LIC IPO: 12 million policyholders have demat accounts, says report

Ever since the Life Insurance Corporation (LIC) announced launching the initial public offering (IPO), 65 million LIC policyholders have shown interest to get the much-touted share of the largest insurance company in the country, an official said. Of them 12 million have dematerialised accounts, the official added.

The LIC has set a price band of Rs 902-Rs 949 per equity share. The government intends to raise Rs 21,000 crore through the issue.

The officer said 10 per cent reservation is given to the policyholders in the IPO, whose shares have been earmarked.

“Whosoever is the policyholder, if they have linked their PAN with the policy details by February 28, they are eligible to participate in the LIC IPO through reservation category,” Jain said.

Explaining, the DIPAM director said any policyholder can invest up to Rs 2 lakh in the reservation category and also Rs 2 lakh in the retail category. The LIC policyholders would get Rs 60 discount, he added. According to Jain, the 65 million policyholders can participate if they open their demat account. 

“As of now, through the depositories we could make out that around 12 million demat accounts have been opened by the policyholders,” Jain said. The bid opens on May 4 and closes on May 9. 

Jain said the government wishes to bring corporate governance to LIC and "to share the good stories." “The true value of the company is determined in the capital market. So you have to start with the capital market,” Jain said.