At a time when the government is working out the finer details for the launch of the public issue of Life Insurance Corporation of India (LIC), policyholders are preparing to participate in the mega initial public offering (IPO). The government may offer a discount to policyholders in the upcoming IPO, a top official said.

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“We have made provisions under the LIC Act that up to 10 percent of the issue can be offered to policyholders at some discount on competitive basis," Mint quoted the Department of Investment and Public Asset Management (Dipam) secretary Tuhin Kanta Pandey as saying.

A part of the IPO will be reserved for employees too, he said, adding that the government is likely to file the draft red herring prospectus or offer document this week.

Earlier, LIC had made a public announcement asking policyholders to update their Permanent Account Number (PAN) details and open demat accounts to participate in the public issue.

"In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the corporation's records,” LIC said in an advertisement in all leading newspapers in December last year.

Policyholders will only be able to participate in any public offering if they have a valid demat account. Those who do not have a demat account have been advised by LIC to get one at their own cost.

"You would incur costs towards opening of a demat account and or PAN issuance and maintaining the demat account or other ancillary costs," the LIC ad said.

To update PAN details with the LIC records, policyholders will have to log in to https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus.

They will have to key in the policy number, date of birth and PAN details into the system.

After updating the details, the policyholder will have to check the captcha and finally press submit.

With this, the policyholders can check the status of their LIC policy and PAN link.

Meanwhile, experts are expecting oversubscription in the LIC IPO.

"Oversubscription is expected. So we recommend applying through 2-3 different demat accounts so that the chance is high," Mint quoted Manoj Dalmia, founder of Proficient Equities Limited, as saying.

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(Edited by : Thomas Abraham)