Pradhan Mantri Jeevan Jyoti Bima Yojana Subscribers Eligible For LIC IPO: LIC Chairman

Pradhan Mantri Jeevan Subscribers to the PMJJBY are also eligible for the quota advantages reserved for Life Insurance Corporation (LIC) customers, according to M R Kumar, chairman of the insurance behemoth.

According to the draught red herring prospectus that LIC recently filed with the markets regulator SEBI, 10% of the total LIC share offer will be allocated for LIC policyholders. There are also rumours concerning discounts. However, the LIC has not yet revealed any plans to provide policyholders discounts in the expected initial public offering (IPO).

“I want to explain that as the programme is sponsored by LIC, PMJJBY policyholders are also eligible to apply in our IPO,” Mr Kumar said in a virtual session with journalists.

The PMJJBY is a government-sponsored insurance programme for people aged 18 to 50 years old. The risk coverage under this policy is for 2 lakh in the event of the insured’s death for any reason. The annual premium is 330. The plan is being offered by the Life Insurance Corporation of India and any other life insurers wanting to offer the product on comparable conditions with the requisite permissions and tie-ups with banks.

Mr Kumar stated that the IPO will be available in the market within the current fiscal year, with a listing likely by the end of March.

“Valuation is still underway, and we cannot forecast how much money LIC will receive by dissolving its 5% ownership,” he said.

The LIC’s IPO is likely to receive regulatory approval by the first week of March, after which an indicative marketing price band would be established, according to the LIC chairman.

Mr Kumar stated that LIC is well-capitalized and does not require any additional capital. “In the future, if there is a need for expansion capital, we will approach not only the government, but all shareholders,” he stated.