LIC IPO: Today is the last day to register for the LIC IPO, which has received a huge response from investors so far. The initial public offering (IPO) of insurance giant Life Insurance Corporation (LIC) has received an overwhelming response from investors, especially in the LIC policyholders, employees and retail categories. May 9, which is today, is the last date to apply for the country’s largest IPO, which had already been subscribed 1.79 times until May 8, the fifth day of bidding. The government wants to lose 3.5 percent of its stake in the company and bring in Rs 21,000 crore through the IPO to meet its divestment targets.
With such an overwhelming response – especially among LIC policyholders who subscribed 5.04 times their share, employees who bid for 3.79 times their allotted quota and retail investors who subscribed 1.59 times their share – this means that the chances of winning the bids on LIC IPO shares are diminishing. Here’s How To Increase Your LIC IPO Assignment Opportunities.
LIC IPO: HOW TO INCREASE OPPORTUNITIES?
i) For starters, if you are a LIC policyholder you can bid on different quotas. The maximum limit to bid on the LIC IPO for the retail investor category is Rs 2 lakhs which translates to a maximum of 14 lots per investor. However, there is a way to increase that. If you are a LIC policyholder who falls in the retail category, you can apply for both categories separately and bid for Rs 2 lakh worth of shares. In addition, if you are a LIC employee, policyholder and private investor, you can bid for Rs 6 lakh worth of the lots. Investing more means your chances of LIC IPO assignment are higher.
ii) Another way to increase your chances is to apply for multiple trading accounts for the LIC IPO. If the IPO has been subscribed twice and you have invested from three different accounts to meet your quota, chances are you will definitely get the LIC IPO allocation from one account.
iii) For an oversubscribed IPO such as the LIC IPO, investors must go for minimum bids. Under the SEBI rules, retail investors get the allotment shares in each bid from minimum to maximum. So, market observers recommend that you stick with it that way.
iv) Market analysts also recommend applying for different application numbers for oversubscribed IPOs such as the LIC IPO. If you are bidding with the same application number from another trading account, chances are you will not be allocated for the LIC IPO.
HOW TO BUY LIC IPO SHARES
You must have a demat account with a custodial platform to purchase LIC IPO shares. A demat account can be opened through platforms such as Groww, Upstox, Zerodha and through online banking platforms such as SBI, ICICI, and SBI among other custodial platforms.
Read all the latest news, breaking news and IPL 2022 Live Updates here.