LIC IPO for policyholder: How can minor policyholders apply for issue? Are they eligible for discount? Anil Singhvi explains!

LIC IPO for policy holder: As the much awaited public issue of the Life Insurance Corporation of India (LIC) opens on Wednesday, question from Zee Business viewers have been pouring in regarding the LIC IPO. Zee Business Managing Editor Anil Singhvi has replied to many such queries in this special show called ‘LIC IPO ki Pathshala’. This is what he said about minor investors willing to invest in the IPO. #LICIPOWithZee  

What happens if a minor who is a policyholder wants to apply for the LIC IPO?

It is quite likely that the parents would be paying premium of the LIC policy. Now the question is, who makes the application for the issue?

The Market Guru said that one must understand a very simple thing that even a minor can hold a demat account in the stock market. The guardians are parents who usually operate the demat accounts. If a policy has been taken in the name of a minor, then an application can be made in policyholder quota, the Managing Editor said.

An application can be made in the name of minors, provided they have a demat account, he further said.

So if the minor has an LIC policy and has a demat account. The payment can be made either from the account of the minor or from parents as well.

LIC IPO for policy holder: Want to know most amazing thing about this issue? Zee Business Managing Editor Anil Singhvi reveals this!

However, it is not the case that parents will get a discount if the policy is in the name of a minor. Even minor can avail the discounts in LIC IPO.     

Only one application can be made irrespective of the number of policies one holds, Singhvi said.

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The Managing Editor said that the most beautiful thing about this IPO is that it is giving discount to its policyholders at the time of application – first IPO to do it, he added. So the policyholders will have to invest less because of the discounted amount.

The usual practice in IPOs has been that even if there is a discount, the investors are required to pay in full and the discount is given later.

LIC has done wonderful work by giving discount at the time of application, the Market Guru said.

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LIC IPO से जुडे़ सारे सवालों के जवाब

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The market guru also cleared confusion regarding who will be considered as a retail investor in the mega IPO and at what price should one buy the shares and what about the discount?

Any investor who puts an application up to Rs 2 lakh, will be considered as a retail investor, Singhvi said. The category remains same as in the case of other IPOs, he added.

About LIC 

Incorporated on September 1, 1956, Life Insurance Corporation of India Ltd (LIC), was formed by merging and nationalizing 245 private life insurance companies in India. LIC has been providing life insurance in India for 65 years and is the largest life insurer in India. The brand LIC is recognised as the 3rd strongest and 10th most valuable global insurance brand according to Brand Finance. In addition to Indian operations, LIC has global presence with branches in Fiji, Mauritius, UK, etc.