LIC IPO: Two Important Things Policyholders Need To Check Before Applying For The Issue

LIC policyholder has to first ensure their policy is linked with their updated Permanent Account Number to be able to apply for IPO through various means

Life insurance Corporation logo seen displayed on a smartphone

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New Delhi: The much-awaited initial public offering (IPO) of the country's largest insurer Life Insurance Corporation (LIC) is set to hit the IPO market by next month. The government-owned company has filed its Draft Red Herring Prospectus and awaits market regulator Sebi's approval.

LIC has fixed the price band at Rs 902-949, with a discount of Rs 60 for policyholders, according to banking sources, reported ABP News.

In its draft filing, LIC stated that policyholders with one or more policies of the Corporation and are residents of India would be eligible to apply in this Offer under the Policyholder Reservation Portion.

However, the insurer also clarified on two important things before applying for the IPO.  Firstly, the policyholders have to ensure their LIC policy is linked with their updated Permanent Account Number (PAN).

"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 of the filing of this Draft Red Herring Prospectus with SEBI (i.e., by February 28, 2022) shall not be considered as an Eligible Policyholder," LIC noted in its draft.

The second most important thing is to ensure that the person has a Demat account matching PAN card details.

Know how to link PAN with your LIC policies

• Keep your PAN card handy along with the list of policies.
• You will need to click on the 'Proceed' option available in the instruction at the bottom.
• Then add details like the date of birth that is mentioned on the PAN card. Further, add Gender, Email ID, PAN, Full name as per PAN, registered Mobile number, and Policy Number. In case, if you hold more than one policy, then you should select 'Add Policy' and proceed to feed in the further details.
• Once the above process is completed, click on the deceleration checkbox.
• A unique captcha will be available on the screen. Add it as it is in the box and then click on the Get OTP option.
• LIC will send you an OTP on your registered mobile number. Add it in the required box and click on 'Submit'.
• After submitting the form, a message will be shown on the success of the registration request.
• You can also check your policy PAN status.

Once the policy is successfully linked with your PAN, then you can apply for the IPO through various means.