LIC IPO: Things Policyholder You Should Be Aware Of Before The Launch Of Its IPO

India's biggest insurer LIC's IPo is expected to launch in 2022 by the end of March. However, the launch date is not confirmed. Its draft red herring prospectus (DRHP) does not specify the offered size, but the central government will offload 31.6 crore shares or 5 percent of its stake in the company.

Apart from the massive issue amount - believed to be between Rs 50,000 and Rs 90,000 crore - the IPO is also being discussed for the unique quota it has established.

LIC has decided to carve out a policyholders' quota in its IPO, which is a first of its kind. While the actual percentage has yet to be determined, it might be as high as 10%. However, in order to be qualified for the reservation, you must meet certain requirements as a policyholder. Here's everything you need to know about the IPO before you invest.

1. The exact amount set aside for policyholders has yet to be determined by LIC. The 10% criterion, however, must be met. Only when their LIC policy and PAN are connected may policyholders get the 10% quota set aside for them.
2. Policyholders whose LIC policies were bought on or before February 13, 2022, will be eligible to apply under the policyholders' quota.
3. Under the retail category, both LIC policyholders and LIC workers are allowed to apply.
4. One can invest a maximum of Rs 2 lakh as a policyholder under the quota.
5. Those covered under group policies will not be eligible to apply under this quota.
6. To participate in an IPO, you must have a Demat account. You should also be the initial account holder in your Demat account if you want to apply for LIC's IPO as a policyholder. If the account is a shared one, you should be the principal holder.
7. It is necessary to update your PAN in LIC's records. By February 28, you must have completed the procedure of upgrading your PAN on the LIC's site. If you do not comply, you will not be regarded as a "eligible" policyholder, according to LIC.