IPO IPO: The IPO (IPO) of the Life Insurance Corporation of India (LIC) has received a strong response on Day 1, especially from policyholders and employees of the company. The LIC IPO, which will be open until May 9, saw a 67 percent enrollment rate on Day 1 of its opening, according to NSE data. The policyholder quota was subscribed 1.99 times, while the employee quota was subscribed 1.17 times. Through the LIC IPO, the government aims to collect a total of Rs 21,000 crore. The price range is set at Rs 902 to Rs 949 per share of shares, with discounts for LIC policyholders, employees and retail investors.
Who can bid on LIC’s IPO?
Anyone who has a demat account and a PAN can bid on the LIC IPO. The company has allocated a whopping 35 percent of its total shares for the retail category, with policyholders getting 10 percent, general retail investors 24.3 percent and employees 0.7 percent of the shares.
While employees and private investors each receive a discount of Rs 45, LIC policyholders are eligible for a discount of Rs 60 per share of shares. It should also be noted that in order to be eligible for the LIC policyholders category, one must link one’s PAN to the LIC policy as of February 28 of this year.
LIC IPO: what is the maximum amount investors can bid?
Investors can bid on a minimum of 15 shares and then in multiples of 15 to subscribe to the LIC IPO. This means you can bid on 15, 30, 45, 60 shares and so on. However, the LIC has set a maximum amount of Rs 2 lakh for retail investors, policyholders and employees.
Therefore, a private investor can invest up to 14 lots in the LIC IPO. Here is the calculation: Rs 904 (that is Rs 949 minus discount from Rs 45) multiplied by 15 (minimum number of shares) brings us to Rs 13,560 (for one lot). So if we multiply Rs 13,560 by 14, this brings us to Rs 1,89,840. If you want to add one more lot, the amount will come to Rs 2,03,400 which is above the limit set by the LIC.
A policyholder can also bid on only 14 lots. Here is the calculation: Rs 889 (that is Rs 949 minus discount from Rs 60) multiplied by 15 (minimum number of shares) equates to Rs 13,335 (for one lot). So if we multiply Rs 13,335 by 14, this brings us to Rs 1,86690. After adding one more lottery ticket, the amount becomes Rs 2.25,000 which is above the limit.
Can an investor use multiple trading accounts?
New. An investor cannot request a LIC IPO with multiple trading accounts if the maximum limit has already been reached. It is declared invalid. However, a private investor can bid for up to Rs 6 lakh in the LIC IPO if he or she qualifies as a policyholder, employee and a general private buyer.
LIC IPO Reserved Quota
About half of the LIC IPO issuance will be reserved for the Qualified Institutional Buyers (QIBs). Of the portion of the QIB, 60 percent is earmarked for anchor investors on a discretionary basis. One-third of the anchor investor’s share will be set aside for domestic mutual funds. About 15 percent will be allocated to Non-Institutional Investors (NII). About 35 percent will be available for retail investors to participate.
How to Buy LIC IPO Shares?
Aside from linking PAN to LIC policy, eligible investors must also have a demat account to purchase LIC IPO shares. You can use online banking apps or custodial platforms like Groww, Zerodha, and Upstox to request the issue.
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