The LIC initial public offering (IPO) is expected to be the largest in the history of the Indian stock market. Several traders and investors are keen to participate in the huge IPO since, if listed, the market valuation of LIC would be equivalent to that of major firms like Reliance Industries Limited (RIL) and Tata Consultancy Services (TCS).
Staff and policyholders of the nation’s largest insurer would receive a reduction of the floor price.
The government did not reveal the discount that will be granted to policyholders or LIC workers in the public offering in the DRHP. According to regulations, up to 5% of the issue size can be designated for workers and 10% for policyholders.
The question now is whether policyholders with joint accounts or expired policies are eligible to participate in LIC’s IPO.
POLICYHOLDERS WITH JOINT ACCOUNTS IN LIC
LIC policyholders who have joint accounts are eligible to participate in the impending IPO. Only one of the two policyholders, however, will be willing to apply for shares under the Policyholder Reservation Portion.
According to the LIC’s Draft Red Herring Prospectus (DRHP), the applicant bidding in the offer’s Permanent Account Number (PAN) must be updated in the policy records.
According to the draught documents of LIC’s IPO, the applicant must have a Demat account in his or her name, and if the Demat account is joint, the applicant must be the first or principal holder of the Demat account.
POLICYHOLDERS WITH LAPSED POLICIES IN THE LIC
Even if one’s LIC insurance has expired, he or she can still apply for shares in the LIC’s IPO through the policyholder Reservation Portion. LIC, on the other hand, has imposed a requirement on such policyholders.
As per the LIC’s DRHP, any policies that have not vacated our records due to maturity, surrender, or the policyholder’s death are eligible for reservation under the Policyholder Reservation Portion.