The IPO of Life Insurance Corporation of India (LIC) can open for subscription on the 10th of the next month. The issue is likely to close on March 14. 10% stake in LIC IPO will be reserved for policyholders. LIC policyholders can get a discount of 5 percent in the issue price. Today we are going to tell you whether the joint policyholders of LIC can apply for this IPO or not…
Let us tell you that LIC policyholders willing to participate in LIC’s IPO can do so only after the PAN details are updated and they have a demat account.
Know who can apply in joint policy
According to the draft red herring prospectus of LIC, in a joint LIC policy, only one person from both the policyholders can apply for an IPO under the reservation portion. The PAN number of the applicant (you or your spouse) bidding in the offer should be updated in the policy record. The applicant should have a demat account in his name, and if the demat account is also a joint one, the applicant should be the first/primary holder of the demat account.
You can apply for IPO
Similarly, not all policyholders of LIC are eligible to bid for shares in IPO under this reserve category. Policyholders who have applied for LIC policy, but have not yet received the policy document, are stated in the DRHP, to be entitled to reservation under the Policyholder Reservation Portion Category, as on the date the policy is filed this DRHP Should have been issued on or before or before the date of bid/offer opening on account of surrender, maturity or death claim.
Take special care of these things
To take LIC IPO, it is mandatory to have the Demat account and PAN updated. You cannot apply for your spouse, children or relatives from your demat account. Policyhold cannot invest more than Rs 2 lakh in a lot. How much share will be received per subscriber will depend on the issue price of the share. NRIs are allowed to invest in IPOs in India.