Policyholders are preparing to participate in the state-run insurance giant’s share sale as the government works out plans to launch the LIC IPO as soon as feasible. The Life Insurance Corporation of India’s (LIC) first public offering (IPO) is expected to be the largest of its kind in the country.
According to the Draft Red Herring Prospectus (DRHP), which the company with the SEBI submitted, 10% of the shares have been earmarked solely for current LIC policyholders. Furthermore, on September 30, 2021, the company had over 28 crore policyholders, according to DRHP.
In addition, the company intends to sell its 31.6 crore shares in an offer-for-sale in the coming IPO. The IPO is also likely to assist the government in meeting the current year’s disinvestment objective, which is set at Rs 78,000 crore in the Budget 2022.
How Easily Can you Apply for LIC IPO?
Applying for a LIC IPO is very easy and takes less time. To apply for the LIC IPO, there are some essential things you need to have before you apply, like a savings account through which you can create a Demat account, PAN card and trading account. Nowadays, you can apply for an IPO, which is very easy as many financial companies offer their services to the investors to use their services. You can also use IIFL Securities to monitor the LIC IPO prices, and when it hits the market, you can buy the IPO.
To use the IIFL Securities, you need to have an account, and to do so, you can follow these simple steps for account opening:
- You can visit www.indiainfoline.com for opening a trading account. There are no opening account charges. Click on it and then enter your basic information.
- You will receive a one-time password (OTP) to ensure the owner has requested your mobile number.
- You will be sent a link to your registered email address. You must enter the OTP sent to your registered email address to proceed with this process.
- After you have verified the OTP, you must complete the online Account Opening Form; if any help is needed in filling the form, you can contact customer service.
- Following that, your Regional Manager will call you to obtain the necessary documents which you send it online.
- The account will get opened within 24 hours after the documentation process is finished and the forms are received at Head Office.
Once you have registered with IIFL Securities, you must visit the website. On the home page, you will see the option to invest in the share market. You will see the IPO after clicking that option; the page will show the upcoming IPO option. There will be many IPO shown in which the LIC IPO will be there, click on that option now. Then you can see the detailed information about LIC IPO. When the IPO is listed, you will see the option of Buy or Sell and then start trading.
Applying for LIC IPO as a Policyholder
As one of their biggest captive client bases, LIC is certainly providing expanded rights to its policyholders in the form of a guaranteed quota of 10%. Policyholders have lower prices and a very simple and attractive IPO process. When it comes to investing in the LIC IPO, policyholders are quite interested and enthusiastic about the launch of this IPO.
There are some things you need to know before applying for LIC IPO:
- You will need a Demat account to apply for LIC IPO because you must have a Demat account by SEBI guidelines. As of now, there will be no issuing of shares in the physical format, so to trade, Demat is necessary.
- Policyholders will get a quote and get in the quota; you need to have a LIC policy. This quota is only applicable to the individual policyholder. Having a policy means that you need to pay the premiums regularly; failing to do so will not make you eligible.
- Investors can also bid for minimum lot size or multiple lot size, and the maximum bid amount is Rs 2,00,000 for the policyholder’s quota. Policyholders also have an option to apply for equity shares under the Non-Institutional Bidders category for an extra value of Rs.200,000 or more.
- The most important thing to be eligible for LIC IPO is linking PAN to the LIC policy. LIC provides a website to link them. You must update your PAN number, policy number, mobile number, and email address on the website. If you cannot do so online, you can visit your nearest LIC office to update the records using your PAN number. Check that the PAN is the same as the one used to apply for the IPO.