Why is LIC IPO Considered as Biggest Ever IPO in India?

LIC is more like a household name in India, and it has been like that for decades together. After two long years of preparation, the Government has approached SEBI to sell a 5% stake in Life Insurance Corporation via Initial Public Offering. Oh, and also – it has the motive of collecting 60,000 crores through this. We all know LIC – whether you are from Gen Z or gen Y, it has been around for all that while. 

As old is considered gold – LIC has aged like fine wine. Here we are at the moment when this huge corporation goes public, which also means – investors are ready to be part shareholders.

Every investor out there is probably pacing the floor in excitement – awaiting this blockbuster listing. So, what does it mean to the investors when this corporation does go public?

What does LIC Listing mean to the Different Types of Investors?

The Life Insurance Corporation of India IPO does mean quite a lot to the investors, and here are some factors you would need to know.

Important LIC IPO Details

  1. The LIC Policy Holder can Claim 10% 

Are you a LIC holder? Then, this is for you! A LIC policyholder can claim a 10% quota reserved for them only when their LIC policy and PAN Card are linked, and you can’t forget this. You can check your PAN card and LIC policy linking status just online; all you have to do is log in to the direct LIC link. It is not that hard.

If by any chance, your PAN and your policy aren’t linked – then you would need to get this done as soon as possible. And even this can be done online, without any worries.

  1. Not all of the Policy Holders can Apply

Now, if you bought your policy on or before the 13th of February 2022 – only then would you be allowed to apply.

  1. 35% of this IPO is Reserved

Now, do not panic or get shocked, but – 35% of the LIC IPO listing is reserved for the retail investor. What is a retail investor, though? Well, the retail investor is neither an employee nor the LIC, nor are they the LIC policyholders, and they would be eligible to apply here. If you aren’t a policyholder or an employee of this corporation – you know this reservation is for you. So, yay! You can be part of this listing effortlessly.

  1. Are you an Employee or Policy Holder?

Either of these – you know you are eligible to apply.

  1. Are you a Retail Investor? What is your Maximum Investment?

You need to keep in mind that – a retail investor can invest only up to Rs. 2 lakhs in the LIC IPO. You know this gives everyone an equal opportunity.

  1. Are you a LIC Policy Holder and an Employee? What is your Maximum Investment?

If you are a LIC policyholder, you also have an upper threshold like that of a Retail investor. So, you just remember that you also only invest a maximum of Rs. 2 lakhs. And as an added note, the LIC employee, who is also the employee, can only invest a maximum of Rs. 2 lakhs.

  1. What is the Upper Investment Threshold for a Policy Holder who is Not an Employee?

The maximum investment for a LIC policyholder who isn’t employed in the corporation is Rs. 4 lakhs. Now, you do not have to think so much wondering how this was possible; it is explained right here. 

The policyholder will be able to invest Rs. 2 lakhs under his or her category. Also, this policyholder who is not an employee will come under the category of a retail investor. Therefore, the retail investor has a maximum limit to invest of Rs. 2 lakhs. So, adding both of these categories’ maximum investment limit is Rs. 4 lakhs as a whole.

  1. The Maximum Investment for an employee, policyholder, and a retail investor

Well, the maximum investment that is feasible for a LIC employee on this PO is Rs. 6 lakhs. Provided there is a LIC policy (which is Rs. 2 lakhs), LIC the LIC employee category (which is Rs. lakhs), and finally the policyholder category (which is Rs. 2 lakhs). All of this added together makes up to Rs. 6 lakhs.

  1. Claiming the Benefit Quota

When it is a joint account, the LIC policyholder would be able to claim quota benefit, but only when it is the primary Demat account holder. So, if you are a policyholder, then it is suggested to apply under reserved quota only when you are the primary Demat account holder, or your application would be rejected.

  1. What to do if you are a Joint Policy Holder?

When you are policyholders of a joint account, then both of you can apply under the policyholder’s category – but given that both of them have a separate Demat Account.

Well, LIC is the country’s biggest life insurer with over 286 million policies, 115,000 employees, over 1.34 million individual agents, and over 200 branches all over the country. 

You did know that the Government was holding 100% of LIC, but now you could be part of the 5% public that holds shares of it too. Also, you need to know that this is a 100% offer for sale, and the corporation will not get any proceeds from it.


Whether you are the employee, the policyholder, or the retail investor – you could always invest in the LIC IPO. As LIC’s dominance is unparalleled worldwide – there is no better life insurance player that you would want to invest in.

You may be interested in: PRE-IPO Investing: How It Can Supercharge Your Returns