{"id":1040,"date":"2021-12-27T16:27:51","date_gmt":"2021-12-27T16:27:51","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=1040"},"modified":"2021-12-27T16:27:53","modified_gmt":"2021-12-27T16:27:53","slug":"lic-reserves-10-ipo-for-its-policyholders-policyholders-need-to-update-pan","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/lic-reserves-10-ipo-for-its-policyholders-policyholders-need-to-update-pan\/","title":{"rendered":"LIC reserves 10% IPO for its policyholders, Policyholders need to update PAN"},"content":{"rendered":"
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After long years, India must be prepared for massive disinvestment by the Government of India. In Fy2022, the government has set a disinvestment target of Rs 1.75 lakh crore, with strategic sale of IDBI Bank, BPCL, Shipping Corporation, Container Corporation, Neelachal Ispat, Pawan Hans among others.<\/p>\n\n\n\n

But the hustle and buzz in the new year is around the biggest life insurer of the country and gem company of the government of India, i.e Life insurance corporation of India (LIC). It will be one of the biggest IPOs to hit, in the history of the Indian stock market. Lots of numbers and valuation of LIC\u00a0 and decisions on the same have delayed the LIC initial public offering, but it is worth the wait.<\/p>\n\n\n\n

The LIC IPO is expected to hit the market by March 2022, with the valuation process of the insurance behemoth now completed.\u00a0In the disinvestment process, the Government of India is looking to divest 5-10% equity in the life insurance corporation of India (LIC).LIC\u00a0 has been made market-ready for IPO post 27 legislative changes to the Life Insurance Corporation Act, 1956 through the Finance Act, 2021.<\/p>\n\n\n\n

GoI was expected to mop over 1 lakh crores, but the point to be kept in consideration is the actuarial valuation of the embedded value (EV) \u2014 a key metric in the valuation of insurers. However, LIC, as of now has been exempted from disclosing its embedded value (EV). Draft Red herring prospectus is indicated to have the details of computation of embedded Value(EV) done by\u00a0the world\u2019s largest provider of actuarial services, Milliman. <\/p>\n\n\n\n

On the pricing of the IPO, it will be decided by the government through a Cabinet committee, post-approval of SEBI. To smoothen the IPO process for large entities like LIC, the securities exchange board of India has made some regulatory changes, like It has relaxed the minimum offer rule to 5% of the post-issue equity if the post listing market value of the company is over Rs1-lakh crore. Further, it also has relaxed the minimum public shareholding norm to 10% within two years and 25% in five years. <\/p>\n\n\n\n

As the biggest insurer in the country comes closer to its maiden public offering, Lic has asked its policyholders to update their Pan cards, so they could take part in the IPO. If the sources are to be believed,10% of the LIC IPO will be reserved for its policyholders. <\/p>\n\n\n\n

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LIC policyholders must make their PAN updated with their policies, so the corporation has the records of the holder’s PAN. Policyholders must hold a Demat account, in addition to their PAN updating to participate in one of the biggest IPOs the Indian market will witness.<\/p>\n\n\n\n

For updating and checking the Permanent Account Number (PAN) with LIC step to be followed:-<\/strong><\/p>\n\n\n\n