LIC IPO: No discount if policy was bought after Feb 13

New Delhi: Insurees will not be eligible for the policyholder discount allowed for the Initial Public Offering (IPO) of the Life Insurance Corporation of India if the policy was bought after February 13.

Only those who have bought their policy on or before February 13 will be eligible for the policyholder discount. They will get a discount of Rs 60 on each share. The policy should have been linked to the Permanent Account Number by February 28. The rest can apply as general investors. They will get a discount of Rs 45.

Points to note

In the case of a joint life insurance policy then both insurees will get the exemption meant for policyholders in the IPO.

Barring group policies, all policyholders will get the exemption. The person should be living in India at the time of the opening of the IPO. NRIs with LIC policy cannot apply as policyholders.

Proposers of minor children can also apply as policyholders. No exemption for nominees. The policyholder can apply even if the policy has lapsed.

While bidding one should use own UPI ID (account linked with PAN). 

If a joint Demat account is used then the applicant should be the primary holder of the account.

Under the Non-Institutional Investor (NII) quota one can apply for shares above Rs 2 lakh. However, retail bids cannot be given along with it. Similarly, those who have applied for retail bids cannot go for NII bids. There will be no discount on the NII quota.

Even though there is an opportunity to apply for the pre-open bid for LIC IPO on some apps at present, the applications will be handed over to the exchange on May 4 when the bid opens.

Important dates

IPO bid opening - May 4

Closure of Bid - May 9

Conclusion of allotment - May 12

Share listing - May 17

Bid timings: Barring the last day on May 9, bids can be given from 10 am to 5 pm for the rest of the days. On May 9 the bid is only till 3 pm.