We’ve heard of big IPOs.
We’ve read about bigger IPOs.
And the biggest of all is expected to come soon - LIC.
After several long years, it seems like we’re going to witness India’s largest IPO ever - LIC (Life Insurance Corporation of India)
LIC IPO is unique in a lot of ways. It is not your average company - just to enable the listing, the government had to make 27 amendments to the Life Insurance Corporation Act, 1957. There were speculations that it might not happen, but the Government of India recently clarified that it is about to come in 2022.
Now for a company which has affected the lives of millions of Indians, there had to be some way of participating in LIC’s landmark moment. Usually investors are restricted to the following categories:
- Retail (can place bids under INR 2 Lacs)
- HNI (can place bids over INR 2 Lacs)
- Employees or Existing Shareholders.
This is one of the unique instances where as the company, LIC in this case, has created a special sub-category that allows its 29 Crore policy holders to apply for its IPO.
Getting IPO allocations in great companies is tough, but this is an amazing gesture extended by LIC towards its policyholders and we are incredibly excited and waiting for this landmark opportunity.
Last month, exchanges introduced a new sub-category “POL” (for policyholder) in preparation for the LIC IPO. It is estimated that up to 10% of the IPO portion would be reserved for these policyholders - or they might even be able to apply at a discount.
Now, this is all speculation and you will know more - exact details only when the documents for subscription are filed. But what’s known is - LIC IPO is coming and there is a special allocation for policyholders of LIC!
Enroll as Policyholder for expected IPO of LIC on Dhan
We are super excited to bring to you the option to enrol yourself for LIC IPO under the policyholder category on Dhan. It’s live on the latest app version of Dhan, both for Android & iOS.
If you’re a current LIC policyholder and not linked your PAN with policy, we’ve created a soft nudge for you to link your PAN to your existing LIC policy (the same verified PAN that you use at Dhan). This ensures that you don’t miss out just because of PAN mismatch / not present.
Once you link your PAN and mark yourself ready for the LIC IPO, we will automatically send in your IPO bid to the exchange under the policyholder category when you bid for the LIC IPO when it opens for subscription.*
Important: *Please note that you will still need to bid for the LIC IPO during the IPO subscription period. You will still have an option to apply via the Retail Category, however, the default category would be as policyholder.
Let us know how excited you are, in the comments!
-Anirudha
Product @ Dhan
