LIC IPO [Policyholder Quota]

LIC filed its prospectus with SEBI recently. If you’re following updates on the LIC IPO, you may already know there’s a policyholder category in the IPO. Here’s a brief outline for the uninitiated:

If you hold an LIC policy, you will be entitled to a discount in the LIC IPO. The price of the IPO and the quantum of discount is yet to be fixed.

To apply in the policyholder category, you need to fulfil two conditions listed in the prospectus:

  1. You have purchased your LIC policy on or before Feb 13th, 2022
  2. Your PAN has been mapped to your LIC policy on or before Feb 28th, 2022

How can I check if my PAN is already linked with my LIC Policy?

To check whether your PAN is already linked to your LIC policy:

  1. Visit this page.
  2. Enter your Policy number, Date of Birth, PAN, and captcha in the respective fields and press submit to see your LIC policy and PAN link status.

How do I link my PAN with my LIC policy?

To update your PAN with your LIC policy:

  1. Visit this page.
  2. To complete the process. You will need your PAN, along with the list of policies you hold. Click on “Proceed” at the bottom of the page.
  3. On the next page; Enter your Date of Birth, as per PAN, Gender, Email ID, PAN, Full name as per PAN, Mobile number, Policy Number (In case you hold multiple policies, click on “Add Policy” and proceed to enter another policy number)
  4. Click on the deceleration checkbox
  5. Enter the captcha.
  6. Click on the “Get OTP” option.
  7. Once you receive OTP on your registered mobile number, enter the OTP and click “Submit”.

Click here to learn more about the LIC IPO.

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Is PM Vaya Vandana Yojana policyholder eligible?

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Yes. All policyholders (excluding group policies) are eligible.

Refer to page 569 of the prospectus:

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then you won’t be eligible for policy holder quota.

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You can refer to this FAQ if you have any queries regarding the Policyholder Reservation Portion in the LIC IPO.


Is it necessary for policyholders to have a demat account to apply for shares in the Offer?

Yes. As per SEBI regulations, no equity share can be issued by any company in physical form and the equity shares can only be issued in dematerialized form. Hence, any one, whether policyholders or retail investors, should have a demat account for applying in the Offer.


Is there any lock-in period for the shares purchased through the Policyholder Reservation Portion?

There is no lock-in period and the policyholders can sell the Equity Shares immediately on the listing of the shares if they choose to do so.


I am having a policy with different Life Inurance company. Can I apply for the equity shares of LIC in the offer under the Policyholder Reservation Portion category?

No, Bidding under the Policyholder Reservation Portion is only for policyholders of LIC. However, you can apply under the Retail or Non-Institutional Bidders category.


Is there any minimum number of Equity Shares for which the policyholders need to apply?

There is a minimum number of Equity Shares 15 that will have to be applied in the offer in respect of all categories. Hence, the eligible policyholder(s) also have to apply for the said minimum 15 number of equity shares.


What is the maximum amount which eligible policyholder(s) can apply under Policyholder Reservation Portion?

The eligible policyholder(s) can apply for such number of Equity Shares in multiples of 15 equity shares such that the bid amount does not exceed ₹200,000 (net of Policyholder Discount).


Is there any minimum balance of equity shares to be kept in the demat account?

No minimum balance is required to be kept in a demat account.


Can a policyholder apply from the demat account of his/her spouse or son or relative?

No. The policyholder has to have the demat account in his/her name.


Is it possible to apply for shares for more than ₹200,000 (net of Policyholder Discount)?

No. The maximum bid amount is limited to ₹200,000 (net of Policyholder Discount, if any).

However, Eligible Policyholder(s) can also apply under the Retail Investor (for an additional amount of up to ₹200,000 (net of Policyholder Discount)) or Non-Institutional Investor category (more than ₹200,000 (net of Policyholder Discount)).


How much is the discount for the eligible policyholder(s) under the offer?

The eligible policyholder(s) are offered a discount of ₹ 60 per equity share. In case, the offer price (the price at which shares are allotted to retail and other investors) is ₹X, the eligible policyholder(s) will be allotted equity shares at ₹(X - Z) per equity share.


Will the investment in equity shares LIC qualify for tax exemption?

No, investment in equity shares of LIC does not qualify for tax exemption, as per income tax rules.


At what price the eligible policyholder(s) should bid for within the price band?

The eligible policyholder(s) can bid at the cut-off price. However, in that case it is necessary to keep the bid amount blocked for investment at the Cap Price (maximum price) net of discount, since the Cap Price may turn out to be the cut-off price.


I have a joint life policy. Whether I and my spouse both will be eligible for reservation or not?

Only one of the two can apply for IPO under the Policyholder Reservation Portion category. The PAN number of the applicant bidding in the offer (you or your spouse) needs to be updated in the policy records. The applicant has to have a demat account in his/ her name and in case the demat account is joint, the applicant needs to be the first /primary holder of the demat account.


My major daughter is studying outside India. Whether she would be eligible to Bid under the Policyholder Reservation Portion category as she is having a policy in India?

She needs to be residing in India during the Bid/Offer period to be eligible for applying in the offer.


I am a proposer of a policy for my minor son. Whether I am eligible for reservation under the Policyholder Reservation Portion?

Since you are the owner of the policy and hence being a policyholder, you are eligible for reservation under the Policyholder Reservation Portion.


I am having a policy of LIC which is in lapsed condition. Am I eligible for reservation under the Policyholder Reservation Portion?

All policies which have not exited records of LIC by way of maturity, surrender, or by way of death of the policyholder are eligible for reservation under the Policyholder Reservation Portion.


I am a policyholder (Karta) under HUF policy. Whether I can apply for the IPO?

Yes, if you are applying for IPO as a Karta you are eligible to bid under the Policyholder Reservation Portion.


How can I link my PAN to my policy?

The easiest option is through the option made available on the website of LIC for updating the PAN. You need to have your PAN number, policy number, mobile number, and email ID and through a very simple process, your PAN number will be updated. You may also approach LIC offices wherein the PAN number can be updated.


I had submitted proposal papers before the date of DRHP but received policy bond later. Am I eligible to apply?

To be eligible for reservation under the Policyholder Reservation Portion category, the policy should have been issued on or before the date of this Draft Red Herring Prospectus (Feb 13th, 2022) and should not have exited by way of surrender, maturity, or death claim on the Bid/Offer opening date.


I have a joint demat account in the name of “my spouse and me”. We have two separate policies and PAN is linked therein. Can both of us apply in the Offer based on that one joint demat account?

As per SEBI regulations, individual applications cannot be made by both beneficiaries of the demat account. Application can be made only in the name of the first/primary beneficiary.


I am having a Pradhan Mantri Vaya Vandana Yojana policy. Whether I am eligible to apply for the Equity Shares of LIC in the Offer?

Yes, all policies other than group policies qualify for Bidding in the Policyholder Reservation Portion.


Under my annuity policy, annuities have already started. Whether I am eligible to apply for the Equity Shares of LIC in the Offer?

Yes.


I am spouse of policyholder (now deceased) under an annuity policy and currently receiving annuities. Am I eligible to apply for the Equity Shares of LIC in the Offer?

No, since you are not a policyholder and only a beneficiary, you are not eligible to apply in the Offer.


Is the Allotment to the eligible policyholder(s) guaranteed under Policyholder Reservation Portion?

No, the allotment is not granted. Approximately 10% of the offer size is reserved for eligible policyholder(s). The allotment will be subject to competitive bidding and will depend on the demand in the bidding process.


I am a nominee under a policy issued by the Corporation, am I eligible to Bid for the Equity Shares under my name?

No, only the eligible policyholder(s) is eligible to Bid under the Policyholder Reservation Portion. Nominee is not eligible.


What is the last date for updating the PAN in the policy records?

The last date is Feb 28th, 2022. If it is not registered before Feb 28th, 2022, you are not eligible.


Whether NRI policyholders or other policyholders residing out of India can apply in the Offer?

No, only resident Indians can apply.


Can senior citizens apply in the Offer or any age restrictions?

There is no age restriction. All eligible policyholder(s) on the date of filing Draft Red Herring Prospectus (Feb 13th, 2022) and the policy continuing without exit on the Bid/Offer opening date are eligible to apply in the Offer.


Will the Allotment be based on the premium amount or sum assured or number of policies?

All eligible policyholder(s), irrespective of premium amount or sum assured or number of policies will be treated under the same footing and the equity shares will be allotted on a competitive bidding basis.


Is there any condition of minimum premium or sum assured to be eligible for Bidding under the Policyholder Reservation Portion?

No such condition. All eligible policyholder(s), subject to rules are eligible to bid under the Policyholder Reservation Portion.


Eligibility of bids and the bidding scenarios for eligible employee(s) and the eligible policyholder(s)


Type of Bidder Applied in Employee Reservation Portion (up to ₹200,000 (net of Employee Discount) Applied in Policyholder Reservation Portion (up to ₹200,000 (net of Employee Discount) Applied in Retail Portion (up to ₹200,000) Applied in Non-Institutional Portion (more than ₹200,000) Eligibility status of such bids
1 Eligible employee who is also an eligible policyholder (both bids being under the same PAN) Yes Yes Yes No Application made in Employee Portion, Policyholder Portion, and Retail Portion will be considered as valid applications and will not be rejected as multiple bids
2 Eligible employee who is also an eligible policyholder (both bids being under the same PAN) Yes Yes No Yes Application made in Employee Portion, Policyholder Portion, and Non-Institutional Portion will be considered as valid applications and will not be rejected as multiple bids
3 Eligible employee who is also an eligible policyholder (both under the same PAN) Yes Yes Yes Yes Applications made in Employee Portion and Policyholders Portion will be considered as valid bids and will not be rejected. However, applications made in the Retail Portion and Non-Institutional Portion will be considered as multiple bids and both the bids will be rejected.

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I have “LIC Mutual Fund Balanced Advantage Fund” since 03rd Nov 2021. Would I be eligible for the IPO Policyholder quota?

15 years policy ending on March 2022 and is the person eligible?

This is only for the policyholders of LIC. Not for unitholders in mutual fund schemes of LIC AMC.

To be eligible to apply under the policyholder’s category. The policyholder should not have exited by way of surrender, maturity, or death claim on the IPO opening date.

Hi all,

I have raised the request yesterday for PAN linking.

How long would it take reflect as linked PAN?

I’m a LIC policyholder and I’d like to apply for 3 lots.

As the policyholder allotment is proportionate basis. Should I apply one bid with 3 lots (i.e., 45) ar cut off price or should I apply three bids with one lot each at cut off price? Which one’s better?

I applied for 10 lots for LIC IPO which is 150 shares, and I have received allotment of only 58 shares why allotment is not in lot size like all other IPO’s

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