If you're a LIC Policyholder, there is news for you!

The government-owned Life Insurance Corporation of India (LIC) filed its Draft Red Herring Prospectus as part of its endeavour to go public on February 13, 2022. The company that has the largest share in India's life insurance market at 64.1 per cent is putting 31.62 crore shares for sale. LIC's IPO is touted to be the country's largest IPO ever, apart from being the biggest government-owned entity going public.

LIC may be subject to requisite approval to reserve some of its Offer Size for policyholders and may offer a discount on the Offer Price. But if you are a policyholder of LIC and want to invest in the to be India's largest initial public offering then you will have to update your PAN details on the LIC Portal and should also have a Demat account for the purpose. Simply link your PAN with your Policy No. latest by February 28, 2022.

According to the DRHP, 10% of the IPO is reserved for policyholders. Apart from that, policyholders will also be eligible for a discount over the floor price. How can policyholders link their PAN to LIC policies - to be eligible to apply in the LIC IPO in the policyholder category:

How to Link: Process 1

Step 1: Visit: https://www.licindia.in/Home/Online-PAN-Registration

Step 2: Enter your personal details including mobile no., PAN, Policy number, etc.

Step 3: Confirm your details by entering the OTP sent to your mobile number

Process 2 for linking

How to Link your PAN Card to your LIC Policy?

You can update your PAN card details on the LIC website. Here are the steps to follow:

1. Go to LIC's official website - https://www.licindia.in/

2. On the Home Page, click the "Online PAN Registration" option.

3. Once you have arrived on that page, click on the "Proceed" button

4. The next page will ask you for your email address, PAN card details, mobile number and LIC policy number. Input these

5. Enter the correct Captcha code and click on the "Get OTP" option

6. Enter the OTP into the portal and click on the "Submit" option.

Your PAN card details will be updated on LIC's system.

While all IPOs require PAN details for subscription, LIC has made it mandatory for policyholders to link their PAN details with their policy in order to apply in the policyholder criteria. That is in part to fulfil their KYC requirements. All policyholders who intend to apply for the IPO in the policyholder category must link their PAN details with their policy number by February 28, 2022.

What is a PAN Card, and Why Do You Need It?

India's Income Tax Department issues a Permanent Account Number (PAN) card to keep track of an individual's money inflow and outflow. That makes taxation easier for the IT department.

What is a Demat Account, and Why Do You Need It?

A Demat Account holds your securities in an electronic format. Once again, to apply for an IPO in the country, having a Demat Account is necessary. When you apply for IPO shares and get an allotment, these are automatically credited to your Demat Account.

To apply for the LIC IPO, you must have a Demat Account. If you already have one, you can use this for the application process. If you do not have a Demat Account, you need to apply for one with a registered Depository Participant (DP). Many brokerage firms and banks are registered DPs in India. Select one of your choices and open a Demat Account with them.

Conclusion

Once you have linked your PAN card with your policy details on LIC's website and have a valid Demat Account, you can apply for policyholder reserved shares in the LIC IPO.