LIC IPO expected to open on 4 May: Here's how to apply, things to keep in mind for policyholders

The public issue of Life Insurance Corporation of India (LIC) is expected to open on 4 May. The Initial Public Offering (IPO), which is set to be the biggest-ever in the country, will bring an estimated Rs 21,000 crore to the exchequer.Ten percent of the LIC IPO has been reserved for policyholders. While bidding, a discount will also be offered to policyholders and LIC employees.Here is what policyholders should keep in mind regarding the Reservation Portion before the LIC IPO:

1. Only Indian residents, who are LIC policyholders, are eligible to apply. NRI policyholders and other policyholders are not eligible to apply for the Reservation Portion.
2. All policies, except group policies are eligible to apply under the Reservation Portion. People with lapsed LIC policies can also bid under the reserved portion.
3. People how are eligible to apply for the issue must ensure that their PAN card details must be updated in the policy records. Policyholders who did not update their PAN details before 28 February this year, will not be eligible to apply for the public issue, according to the draft red herring prospectus of the company filed before SEBI in February.
4. A demat account is a must before applying for the LIC IPO.

Here’s how to apply for LIC IPO:•    Login to your online banking account.•    Select the investments section and click on the IPO/e-IPO section given there.•    Fill in your depository details and account details.•    Once the verification process is complete, select the “Invest in IPO” option•    Select the IPO you want to apply for and enter details such as bid price and number of shares.•    Read the Terms and Conditions carefully before placing the bid.•    Confirm the order and click on “Apply now” to finalise your bid.Once the share allotment date is finalised, you can also visit the website of the Bombay Stock Exchange to check your share allotment status.Steps to check LIC IPO allotment status:

• Visit the website- https://www.bseindia.com/investors/appli_check.aspx.
• Click on the issue type and then select ‘LIC’ as the issue name.
• Enter the required details such as PAN Card and click submit.
• The LIC share allotment will appear before you.

LIC has also reserved five percent of shares for employees. The public issue is expected to be open till 9 May.