What is LIC IPO and how to multiply your money 2 or 3 times by it?

LIC of India, the biggest name in Insurance sector is going to launch an  IPO (Initial Public Offer).  Indian government wants to meet the disinvestment target of current financial year by selling  a part of its ownership in LIC of India to public so  Government of India announce to reduce his ownership in LIC.  On 26-02-2022 The Union Cabinet of India permit up to 20 per cent foreign direct investment (FDI) in LIC for complete the disinvestment target of the country by this  foreign direct investors can buy up to 20% of LIC’s shares.

Here we are going to provide every information about LIC IPO

About LIC

LIC of India is the only government sector and biggest insurance company of India. it owns more then 65% share of insurance market and offers product like Life insurance, ULIP, Term insurance, Health insurance etc. LIC operates its business through approx. 2000 branches, 110 divisional office with more then 110000 permanent employee and 13 lakh agent also LIC expend their work in many country like Fiji, UK, Nepal, Bangladesh, etc.

• LIC is not just a insurance company but also trust of everyone in insurance sector
• Only Government insurance company of India
• Holding 65% share of insurance sector in India
• Holding 4% to 5% stocks of all stock listed in share market

IPO Date

LIC yet not announce IPO open date for subscription but  it is expected in 2nd week of march.

 Announcement

The LIC of India has filed DRHP (Draft Red Herring Prospectus) at SEBI. As per the DRHP, 35% of the shares offered will be reserved for the retail investors, 10% for the LIC policy holders whereas 5%  will be reserved for the LIC employees.

LIC  and Government of India announced 10% reservation for policy holder and also 10% discount on issue price. So here we are going to explain the procedure to take advantage of reservation by the policyholders.

The Policyholder must have two things  to take benefits of reservation and discount

• Having Pan card linked to policy
• Having DEMAT

How to link pan  to LIC policy

Pan number can to linked to the policy by visiting the  branch or online . visiting a branch is a time-consuming process but online process is very simple and easy. That’s why pithyinfo team suggests to do it yourself . Here are some key factor which you have to know before linking PAN

• Your PAN card
• Mobile no linked to Policy
• Policy No

NOTE- Any policyholder who want to take benefits  of policyholder reservation in LIC IPO, should link their  PAN to policy on or before 28-02-2022.

Now you can link your pan card to your policy online by following the below procedure

1. First of all type in google – https://linkpan.liconline.com.
2. Enter your DOB which is entered in your pan card.
3. Enter your gender information.
4. Enter your email id.
5. Enter your name as mention in pan card.
6. Enter mobile no which is linked to your policy.
7. Enter Policy no which you want to link with pan
8. Click on the declaration checkbox and Enter the captcha.

After above procedure you receive an OTP for verification. enter OTP and click on submit button. your PAN number linking process completed .

DEMAT Account

To invest in any IPO, you must have a  DEMAT account.  so if you want to apply  LIC IPO in any category  i.e. as  Retail investor, Policyholder, Employee. you must have a DEMAT account.

We will discuss in detail in our next post about how to open a Demat account and its use

I hope ‘What is LIC IPO and how to make money from it?’ This post will be very useful to know about LIC IPO and if you have doubt in any point  you can ask by commenting  about it.