyholder’ category at the time of application is what would need to be done to avail this category.