LIC IPO Opens Today: Should You Subscribe? Here’s What You Need To Look Out For

Mumbai: LIC’s long-awaited initial public offering is set to today with a price band of  Rs 902-949. It is expected to be the largest-ever IPO in the country. The LIC IPO was opened to anchor investors on May 2. Notably, the government, which owns the insurance giant, plans to sell a 3.5 per cent stake instead of the five per cent as listed in the previous Draft Red Herring Prospectus (DRHP).  According to reports, the government is expecting to raise around Rs. 21,000 crore by selling a part of its stake in India’s largest and most recognised insurer. If the government manages to meet its target, the IPO will surpass Paytm’s initial public offering by a huge margin. Paytm’s IPO, the largest so far, raised Rs. 18,300 crore in 2021. LIC has offered a discount of Rs. 60 to its policyholders and a discount of Rs. 40 to its employees and retail investors.Also Read – LIC IPO Opens For Subscription Today: Who Can Buy Share And Who Cannot? 10 Things to Know

LIC IPO, India’s Biggest, Opens Today: Live Updates

How to Apply for LIC IPO?

Investors and LIC policyholders need to have a demat account to apply for the LIC IPO. They can use different brokerage apps like Groww, Upstox and Zerodha or use the platform of any other depository participant (DP) to book the issue. Also Read – LIC IPO To Open For Subscription Tomorrow; GMP, Price, Key Details You Need To Know

For policyholders: If you are a LIC policyholder, you will have to first link your both policy and Demat account with your Permanent Account Number (PAN). Also Read – LIC IPO Opens Next Week: Here’s How SBI Customers Can Invest Through YONO App

LIC IPO: Step-by-step guide to Apply

1. Log in to the relevant portal after opening the demat account
2. Once done, visit your profile on the depository participant’s platform. While navigation process may vary from platform to platform, you would want to look at the IPO section here
3. Now, select LIC IPO tab and select the category you want to bid for — in this case LIC Policyholder. Now, fill in your depository and bank account details
4. Once done, enter a bid price and the number of shares you want to apply for
5. Go through the terms and conditions carefully, and click on the submit/ apply option
6. After this, you will receive a mandate from the participating bank on your UPI app which you need to confirm. Now, complete the payment option by using UPI or any other online payment option to buy LIC IPO shares

LIC IPO: 10 Tings to Know About Subscription

1. For the LIC IPO, the total value is set at Rs 21,000 crore, which makes it the country’s biggest public issue till date.
2. Nearly 15.81 lakh shares have been reserved for employees and around 2.21 crore shares for policyholders.
3. Interested subscribers can apply in lots, where one LIC IPO lot comprises 15 LIC shares.
4. One applicant can apply for a minimum of one and a maximum of 14 lots.
5. The minimum amount needed to apply for the LIC IPO is Rs 14,235.
6. The LIC IPO price band has been fixed at Rs 902 to Rs 949 per equity share. However, policyholders and LIC employees applying for the public issue will get a Rs 60 and Rs 45 discount, respectively.
7. Initially, the LIC IPO was planned for launch before March 31 but it was postponed due to poor market conditions due to Russia-Ukraine war.
8. The LIC shares are likely to be listed on BSE and NSE on May 17.
9. Your successful shares will be credited to your demat account by May 16.
10. In case you don’t get allotted your desired number of shares, your money will be refunded by May 13.

About LIC

LIC was formed by merging and nationalizing as many as 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer’s group product portfolio comprises 11 group products.

As of December 2021, LIC had a market share of 61.6 per cent in terms of premiums or Gross Written Premium (GWP), 61.4 per cent in terms of new business premium, 71.8 per cent in terms of the number of individual policies issued, and 88.8 per cent in terms of the number of group policies issued.