LIC IPO : LIC Asks Policyholders To Update PAN Details

Life Insurance Corporation (LIC) which is expected to launch its initial public offering (IPO), has asked policyholders to update their Permanent Account Number (PAN) & open demat accounts in order to participate in the proposed initial public offering (IPO). The insurance major has made it clear that it won’t be able to participate in the IPO subscription without updating the PAN details. The listing of LIC is set to be the country’s biggest ever IPO, with the government aiming to raise up to ₹ 90,000 crore ($12.2 billion) from its stake sale.

Policyholders would be entitled to up to 10% of the LIC IPO issue amount under the proposed strategy.

The IPO is slated to begin accepting subscriptions in the fourth quarter of this fiscal year.

LIC has been advertising that policyholders should update their PAN because it is vital for Know-Your-Customer (KYC) purposes.

“You would have to pay for the opening of a DEMAT account, the issuing of a PAN, and the maintenance of the DEMAT account, as well as other ancillary charges. You would be completely responsible for all such expenses (policyholder). The Corporation would not be responsible for any charges “ The state-owned insurance colossus clarified its position.

How to update PAN card

• Use the website’s link to enter the PAN card information as well as the LIC policies.
• Enter the LIC-registered mobile number.
• The system will send a one-time password (OTP) to the registered phone number, which must be entered in the space provided to update information.

What to do if PAN card details are not available in LIC database

• Go to the LIC’s official website.
• Select Online PAN Registration from the drop-down menu.
• The user must provide an email address, a PAN number, a cell phone number, and LIC policy information.
• The system will prompt you to enter a Captcha code.
• On the PAN-registered mobile number, the user must request an OTP.
• Once the OTP has been added, the form must be submitted to complete the registration process.

In July 2021, the Union Cabinet approved the disinvestment of LIC, the country’s largest insurer, and a commission led by the finance minister was given authority to determine the amount of share dilution.

Through the Finance Act 2022, the government has already made the necessary legal changes to the LIC Act in preparation for the anticipated IPO.