The IPO season is in full gear, with several IPOs set to make their stock market debut. More than 50 initial public offerings (IPOs) were listed on the stock exchange between January 2021 and December 15th, 2021. As the final quarter of the fiscal year 2021-22 approaches, another IPO – the LIC IPO – is keenly anticipated by investors. The first stage is for LIC to file their Draft Red Herring Prospectus (DRHP) with Sebi toward the launch of an IPO.
To participate in the much-anticipated LIC IPO, policyholders must first update their PAN details on the LIC portal and register a Demat account. LIC has set aside 10% of the issue size for its army of policyholders and intends to offer a discount to such investors in the IPO. Employees of the insurance company can also obtain a quote with a reservation of 5% of the issue size.
Those without a LIC policy can also participate in the IPO sale under the “retail” or “institutional” investment categories. For this, one can seek the assistance of a LIC agent.
Policyholders bidding under the ‘Policyholder Reservation Portion’ can use the Applications Supported by Blocked Amount (ASBA) and the UPI mechanisms to place their bids. After discount, the total amount of allocation to an eligible policyholder cannot exceed Ps 2 lakh.
Non-resident Indians (NRIs) can invest in IPOs in India, but not through the Policyholder Reservation Portion. As a result, NRIs with LIC policies will have to apply underneath the retail category.
To participate in the IPO, bidders must have a dematerialisation account, which is a means through which an individual holds stock market shares and other securities. LIC has requested its policyholders who do not have a Demat account to acquire one at their own expense.
- To open a demat account, you must first select a depository participant (DP), which could be an authorised bank, broker, or financial institution.
- Then, go to the broker’s official website and begin the demat account opening process. Then, under the ‘open Demat Account’ page, select a nominee for the account. The form’s required information must be submitted, and the KYC (Know Your Customer) process must be completed.
- You will be required to submit scanned copies of your documentation, such as identity and address evidence, bank account statements, and proof of income.
- After entering and validating the information, you must pay the brokerage fees for trading and obtain an in-person verification, either online or in person.
- The request to open a demat account is granted after verification. You will then be given a one-of-a-kind 16-digit beneficial owner identification number, also known as a demat account number. You will use this number to log into your demat account and begin trading online.
For Policyholders, to guarantee that your application for the LIC IPO is valid and accepted, ensure that your KYC information in your LIC Policy is up to date. If your address, contact number, or email address has changed since the time your LIC policy was issued, you must amend it before applying for the IPO. This is why LIC has been launching efforts to encourage policyholders to update their KYC information.
Here’s how to change your LIC policy information:
- Log in to the LIC website at https://licindiain.in and select eServices.
- In the dropdown menu, select “KYC update.”
- Upload all of the most recent documents and wait for LIC officials to verify them.
- Following successful verification, your KYC will be updated.
If you believe you previously linked your PAN Card number to your LIC policy, you can verify the status of the link to ensure everything is in order before applying for the IPO when it debuts. Furthermore, once you have completed the preceding steps and linked your PAN Card, you can check the linking status online at the LIC website.
Here’s a quick rundown of how the process works.
- To check the PAN linking status, navigate to https://linkpan licindia.in/UIDSeedingWebApp/getPolicyPANStatus on the LIC website.
- Enter your policy number, birth date, PAN Card number, and the captcha code that appears.
- When you click ‘Submit,’ the linking status will be displayed.
If you do not have a PAN card, you must obtain one if you wish to be considered a LIC policyholder when applying for the IPO. You can apply for a PAN online either the NSDL or the UTITSL. Simply fill out the appropriate fields, submit your papers, and pay the application fee to get your PAN card. You can also apply for an e-PAN to rapidly receive your PAN card in digitised form, allowing you to link it to your LIC account and apply for the IPO.
How to buy the LIC IPO through Zerodha
If you do not already have a Zerodha account, you can create one online and receive your login details within 24 hours. You can sign up using your mobile number on their website. To open an account, simply follow the simple on-screen steps. To proceed with the sign-up, you must input your PAN, bank account information, and personal information.
You can apply for the LIC IPO using any UPI-enabled app by taking the following two steps:
Put in your bid on Console.
Accept the UPI mandate on your smartphone.
The bid amount will be frozen in your bank account upon acceptance of the mandate. More information can be found by clicking here.