{"id":7658,"date":"2022-03-10T14:11:24","date_gmt":"2022-03-10T08:41:24","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=7658"},"modified":"2022-05-24T11:11:04","modified_gmt":"2022-05-24T05:41:04","slug":"how-to-apply-lic-ipo-as-a-policy-holder","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/how-to-apply-lic-ipo-as-a-policy-holder\/","title":{"rendered":"How To Apply to LIC IPO as a Policy Holder: Investor\u2019s Guide"},"content":{"rendered":"\n<p>2021 was the year it rained IPOs, with <a href=\"https:\/\/www.business-standard.com\/article\/markets\/fund-raising-through-ipos-at-record-rs-1-19-trillion-in-2021-shows-data-121122301236_1.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">63<\/a> companies raising Rs. <a href=\"https:\/\/www.business-standard.com\/article\/markets\/fund-raising-through-ipos-at-record-rs-1-19-trillion-in-2021-shows-data-121122301236_1.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">1.19<\/a> tn, a record for any year. And, this boom is expected to continue well into 2022. <a href=\"https:\/\/economictimes.indiatimes.com\/markets\/ipos\/fpos\/ipo-craze-to-continue-in-march-quarter-23-cos-line-up-public-issues-worth-rs-44000-cr\/articleshow\/88647859.cms\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">23 <\/a>companies are lined up to go public only in the first quarter of 2022! However, one <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> has everyone waiting with bated breath &#8211; <a href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/\">LIC<\/a>.&nbsp;<\/p>\n\n\n\n<p><meta charset=\"utf-8\">To know more about the <a href=\"https:\/\/www.tickertape.in\/blog\/uncover-lics-ipo-with-harsh-vora\/\">LIC IPO<\/a>, follow our article here: <a href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/\" target=\"_blank\" rel=\"noreferrer noopener\">LIC IPO: Date, Price, Review, News, Application and Details!<\/a><\/p>\n\n\n\n<p>The IPO of India\u2019s most prominent insurance company is touted to be the largest ever IPO to hit the Indian markets.&nbsp;<\/p>\n\n\n\n<p>But before we get into how you can go about applying for the IPO, let\u2019s take a step back and look at the bigger picture.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-apply-lic-ipo-as-a-policy-holder\/#Why-is-LIC-going-public\" title=\"Why is LIC going public?\">Why is LIC going public?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-apply-lic-ipo-as-a-policy-holder\/#Why-is-there-a-buzz-around-this-IPO\" title=\"Why is there a buzz around this IPO?&nbsp;\">Why is there a buzz around this IPO?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-apply-lic-ipo-as-a-policy-holder\/#How-can-you-apply-to-the-LIC-IPO-as-a-policyholder\" title=\"How can you apply to the LIC IPO as a policyholder?\">How can you apply to the LIC IPO as a policyholder?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/how-to-apply-lic-ipo-as-a-policy-holder\/#Steps-you-need-to-follow\" title=\"Steps you need to follow\">Steps you need to follow<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"why\"><span class=\"ez-toc-section\" id=\"Why-is-LIC-going-public\"><\/span><strong>Why is LIC going public?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Life Insurance Corporation of India (LIC) is a 100 % government-owned life insurance company. In the 2021 <a href=\"https:\/\/www.tickertape.in\/blog\/budget-2022-smalltalks-experts-share-their-opinions\/?utm_source=blog&amp;utm_medium=article\">Union Budget<\/a>, Finance Minister Nirmala Sitharaman announced the government\u2019s proposal to disinvest a 5-10% stake in LIC to mop up revenue for the Government. This IPO is expected to contribute nearly Rs. 1 lakh cr. towards decreasing the budget deficit.&nbsp;<\/p>\n\n\n\n<p>However, to clarify, LIC is not being privatized completely. Even after the IPO, the government will continue to have a majority stake in LIC to protect the interests of its 290 mn. policyholders.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"is\"><span class=\"ez-toc-section\" id=\"Why-is-there-a-buzz-around-this-IPO\"><\/span><strong>Why is there a buzz around this IPO?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>LIC is one of the oldest companies in India and has been growing strength to strength even as new-age insurances compete to take away market share. The sheer size of the subscriber base, size of the company, and its valuation for the IPO are talking points.&nbsp;<\/p>\n\n\n\n<p>It can, however, be difficult to gauge precisely how large this IPO is as a retail investor. LIC, the largest asset manager in India plans to raise Rs.50,000 cr. going public, the largest to date. For context, <a href=\"https:\/\/www.tickertape.in\/blog\/paytm-payment-bank-down-13-rbi-banned-adding-new-customers\/\">Paytm<\/a> IPO raised Rs.18,300 cr., Coal India and Reliance Power raised Rs.15,200 cr. and Rs. 11,700 cr., respectively. LIC\u2019s IPO is expected to be larger than all 3 (Paytm, Reliance Power, and Coal India) combined.&nbsp;<\/p>\n\n\n\n<p>The value of LIC&#8217;s assets is larger than the entire GDP of many countries including the UAE! Well, this mammoth amount is driven by the valuation of LIC\u2019s $511 bn. assets which include its millions of policies, fixed assets, and the sovereign guarantee of its policies.&nbsp;<\/p>\n\n\n\n<p>It is no wonder then that retail and institutional investors alike are eager to participate in this wealth creation opportunity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how\"><span class=\"ez-toc-section\" id=\"How-can-you-apply-to-the-LIC-IPO-as-a-policyholder\"><\/span><strong>How can you apply to the LIC IPO as a policyholder?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Every IPO has primarily two categories under which you can apply &#8211; retail investors and HNIs. However, the LIC IPO has a special category for policyholders as well. As proposed by the government, 10% of the issue will be reserved for policyholders.<\/p>\n\n\n\n<p>Typically in an IPO that expects a strong listing, the retail investor category gets oversubscribed multiple times, and hence getting allotment is a matter of lottery as dictated by <a href=\"https:\/\/www.tickertape.in\/blog\/sebi-gives-green-signal-to-ipos-of-six-companies\/?utm_source=blog&amp;utm_medium=article\">SEBI guidelines<\/a> on IPO oversubscription. Thus the policyholder category can be a good alternative to increase your chance of getting an allotment. However, do note if you are a policyholder and wish to apply as a retail investor as well, you will have to choose one single category via which you apply to the IPO.<\/p>\n\n\n\n<p>Now that is clear, let\u2019s dive into the specifics of applying for the LIC IPO as a policyholder!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"steps\"><span class=\"ez-toc-section\" id=\"Steps-you-need-to-follow\"><\/span><strong>Steps you need to follow<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li><strong>Ensure that you have an active Demat account:<\/strong> Just as any other investment activity, an active Demat account with a registered broker is mandatory for participation in the LIC IPO. The maximum amount you can <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> as a policyholder is Rs. 2 lakh, so also ensure that your bank account has the requisite amount you plan to invest.<\/li><\/ol>\n\n\n\n<ol start=\"2\"><li><strong>Ensure that your PAN records are updated on the LIC website: <\/strong>LIC has been chasing policyholders to update their PAN records as part of the KYC compliance process. Using the IPO as an impetus, they have made it mandatory for policyholders\u2019 PAN card details to be linked to the policy before the IPO application.<\/li><\/ol>\n\n\n\n<p>So go ahead and check your PAN status on <a href=\"https:\/\/linkpan.licindia.in\/UIDSeedingWebApp\/getPolicyPANStatus\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">https:\/\/linkpan.licindia.in\/UIDSeedingWebApp\/getPolicyPANStatus<\/a><\/p>\n\n\n\n<p>In case your PAN is not registered with your policy, you may update it at the LIC India\u2019s portal (<a href=\"https:\/\/licindia.in\/Home\/Online-PAN-Registration\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">https:\/\/licindia.in\/Home\/Online-PAN-Registration<\/a>) by providing your Policy number, date of birth, mobile number and email ID. You may also contact your LIC agent for any queries you may have. However, the digital process is seamless and should not take you more than a few minutes.&nbsp;<\/p>\n\n\n\n<ol start=\"3\"><li><strong>Apply for the IPO: <\/strong>To apply for the LIC IPO, visit your usual investing portal. Simply visit the IPO application section, choose LIC and remember to select the category as \u2018Policyholder\u2019. Submit your bid details as suitable and voila!<\/li><\/ol>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>The company is most likely to file its draft prospectus this month, with the issue hitting the markets no sooner than Q4 of the current fiscal year. However, despite the hype, remember that <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> markets are extremely risky and even the best of companies have had a tepid investor reaction and struggle to hold on indices as of today.&nbsp;<\/p>\n\n\n\n<p>But, all said, keep an eye on the headlines and you can soon expect to participate in a landmark event in India\u2019s financial markets!&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Confused whether you can apply for the upcoming LIC IPO if you are a policyholder? Click here to know more about the important steps to follow to apply for the LIC IPO.<\/p>\n","protected":false},"author":27,"featured_media":8224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[9,1727],"tags":[1499,208,237],"acf":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/08.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7658"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=7658"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7658\/revisions"}],"predecessor-version":[{"id":8639,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7658\/revisions\/8639"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/8224"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=7658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=7658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=7658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}