With the last quarter of the financial year coming to an end, all eyes are on the company’s mega initial public offering (IPO). LIC, Govt likely to file draft papers LIC IPO With markets regulator SEBI till next week, news agency PTI quoted a top official as saying. Finance Minister Nirmala Sitharaman in her 2022-23 budget speech had said: “LIC’s public issue is expected to come up soon.”
LIC policyholders need these two things to participate in the IPO
So, if you are an LIC policyholder and wish to participate in the upcoming IPO, you will need two things – a PAN account linked to your LIC policy account and a demat account.
In the upcoming LIC IPO, up to 10 per cent of the issue size will be reserved for policyholders.
The life insurer has asked its policyholders to update their PAN so that they can participate in the proposed public offering.
“For participating in any such public offering, policyholders must ensure that their PAN details are updated in the records of the Corporation. LIC had earlier said in a public notice that subscription to any public offering in India is possible only if you have a valid demat account.
The craze for LIC IPO is so high that some people are even buying new policies just to be eligible for IPO.
1) A PAN account linked to your LIC policy account
PAN details are a must if you want to subscribe to LIC IPO
Here is how you can check and update your PAN with your LIC policy:
demat account
Demat account is one of the main requirements for buying and selling shares in the equity markets. These accounts are maintained by depository organizations like NSDL and CDSL. Documents like Aadhar, PAN details and address proof etc. are also required. LIC has over 25 crore policyholders as against 8 crore existing demat accounts.
“On an average around 20-30 lakhs, the entire broking industry is opening demat accounts per month. If we compare investments in the financial market versus population in India, the ratio is quite low,” said Ravi Singh, Vice President and Head of Research, Share India Securities.
Manoj Dalmiya, Founder & Director-Proficient Equities Ltd. said, “There is an oversubscription expected, so we recommend applying through 2-3 different demat accounts so that the chance is higher.”
Why is LIC listing important for the government?
LIC listing Important for government to meet low revenue projections 78,000 crore for the current financial year. Government has so far raised about 12,000 crore from privatization of Air India and stake sale in other PSUs.
Life Insurance Corporation of India is a statutory insurance and investment corporation, incorporated in 1956 and headquartered in Mumbai. It is a government owned company in India. LIC of India has the highest market share in terms of new business premium and as regards number of policies/schemes. As of December 2021, LIC’s market share for New Business Premium was ~66% which was much higher than the total market share of private players.
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