LIC IPO for Policyholders – How to check/update PAN online?

As you may be aware that LIC IPO for Policyholders is reserved for 10%. LIC is entering the primary market with its IPO. Even though the date of IPO details are not available, LIC asked its policyholders to update their PAN card with LIC and open a Demat account to be ready for subscribing under the reserved quota.

During the Budget 2021, the Government Of India proposed 10% of the LIC IPO size is to be reserved for policyholders. The wordings of the Budget 2021 proposal was as below.

“regarding various categories of persons in favour of whom an issuer may make reservations on a competitive
basis, in relation to a public issue, the Corporation may make a reservation on a competitive basis, to an extent of up to ten per cent. out of the issue size, in favour of its life insurance policyholders as one of the reserved categories for such
public issue.

Provided that the value of the allotment of equity shares to such a policyholder shall not exceed two lakh rupees, or
such higher amount as the Central Government may by notification specify.”

It again states what if the IPO is under subscribed.

“Provided further that, in the event of under-subscription in the policyholder reservation portion, the unsubscribed
portion may be allotted on a proportionate basis, in excess of the value referred to in the first proviso, subject to the total allotment to a policyholder not exceeding five lakh rupees or such higher amount as the Central Government may by notification specify:

Provided also that the policyholders in favour of whom reservation is made under this sub-section may be offered
shares at a price not lower than by more than ten per cent. of the price at which net offer to public is made to other
categories of applicants;”

This means LIC set a separate category for policyholders to apply for IPO. Policyholders of LIC schemes are eligible to apply for the IPO under this category, up to an amount of Rs.2,00,000 or any amount as specified during the notification. The government of India has announced that up to 10% of the issue size in LIC IPO will be reserved for Policyholders. A discount on the base price is also expected for this category of investors. Such offering is based on a competitive basis.

However, under subscription of LIC IPO is not impossible, hence let us not discuss those conditions.

LIC IPO for Policyholders – How to check/update PAN online?

Now few days back, LIC came out with an advertisement asking it’s policyholders to update their PAN details and also open the Demat account. This makes the IPO subscription and allotment easy under the reserved category of policyholders. Hence, if someone is interested to apply for LIC IPO under the category of LIC IPO for policyholders, then better to update the PAN card with LIC and also open the Demat account.

However, many of you might have already updated your PAN while buying the policy or after the policy was issued. Hence, better to check the PAN linkage status by clicking on the link of “Check Policy PAN status“. The screen looks like below, where you have to enter your policy number, date of birth and your PAN.

It is always better to check for all your policies and make sure that for all your policies the PAN is linked. However, if the status is showing that PAN is not linked, then you have to proceed for the next step.

Before updating the PAN to LIC policies, make sure to follow these instructions.

• Keep your PAN card handy along with the list of policies.
• You have to enter mobile number which is registered with your policy. If you have not registered your mobile number, then better you first update the same.

The steps to link your PAN with LIC policy is as below.

• Visit the page of “Link PAN with your policy” page (which looks like below).

• Enter the date of birth (as per PAN records), select gender, enter your email id, enter the PAN number, mention your full name as per the PAN, enter your registered mobile number and finally enter the policy number to which you wish to link your PAN (don’t forget to click on “Add Policy” tab next to the policy number entry field.
• After that click on the declaration link, enter Captcha and hit the button “Get OTP”. You will receive the OTP to your registered mobile number.
• Enter the OTP correctly in the form then submit it, the page will automatically show the window stating the successful registration on your request. 

Do remember that updating PAN details with your policy is not sufficient for applying under LIC IPO for Policyholders category. You have to open the Demat account before applying for LIC IPO. Hence, make sure that PAN Card update and also the Demat account opening (choose any broker of your choice) are in place before LIC hits the primary market with IPO.

Few questioned my sharing and pointed me that I am sharing some non-authentic links. For them, I suggest you to refer the below advertisement published in the Times of India (Bangalore Edition) on 5th December 2021. LIC mentioned the same procedure of what I shared above and also LIC shared the same links which I have shared above. I hope those who pointed me are now relieved 🙂

Disclosure – By writing this post, I am not recommending you to apply for LIC IPO. It is up to you to take a call. The purpose of this post is to share the information.