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 4^th and close on May 9^th, 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 28^th February 2022 to update their PAN card details on their website.

Also Read: How can policyholders link their PAN to LIC policies - to be eligible to apply in the LIC IPO in the policyholder category

    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.