The Life Insurance Corporation of India (LIC) IPO is set to hit the market in March as promised by the Center. It is learned that a portion of the IPO will be allotted to LIC policyholders. They will get some discount on the price of IPO. However, to get that qualification, they have to update the PAN compulsorily by February 28. This was stated in the draft Red Herring Prospectus (DRHP) submitted to the Securities and Exchange Board of India (SEBI) last Sunday.
In her budget speech in Parliament on February 1, Finance Minister Nirmala Sitharaman said LIC's IPO would hit the market in the current financial year. In the central budget of 2021, the center had proposed to raise money in the government treasury by releasing LIC's IPO in the market. According to the DRHP, up to 10 per cent of the issue outside the market will be allocated to policyholders.
It has been said that all the people residing in India who have one or more policies till the launch of the offer, can apply for the benefit from that allotment. For this, however, they have to update the PAN by February 28. This can be done directly or with the help of an agent on the LIC website. Otherwise the concerned policyholder will not be considered eligible for that benefit.
DRHP, on the other hand, further said that reinvestment in IDBI Bank could have a negative impact on LIC's financial health.
Corporate Correspondent
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