How to apply for LIC IPO

LIC IPO Share Allotment: After the initial public offering (IPO) of LIC ended for subscription on Monday, all eyes will be on the share allotment process. The LIC IPO has garnered a healthy response from investors as the offer has subscribed 2.95 times, receiving bids for 47.83 crore equity shares against LIC IPO size of 16.2 crore equity shares in total, as the six-day long subscription came to an end. The portion set aside for policyholders has been subscribed 6.11 times, employees bid 4.39 times the allotted quota, and retail investors 1.99 times, while the reserved portion of qualified institutional buyers have booked 2.83 times and that of non-institutional investors 2.91 times. Shares of LIC will be listed on BSE and NSE on May 17. The share allotment of LIC may be finalised on May 12. For LIC IPO applicants in retail, policyholder, and employee category, it would be interesting for them to know how allotment of shares will be done for various categories. As per the information available on Zerodha, the basis of share allotment will be done on draw of lots for retail category applicants whereas share allotment for policyholders and employee category applicants will be done on a proportionate basis. Here is what draw of lots and proportionate basis of allotment mean, in retail category, share allotment will be done on the basis of draw of lots which means allottees will get lots through allotment or a minimum of 15 LIC shares if their application gets through the lucky draw. however, in the case of the policyholders and employees category, all applicants will be given at least some share(s) on a proportionate basis which means here share allotment won’t be done on the basis of lots. So, one should apply as much of lots as one can if it falls under the category of LIC policyholder and employees category. By doing this, they will be able to enhance their chances of getting more LIC shares. To clarify on what does this draw of lots and proportionate basis of allotment mean, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "In retail category, share allotment will be done on the basis of draw of lots that means allottees will get lots through allotment or a minimum of 15 LIC shares if their application gets through the lucky draw. however, in the case of policyholders and employees category, all applicants will be given at least some share(s) on the proportionate basis that means here share allotment won't be done on the basis of lots. So, one should apply as much of lots as one can if it falls under the category of LIC policyholder and employees category. by doing this, they will be able to enhance their chances of getting more LIC shares." So, it's advisable for the retail investors to apply for maximum lots in reserved category i.e. LIC policyholders or employee category if they qualify for thInvest LOGIN How To Subscribe To The LIC IPO In 5 Simple Steps The initial public offering (IPO) of Life Insurance Corporation of India (LIC) will open for subscription today. The ₹21,000-crore worth LIC IPO is slated to be the largest IPO ever in the Indian markets. The government will sell a 3.5% stake or 22.13 crore shares in the insurance behemoth via the IPO. The LIC IPO will open on May 4, 2022, and close on May 9, 2022, while the price band has been set at ₹902-949 per share. The IPO values LIC at ₹6.07 lakh crore. LIC has reserved 2.21 crore shares, or 10%, for policyholders and 15.81 lakh shares, or 0.7%, for its employees in the IPO. For the purchase of shares individuals need to buy a minimum of 1 ‘lot’, and each lot comprises of 15 shares. Retail-individual investors can apply for up to 14 lots in this IPO. Any person, whether a LIC policyholder or non-policyholder, can apply for LIC IPO online in a few easy steps. Here’s how to apply for LIC IPO through online banking: In its DRHP, LIC has said that all potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (ASBA) process providing details of their respective ASBA Accounts, and UPI ID in case of Retail Individual Bidders (RIBs), Eligible Employee(s) and Eligible Policyholder(s) Bidding using the UPI Mechanism. There are two ways to apply for the LIC IPO. One is applying via internet banking and the other option is via UPI. You would need to log in to your bank account via your bank’s NetBanking facility. For HDFC Bank customers, you can do so by clicking here. Once logged in, go to the ‘investment’ section and click on the IPO/e-IPO section. You now need to fill in the depository details and the bank account details. After the completion of the verification process, select the ‘Invest in IPO’ option. Choose the ‘LIC IPO’ and enter details such as bid price and the number of shares. Finally, you will have to select ‘Apply now’ to finalise the bid and confirm the order. LIC policyholders and employees who wish to apply for LIC IPO will get special discounts. LIC Policyholders will get a ₹60 discount, while employees and retail individuals who want to buy shares in the LIC IPO will get a discount of ₹45. However, LIC policyholders will have to assure that their PAN Card is linked to the policy to avail their discount. LIC policyholders can apply for LIC IPO under the separate ‘LIC Policyholders’ category, while other retail individuals can apply under the ‘LIC - All Investors’ category. People covered under group insurance policies will not be eligible under the policyholder quota. Application process for LIC Policyholders: Check if your PAN card is linked to your insurance policy as of February 28, 2022. Ensure the PAN card linked with your Demat Account is also linked with your LIC Policy. Visit your Depository Participant’s (DP) online platform and select the IPO section Click on the LIC IPO tab. Select the Policyholder category. Enter the details, place the bid and click the Submit option You will receive a mandate from the bank. Accept this mandate to complete the application process Click on the ‘Apply Now’ button. After this, complete the payment option through UPI or any other online payment option to buy LIC IPO shares at discounted rates. The LIC policyholders quota is a unique and first-of-its-kind offering. As per regulations, the maximum bid amount under retail, policyholder and employee quotas cannot exceed ₹2 lakh. However, if you are a retail investor, a policyholder and an employee of LIC, you can bid under all three categories separately. Your effective aggregate limit will be ₹6 lakh. After the application process, the basis of allotment of LIC shares will be finalised on May 12, 2022. Investors applying for the LIC IPO can check their allotment status on the BSE website or the registrar’s website. Investors whose application is accepted will receive the LIC shares in their Demat Account on May 16, 2022 while those whose application is rejected will get the refund on May 13, 2022. LIC shares are expected to be listed on exchanges on May 17, 2022. If you don’t have your Demat Account yet, or are wondering how to get started, opening a Demat Account with HDFC Bank is a great way for you to begin your investment journey. Click here to open your Demat Account now! For existing customers of HDFC Bank, you can access the IPO easily via the HDFC Securities mobile phone application in 3 simple steps: Download the HDFC Securities mobile application here for Android users, and here for App store users. Login via your Demat Account Head to the IPO section on the app, select the company you wish to invest in, and then place your bid via the app. *Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice before you take any/refrain from any actionese categories. The government is diluting its stake in LIC through this upcoming IPO. It is an invitation for the public to participate in its ownership. Post listing, the company will come under the regulations of SEBI. LIC IPO on its first day of subscription received a good response. Despite the stock market falling after the Reserve Bank of India (RBI) hiked interest rates, the mega initial public offering (IPO) of Life Insurance Corporation (LIC) had a strong reaction from investors, with 67 per cent of the shares sold out on the first day of bidding on Wednesday.