LIC Policyholders IPO Reservation - Explained

Published on Sunday, February 13, 2022 by Chittorgarh.com Team | Modified on Thursday, April 28, 2022

Eligible Policyholder for reserved category in LIC IPO is the "LIC policyholder whose PAN number is linked to the policy as of February 28, 2022".

LIC IPO will have a reserved quota and special discount of Rs 60 per share for the eligible policyholders.

Criteria for LIC Policyholders Reservation in LIC IPO

To participate in LIC policy holders reserved quota, policyholders must meet the following criteria:

Resident Individual Policyholders of LIC having one or more policies as on February 13, 2022 are eligible.
LIC Annuity policyholder is eligible, but not the beneficiary.
Policyholder's PAN details should be updated with LIC on or before February 28, 2022.

LIC Policyholders Reserved Quota Size

LIC IPO reserved up to 10% of the total issue size for LIC policyholders. The policyholder's reserve category will be similar to the retail category but it may have a special discount of Rs 60 per share. There is a limit of Rs 2 Lakh per IPO application in reserved policyholder category.

Discount for LIC Policyholders in LIC IPO

There is a discount of Rs 60 per share discount on the final offer price in LIC IPO for eligible LIC policyholder who bids in the reserved category for policyholders.

LIC Policyholders Reservation Allotment

In case of LIC IPO policyholders quota gets oversubscribed, then the allotment will be done on a proportionate basis. It is to be noted that eligible policyholders can place a maximum bid of Rs. 200,000 (net of policyholders discount).

LIC IPO Researved Category (Policyholder, Employee and Retail)

LIC IPO Multiple Applications

A LIC policyholder can apply for LIC IPO shares using 2 IPO applications in the following categories:

Policyholder + Retail Category
Policyholder + HNI (NII) Category

LIC IPO Limits in Reserved Quotas

Rs 2 lakh investment limit in policyholders, employees, and retail investors' quotas.
Policyholders can Increase limits by bidding in the "policyholders + retail" quota (Rs 2 + 2 lakh).
Employees can Increase limits by bidding in the "employee + policyholders + retail" quota (Rs 2+2+2 lakh).

Advantages of Reserved Quota in LIC IPO

Policyholders get Rs 60 per share discount on the final offer price.
Rs 45 per share discount in retail and employees' quota.

Eligible Policyholders for Reserved Policyholders Quota in LIC IPO

LIC IPO Shares Effective Price for Policyholder, Employee and Retail

Quota	Effective Price
Policyholders	Rs 889 (Rs 60 discount)
Retail	Rs 904 (Rs 45 discount)
Employee	Rs 904 (Rs 45 discount)
QIBs	Rs 949
HNIs	Rs 949

Frequently Asked Questions

1. Can I apply for more than one application in LIC IPO if I have multiple LIC policies with the same PAN number?
Only one IPO application is allowed in the reserved category of LIC IPO for LIC policyholders. It doesn't matter how many LIC policies you hold. The thumb rule is one individual (one pan number) = one IPO application in a category.

A LIC policyholder can apply for LIC IPO shares using 2 IPO applications in the following categories:
1. Policyholder + Retail Category
2. Policyholder + HNI (NII) Category
A LIC policyholder who is also an employee of LIC can apply for LIC IPO shares using 3 IPO applications in the following categories:
1. Policyholder + Employee + Retail Category
2. Policyholder + Employee + HNI (NII) Category
Discuss this question
2. How many shares are reserved for LIC policyholders in LIC IPO?

Up to 10% shares are reserved for Eligible Policyholder(s) in LIC IPO as per DRHP. Note that the reservation is only for policyholders whose PAN number is linked to one of the policies.

Discuss this question
3. What is the maximum bid under LIC policyholders reservation?

Eligible LIC Policyholders who have linked PAN in LIC records can place a maximum bid of Rs. 200,000, net of discount to policyholders under the policyholders reservation quota. They are allowed to apply at the cut-off price, and accordingly, the cap or upper price will be the IPO bid amount.

Discuss this question

Rate this article

4.3

Rating:

Vote Here ...

12 Comments

12. D K singh

| Link|May 5, 2022 10:29:47 AMReply

I purchased a lic policy on 14.02.2022 and linked my PAN with policy same date. Can I apply i policyholders quota? Please clarify. Yr reply is highly solicited.

11. Santjyo

| Link|February 20, 2022 7:03:12 PMReply

Can we apply in both catagory RETAIL INVESTOR AND POLICY HOLDER.....??

11.1. IPOTraders

| Link|May 4, 2022 7:36:30 PM

Yes, if you are having a lic policy and same was linked to pan no before 28 feb 2022

10. Mordhwaj Singh Choudhary

| Link|April 27, 2022 5:57:06 PMReply

Please explain if I have a proposal date of 27 Feb 2022 in my LIC Policy, will I be eligible under the LIC Policy Holders' quota or retail investors' quota?

10.1. IPOTraders

| Link|May 4, 2022 7:35:09 PM

If you pan was linked to the lic policy before 28 feb 22, you are eligible for policyholder quota, otherwise go for retail category (in retail category any one can apply, whether he/she have lic policyor not, it doesn't matter)

9. KartikSM

| Link|May 1, 2022 6:57:11 AMReply

How to avail the discount while applying for IPO from AngelOne, Zerodha or any other platforms?

9.1. IPOTraders

| Link|May 4, 2022 7:32:07 PM

Just select the category, retail / employee / policy holder. Rest will be done by the system itself.

8. Nahid

| Link|May 2, 2022 1:10:11 PMReply

My policy got matured in 2021 august. Can i still apply in policy holder category?

8.1. IPOTraders

| Link|May 4, 2022 7:30:36 PM

No, you are not eligible

7. Nilesh

| Link|May 2, 2022 3:27:44 PMReply

Those who are updated PAN in LIC account in APR 2022 month are they eligible forapplication to policyholder quota...?

6. Sumit Sharma

| Link|May 1, 2022 12:46:40 PMReply

I have linked my policy on dated 28.02.2022 but on the same date the applications could not showing linked. Can I am eligible for policyholder.

5. YOGESH MITRA

| Link|April 30, 2022 11:35:08 AMReply

Yes one can Apply in both the categories Retail+Policyholder (If policy commencement date is before 13th feb n linked with pan before 28th feburary)

4. Archana

| Link|April 29, 2022 12:07:40 PMReply

Can NRI elibible to buy under LIC Policyholder Catergory if they have PAN linked to their policy

3. Mangrish

| Link|February 18, 2022 7:19:50 PMReply

Helle sir/ma'am
Had a doubt,How is the allotment going take place on proportionate basis if there is a maximum limit of RS.2Lakh per bidder?

3.1. Sanjay Patel

| Link|April 27, 2022 1:15:24 PM

Proportional basis criteria is not new rule. all the time this rules applied to all the IPO where there is over subscription. Most of the time the person with min bid (15 Shares) is getting allotment first and the person who is applied more shares also get min allotment ( 15 shares). Govt want that most all should get allotment so proportional base rule is applied . Its totally program based allotment. Anybody cant predict that who is going to get.

2. DEKASN

| Link|April 27, 2022 10:58:25 AMReply

Grateful if anybody can explain if PMVVY policy holders are eligible to apply under Policy Holders quota with discount of Rs 60/-

1. abhyuday

| Link|February 28, 2022 3:50:44 PMReply

Can desputed Policy holders also apply for LIC of India IPO?

More articles in this category...List of all Articles

LIC Policyholders IPO Reservation - Explained

Criteria for LIC Policyholders Reservation in LIC IPO

LIC Policyholders Reserved Quota Size

Discount for LIC Policyholders in LIC IPO

LIC Policyholders Reservation Allotment

LIC IPO Researved Category (Policyholder, Employee and Retail)

LIC IPO Shares Effective Price for Policyholder, Employee and Retail

Read more about LIC IPO

Frequently Asked Questions

1. Can I apply for more than one application in LIC IPO if I have multiple LIC policies with the same PAN number?

2. How many shares are reserved for LIC policyholders in LIC IPO?

3. What is the maximum bid under LIC policyholders reservation?

12 Comments