In run-up to the initial public offering (IPO), The Life Insurance Corporation (LIC) requested its policy holder to update the details of their permanent account number (PAN) and open a Demat account to participate in public problems.
Although the Ministry of Finance has not completed the timeline for LIC IPO, the government can launch a public offer in the January-March quarter. According to the proposed plan, LIC will offer up to 10 percent of the problem size to the IT policy holder.
Minister of Finance Nirmala Sitharaman announced in this year’s budget that LIC would regage the primary market with an IPO in 2021-22, as part of the encinvestment push to the Crore Rs 1.75 Lakh. The government targets Crore Rs 1 lakh from stock sales at public sector banks and financial institutions. RS 75,000 Crore remaining the possibility of originating from the divestment of CPSES.
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“To participate in any public offer, policy holders need to ensure that their PAN details are updated in corporate records. Subsequent subscribing to every public offer in India is only possible if you have a valid Demat account,” said Lic in advertisements in all prominent newspapers .
The ad also said that updating PAN details is important from the KYC perspective for participation in the proposed IPO.
If the policy holder does not have a Demat account, they must get one at its own expense, LIC said in the ad.
“You will pay a fee to open a Demat account and or publishing pan and maintain a fever or additional cost. All such fees must be solely borne by you. There is no fee that will be borne by the company,” he was clarified.