LIC IPO: The government is expected to launch the initial public offering (IPO) of the country’s largest insurer Life Insurance Corporation (LIC) in the fourth quarter (Q4) of the ongoing financial year (FY22).
The listing of LIC will be crucial for the government to meet its disinvestment target. The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sale and privatisation.
Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling the government’s stakes in public sector banks and financial institutions. The remaining Rs 75,000 crore would come as CPSE disinvestment receipts.
Explained |A look at LIC’s mega IPO, and its customers
The Cabinet had earlier this year in July cleared the disinvestment of LIC and a panel headed by the finance minister has been authorised to decide on the quantum of stake dilution. The government has already brought in required legislative amendments in the LIC Act for the proposed IPO through the Finance Act 2022.
In her Budget speech in February this year, Finance Minister Nirmala Sitharaman said the IPO of LIC would be floated in 2021-22.
Now, as per the proposed plan by the government, up to 10 per cent of the LIC IPO issue size would be reserved for its policyholders. Last week, the life insurer 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.
So, if you are an existing LIC policyholder and you want to invest in the upcoming LIC IPO, then you’ll need a Demat account and additionally, you must update your PAN details on your policy records.
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. Thereafter press Submit.
After this, you will see the status of your LIC policy and PAN link. If your PAN is not linked, then follow these steps:
Either go to LIC’s official website https://licindia.in/ or visit the direct page https://linkpan.licindia.in/UIDSeedingWebApp/
If you go to the website, on the home page itself select the ‘Online PAN Registration’ tab
In the Online PAN Registration page, tap the ‘Proceed’ button at the bottom.
Thereafter, on the new page, enter date of birth, gender, email id, PAN, full name as per PAN, mobile number, and LIC policy number.
Click the declaration checkbox.
Enter the captcha into the box.
From your registered mobile number, request an OTP.
On receiving the OTP, key in the digits into the portal and submit.
