LIC IPO: PMJJBY policyholders will also get discount in IPO? Chairman gave this update

A policyholder cannot invest more than Rs 2 lakh in LIC IPO. 10% of the public issue will be reserved for policyholders.

The insurance company has asked to link the policy with PAN by February 28.

The country’s largest insurance company Life Insurance Corporation of India (Life Insurance CorporationThe preparations for the IPO are going on in full swing. Meanwhile, LIC Chairman MR Kumar said that the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJAY)PMJJBY) also the policyholder of LIC IPO ,LIC IPO) will be able to take advantage of the discount. According to the draft Red Herring Prospectus (DRHP) filed last week, eligible policyholders of LIC will be given a reservation in the IPO, under which the maximum bid amount per person will not exceed Rs 2,00,000.

The DRHP said that those who have one or more policies of LIC as on the date of opening of bids and who are residents of India can apply under the policyholder reservation. The reservation so made shall not exceed 10 per cent of the total offer size.

35% reserve for retail investors

According to the DRHP, 35 per cent of the public offering will be reserved for retail investors, 5 per cent will be reserved for LIC employees while 10 per cent of the public offering will be reserved for its policyholders. Hence, an LIC policyholder will be able to apply in both retail as well as policyholder category.

LIC’s IPO is expected to come by March. Once listed, the market valuation of LIC will be at par with top companies like RIL and TCS.

What is PMJJBY Scheme?

Let us tell you that PMJJBY is offered through LIC only. PMJJBY is an insurance scheme launched by the Prime Minister for people in the age group of 18 to 50 years. The risk coverage under this plan is Rs 2 lakh in case of death of the life insured due to any reason. Its premium is Rs 330 per year.

This plan is being offered by Life Insurance Corporation of India and all other life insurance companies. This government scheme is offered or administered through LIC.

To buy PMJJBY, you need Aadhar card, identity card, mobile number, passport size photo and passbook of your bank account. This policy starts from 1st June and is valid till 31st May. The premium of the policy is automatically deducted every year from the account of the insured on the due date.

Do this work before investing in IPO

Those LIC policyholders who wish to avail this opportunity should ensure that their policy is linked to their PAN. The insurance company has asked to link the policy with PAN by February 28. If a policyholder fails to do so, his/her application will be rejected, if they apply under the policyholders’ category.

Also read- The CEO of this private bank gifted his trainer, driver shares worth Rs 3.95 crore

Also read- LIC is the largest holder of Government Securities, Equity and Household Savings – Report