LIC IPO: If you are a policyholder, this is how much discount you get

LIC IPO: If you are a policyholder, this is how much discount you get
  • The life insurance company will open its IPO on May 4 and close on May 9.
  • There is a special discount of ₹45 for retail investors and employees of LIC and a discount of ₹60 per share for policyholders of LIC.
  • Only those who have linked their PAN number with LIC policy are eligible for the discount.
State-owned insurance behemoth Life Insurance Corporation of India (LIC) will launch its initial public offering (IPO) next week from May 4 to May 9.

The government is looking to raise ₹21,000 crore by selling 22.13 crore shares or 3.5% stake in the life insurance behemoth. Besides, 10% of the issue size is being reserved for policyholders.

The government believes LIC will be a long-term value creation for investors and policyholders. “IPO is the first step of long-term value creation for LIC shareholders,” said Tuhin Kanta Pandey of the Department of Investment and Public Asset Management (DIPAM) at a press conference held on April 27.

He added, “We want to champion LIC as a long term-value creator in the equity markets.”

Investors can bid for a minimum share lot consisting of 15 shares. From 22.13 crore shares on sale, 2.21 crore shares are reserved for LIC policyholders while 15.81 lakh for employees.


A special discount of ₹45 is being offered to retail investors and employees of LIC while applying for the IPO. Similarly, a discount of ₹60 per share is being offered to policyholders associated with the life insurer.

Currency, there are about 30 crore policyholders with the company.

To apply under policyholder reservation and avail these benefits, one should have linked their PAN number with LIC policy. And the date to link that has already expired.

For those who have not linked PAN details, still have the opportunity to apply under retail investors quota and get a retail investor discount of ₹45 .

“A policyholder of our Corporation was required to ensure that his/her PAN details are updated in the policy records of our Corporation at the earliest. A policyholder who did not update his/her PAN details with our Corporation before expiry of two weeks from the date of the filing of the Draft Red Herring Prospectus with SEBI (i.e., by February 28, 2022) shall not be considered as an Eligible Policyholder,” said LIC in its red herring prospectus (RHP).

For those interested to apply but do not have a demat account, here are the steps on how to open one.

Note -- to invest in the stock market and IPOs, it is mandatory to have a demat account.

Steps to open a demat account

Step 1: Choose the broker you want to open an account with.
Step 2: Visit the company’s website and start the demat account opening process.
Step 3: Fill out the information required for know your consumer (KYC).
Step 4: Submit the scanned copies including identity proof, bank account statement, income proof, photo to complete the KYC.
Step 5: After submitting all the documents and verifying it, pay the required amount for trading.
Step 6: At the end of the process you will receive a unique 16-digit beneficial owner identification number (demat account no.), which will be used to access the demat account online.
Step 7: Login with the demat account number and walk in to your investments.

Adding to it, here are some important dates related to the IPO:

Issue details
Price band₹902 to ₹949
IPO open dateMay 4
IPO close dateMay 9
Allotment dateMay 12
Initiation of refundsMay 13
Credit of shares to demat accountMay 16
IPO listing dateMay 17
Minimum lot15

SEE ALSO: With an eye on IPL, Mukesh Ambani boosts his war chest with a ₹13,500 crore investment from Murdoch
Is Ola hurrying into its electric car dream?