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The Frequently Asked Questions about LIC IPO Answered
All You need to know about LIC
1. When is the LIC IPO?
The IPO is set to open on May 4th and close on May 9th, 2022.
2. How many shares are being issued in the IPO?
The LIC IPO comprises an offer for sale of 221.37 million shares.
3. What is the price band for the issue?
The IPO comes with a price band of ₹902 TO ₹949 per Equity Share
4. What advantages do policyholders have in the LIC IPO?
A discount of Rs. 60 per share is being offered to eligible policyholders bidding in the Policyholder Reservation Portion. Thus, eligible policyholders can apply in the price range of Rs. 842 – Rs. 889
5. How can I know if I am an eligible policyholder?
LIC has stated that all policyholders have until 28th February 2022 to update their PAN card details on their website.
Check your Policy-PAN linking status on https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
6. What discount do retail bidders & employees get?
A discount of Rs. 45 per share is being offered to Retail Individual Bidders and also to eligible Employees. Thus, Retail bidders and Eligible employees can apply in price range of Rs. 857 – Rs. 904
7. What do I need to apply for the IPO?
One must compulsorily have two things to apply for the LIC IPO – a Demat Account and a PAN card. A Demat Account is needed to credit the shares if you receive an allotment. A PAN Card is essential for all IPOs so that the IT department can track the inflow and outflow of money for individuals.
8. When is the last date to link PAN card with LIC policy?
LIC has stated that all policyholders have until 28th February 2022 to update their PAN card details on their website.
9. What if I have multiple policies?
If you have multiple policies, then all policy numbers can be added. However, you can apply for the IPO only once, even if you have multiple policies.
10. Can non-policyholders participate in the IPO?
Yes, the IPO is for everyone. Non-policyholders can apply under the retail investors or institutional investors category. However, you may not get the benefits that policyholders may get.
11. Can senior citizens participate in the LIC IPO?
Yes, anyone with a valid PAN card and a Demat Account can apply for shares in IPO as an investor.
12. I am a proposer of a policy for my minor child. Whether I am eligible for reservation under the Policyholder Reservation Portion?
Since you are the owner of the policy and hence being a policyholder, you are eligible for reservation under the Policyholder Reservation Portion.
13. Is there a lock-in period?
There is no lock-in period for shares allotted in the IPO.
14. Can joint policyholders apply individually for share allotment?
No, joint policyholders cannot apply individually for share allotment. Only one of the two holders can bid in the IPO under the Policyholder Reservation Portion. The other individuals can apply under the retail category with their PAN cards.
15. Can a policyholder apply for IPO from someone else's Demat Account?
No, a policyholder using the Policyholder Reservation Portion to apply for the IPO needs to have their Demat Account to be eligible. If you do not have a Demat Account, you can open one with a valid Depository Participant
16. What is the maximum amount one can apply for under Policyholder category?
The maximum application amount under Policyholder category is Rs. 2,00,00
17. Can I apply under both policyholder and Retail category
Yes. If you are an eligible policyholder (PAN linked on LIC portal by February 28, 2022), you can apply under both categories – Policyholder and Retail
18. Can I apply under the policyholder category with an HUF account?
Yes. If the policy is in the name of the Karta, application under policyholder category can be made
19. Will employees and policyholders be allotted shares irrespective of total applications? Is allotment under these categories guaranteed?
No, allotment is not guaranteed. Approximately 10 percent of the offer size is reserved for eligible policyholder(s). The allotment will be subject to competitive bidding (on similar lines as Retail Bidding) and will depend on the demand in the bidding process.
20. I have NPS account and a partial investment corpus is invested in LIC. Will I be eligible to apply under the Policyholder category?
No. One needs to have a policy in his/her name to be eligible for the category
21. Are NRIs eligible to apply under the Policyholder quota?
No. Only Resident policyholders can apply in the policyholder category
22. Is LIC super annuation group policy member eligible for the Policyholder quota & discount?
No. Group policy members are not eligible for the policyholder quota
Conclusion
This article has attempted to answer some of the most frequently asked questions about the LIC IPO. For more information, read the Draft Red Herring Prospectus.
Disclaimer
ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is a Member of National Stock Exchange of India Ltd (Member Code :07730) and BSE Ltd (Member Code :103) and having SEBI single registration no. INZ000183631. Name of the Compliance officer (broking): Mr. Anoop Goyal, Contact number: 022-40701000, E-mail address: complianceofficer@icicisecurities.com. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.
The information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities Limited. The contents of this mail are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. While due care has been taken in preparing this mail, I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any inaccurate, delayed or incomplete information nor for any actions taken in reliance thereon. This mail is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject I-Sec and affiliates to any registration or licensing requirement within such jurisdiction. Products and Features are enabled for NRI Customers based on select countries as per local laws & jurisdiction.
ICICI Securities Limited has been appointed as Book Running Lead Managers to the initial public offer of Life Insurance Corporation of India. The article is prepared based on publicly available information.
This mailer is for information purposes only and does not constitute, nor should be regarded as, an offer, invitation, inducement, solicitation or advertisement with respect to the purchase or sale of any security of the Corporation, and should not be construed as such, in India, the United States of America ('United States') or any other jurisdiction. This mail may not be taken, published, transmitted or distributed in or into the United States directly or indirectly. No Shares may be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933 (the 'Securities Act'), as amended. Receipt of this mail constitutes an express agreement to be bound by such confidentiality and the other terms set out herein. Any failure to comply with this restriction may constitute a violation of applicable securities laws. Neither the Corporation nor any seller of securities intends to register any portion of any offering in the United States or to conduct a public offering of securities in the United States.
The Corporation, is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India and the Registrar of Companies, Maharashtra. The DRHP is available on the website of the Securities and Exchange Board of India and on website of respective Book Running Lead Managers.
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