LIC policyholder with lapsed policy can apply for discounted IPO shares?
LIC Policyholders with a lapsed LIC policy can apply for shares in the LIC’s initial public offering (IPO) through the policyholder Reservation Portion.
As per LIC IPO DRHP it has been clarified that
I am having a policy of the Corporation which is in lapsed condition. Am I eligible for reservation under the Policyholder Reservation Portion?
All policies which have not exited our records by way of maturity, surrender or by way of death of the policyholder are eligible for reservation under the Policyholder Reservation Portion
Also Check: LIC IPO Details
In addition to the above clarification, the following queries were also clarified in DRHP
Is it necessary for policyholders to have a demat account to apply for shares in the Offer?
Yes. As per SEBI ICDR Regulations, no equity share can be issued by any company in physical form and the equity shares can only be issued in dematerialized form. Hence, any one, whether policyholders or retail investors, should have a demat account for applying in the Offer
Is there any lock-in period for the shares purchased through the Policyholder Reservation Portion?
There is no lock-in period and the policyholders can sell the Equity Shares immediately on listing of the Equity Shares, if they choose to do so.
Is there any minimum number of Equity Shares for which the policyholders need to apply?
There is a minimum number of Equity Shares (x) which will have to be applied under the Offer in respect of all categories. Hence, Eligible Policyholder(s) also have to apply for the said minimum x number of Equity Shares, as specified in the Offer Documents.
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