LIC IPO: Pradhan Mantri Jeevan Jyoti Bima Yojana subscribers eligible for IPO discount? Know truth

LIC has clarified that subscribers of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are not eligible for receiving a discount on the initial public offer (IPO) share.  

New Delhi: Life Insurance Corporation (LIC) of India, on Tuesday (February 22), clarified that subscribers of Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) are not eligible for receiving a discount on the initial public offer (IPO) share of the state-owned insurance giant. 

LIC noted that PMJJBY is a group insurance product and therefore its subscribers are not eligible for receiving IPO shares at a discounted price. Previously, LIC Chairman M R Kumar had noted that PMJJBY subscribers are eligible for the benefits available for policyholders. 

"PMJJBY is part of that and reservation will be there (for the policyholders)," Kumar had said, according to a PTI report. However, LIC has now clarified in the statement that his statement was "inadvertently mentioned". 

PMJJBY was launched in 2015. The scheme offers a renewable one-year life cover of Rs 2 lakh to all savings bank account holders in the age group of 18-50 years, covering death due to any reason, for a premium of Rs 330 per annum per subscriber. Currently, the PMJJBY is offered or administered through LIC. 

As per the Draft Red Herring Prospectus document filed last week with SEBI, LIC noted that the maximum bid amount under the Policyholder Reservation Portion by an eligible policyholder would not exceed Rs 2,00,000 (net of policyholder discount). Also Read: NSE, BSE to introduce T+1 stock settlement from Feb 25: All you need to know