LIC asks policyholders to update their PAN details to participate in IPO
Mumbai:
Life Insurance Corporation of India (LIC) has asked all its customers to update their Permanent Account Number (PAN) details in their policy records by February 28, to be eligible to participate in its upcoming public issue, Draft Red. According to Herring Prospectus (DRHP).
On February 13, the state-run insurer had filed a draft letter with capital markets regulator SEBI for sale of 5 per cent stake by the government for an estimated Rs 63,000 crore.
The initial public offering (IPO) of over 316 crore shares or 5 per cent government stake is likely to hit the market in March and insurance sector employees and policyholders will get a discount on the floor price.
“A policyholder of our corporation shall ensure that his/her PAN details are updated in the policy records of our corporation at the earliest. A policyholder who has not updated his/her PAN details with our corporation before the expiry of two weeks from the date The filing of this DRHP with SEBI (i.e. up to February 28, 2022) will not be considered as an eligible policyholder,” according to the DRHP.
PAN updation can be done directly on LIC’s website or with the help of agents.
It further said that policyholders having one or more policies of LIC as on the date and date of opening of DRHP and who are residents of India will be eligible to apply for this offer.
IPO is an offer for sale (OFS) by the Government of India. There is no fresh issue of shares by LIC. The government has 100 percent stake or more than 632.49 crore shares in LIC. The face value of the shares is Rs 10 per share.
LIC Public Issue will be the biggest IPO in the history of Indian stock market. Once listed, LIC’s market valuation will be at par with top companies like RIL and TCS.
The public issue is expected by March and the proceeds will be crucial to meet the revised disinvestment target of Rs 78,000 crore in the current fiscal.
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