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LIC IPO: India’s largest insurer – Life Insurance Corporation of India (LIC) – is expected to file its IPO (initial public offering) prospectus soon. While LIC is ironing out the finer points before launching the mega LIC IPO, brokers are getting ready to cash in on the huge interest from LIC policyholders ahead of the LIC IPO. The government’s decision to create a 10 per cent policyholders’ quota in the LIC IPO – a first-of-its-kind – and the possibility of a discount on IPO price, has pushed several policyholders to open their Demat accounts. A Demat account is a must to invest in any IPO.

LIC Policyholders Need these Two Things to Participate in the LIC IPO

The life insurer has asked its policyholders to update their PAN, so that they can participate in the proposed public offer. “In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the Corporation’s records. Further subscribing to any public offering in India is only possible if you have a valid DEMAT account,” LIC had said in a public notice earlier.

PAN Account Linked to your LIC Policy Account

Here’s how you can check and update your PAN with your LIC policy:

  • Go to https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
  • Enter your policy number, date of birth(dd/mm/yyyy), PAN and captcha in the designated boxes.
  • Then press Submit.
  • After this, you will see the status of your LIC policy and PAN link.

LIC Policyholders must have a Demat Account 

Demat account is one of the main requirements for buying and selling shares in the equity markets. These accounts are maintained by depository organisations like NSDL and CDSL. Documents like Aadhar, PAN details and address proof, etc are also required. LIC has over 25 crore policyholders, compared to 8 crore existing Demat accounts.

LIC IPO: DRHP to be Files with Sebi soon 

Secretary to the Department of Investment and Public Asset Management (DIPAM) Tuhin Kanta Pandey said approval of the insurance regulator is awaited, post which the draft prospectus, detailing the size of the share sale, will be filed, PTI reported. “Within 7-10 days, the DRHP (Draft Red Herring Prospectus) for the LIC’s IPO will be filed. Informally, we have been consulting Sebi on various issues. The size of the issue would be mentioned in the DRHP,” he said.

Once it gets approval from the market regulator Sebi, the LIC’s IPO will hit the market in March, Pandey said. The government aims to come out with the initial public offer (IPO) and subsequently list LIC on the bourses by March, he added.

Actuarial firm Milliman Advisors LLP India has worked out the embedded value of LIC, while Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors. Under the embedded value method, insurance companies’ present value of future profit is also included in their present net asset value (NAV).

The government has appointed 10 merchant bankers, including Goldman Sachs (India) Securities Pvt Ltd, Citigroup Global Markets India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd, to manage the mega IPO of the country’s largest insurer.

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