The LIC initial public offering (IPO) opened for subscription on May 4 and will close on May 9. The issue will be open for retail investors for bidding on Saturday, May 7, as well. LIC's shares will be listed on both the NSE and the BSE, likely on May 17.
According to the LIC management, there is an employee reservation of 1.58 crore shares while 2.21 crore shares are reserved for policyholders. Retail and employees will get Rs 45 discount, while policyholders will get Rs 60 discount.
The price range for the LIC IPO is Rs 902 to Rs 949 per share, with the government selling 22,13,74,920 shares for a total of 21,000 crores.
According to the Axis Bank website, “As LIC is a household name and enjoys a dominant market share (with over 60% in terms of premium) in the Indian insurance sector, its IPO is likely to get a good response from a wide range of investors––retail, HNI, and institutional.”
Under the policyholder category, policyholders who have linked their PAN to their LIC policies, along with demat in their name would be eligible to participate in the IPO.
LIC IPO date details
Bidding starts: 04 May ‘22
Bidding ends: 09 May ‘22
Allotment finalisation*: 12 May ‘22
Refund initiation*: 13 May ‘22
Demat transfer: 16 May ‘22
Listing: 17 May ‘22
If you are an LIC policyholder, here is how you can apply for the IPO.
How to subscribe to LIC IPO through bank
Step 1: Log into your net banking account.
Step 2: under investment, option click on IPO/e-IPO
Step 3: complete the registration process by entering required details
Step 4: Choose the LIC IPO option to invest, enter the number of shares and the bid price.
Step 5: Click the “Submit or Apply now” option to place your order.
Steps may vary depending on the bank, however note that once you enter the amount, it will blocked until the bid is finalized. All investors whose bids
How policyholders can buy LIC IPO through demat account
Step 1: Login to your demat account
Step 2: Click on the IPO section from the menu
Step 3: Select the LIC IPO tab. Look for the category of policyholders. Fill in your information, place a bid, and then click the submit button.
Step 4: Accept the mandate from the participating bank
Step 5: Select 'apply now' from the menu. Then, to buy LIC IPO shares at discounted rates, complete the payment option by using UPI or any other online payment mechanism.
Reserve Bank of India (RBI) has said that all ASBA-designated bank branches will remain open for public on Sunday to facilitate processing of applications for LIC's initial public offering. The Government of India, in order to facilitate bidding for LIC IPO, has requested that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday), RBI said in a statement on Wednesday.
"The matter has been examined and it has been decided that banks may keep all their ASBA designated branches open on May 8, 2022 (Sunday) for the above purpose," it said.
Generally, ASBA is the mechanism through which investors apply for shares in a public issue.
Source Name:-Economic Times