LIC IPO: The state-owned Life Insurance Corporation of India (LIC) is the country’s largest life insurance firm, which is planning an IPO, in which the government intends to sell a part of its stock to the public.
According to media reports, the Insurance Regulatory and Development Authority of India (IRDAI) has approved the request to allow LIC India shares to go for Initial Public Offering (IPO). LIC’s board of directors will meet today to finalize the specifics of the IPO and take the paperwork to market regulator SEBI.
The government currently holds 100 per cent stake in LIC, which has assets worth Rs 44 lakh crore in FY21. According to broking firm Angel One, the size of the IPO will be between Rs 70,000 crore and Rs 1 lakh crore. After the IPO, the market cap of LIC will be Rs 13-15 lakh billion.
It has been reported in the media that LIC policy holders can get a discount on the price of the shares offered in the IPO. Depending on its valuation, the government may sell its 5-10% stake in LIC. As a result, multiple policy holders can subscribe to an IPO.
LIC IPO will raise many questions, new example will be created, issues related to corporate governance will come to the fore
Earlier, in an advertisement, LIC said, “Policyholders in order to participate in any such public offering shall be required to ensure that their PAN details are updated in the records of the corporations. In addition, in India any A valid demat account is required to subscribe to the public offering. Hence, policyholders should have a valid demat account.”
For LIC IPO, policy holders should have these two things:
The PAN of the policy holder should be updated on the LIC portal.
Policyholders should have a demat account.
How to update PAN details on LIC website:
1- Visit the official website of LIC https://licindia.in/.
Or directly go to the page- https://linkpan.licindia.in/UIDSeedingWebApp/
2- From the home page, select the option ‘Online PAN Registration’.
3- On the online PAN registration page, tap on the ‘Proceed’ button.
4- Enter your correct email address, PAN, mobile number and LIC policy number.
5- Enter the Captcha code in the box.
6- Click on ‘Get OTP’.
7- When the OTP will come, enter the OTP on the portal and submit.
How to Check PAN-LIC Status?
1- Go to https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
2- Enter the policy number, date of birth and PAN details, as well as the captcha. Then press the submit button.
What would happen to demat account?
To subscribe for shares in an IPO or buy and sell stocks on the stock exchanges, first you need to have a demat account. There are two main depositories in India – NSDL and CDSL. Many financial institutions including many banks are partners in these depositories and hence they are called ‘Depository Participants’ or DPs.
LIC IPO: Draft paper can be submitted in SEBI today, IRDAI has approved
Examples of DPs include: Stock Holding Corporation of India (SHCIL), ICICI Bank and HDFC Bank, which offer demat account service.
If the LIC policyholder already has a demat account, there is no need to open a new account. If you do not have a Demat account, you can open an account with any Depository Participant (DP) of your choice.
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