Can LIC Policyholders Apply for More Than One Category in the LIC IPO? Which bid will be the highest
Life Insurance Corporation (LIC) of India's current subscription process for its maiden public listing shows that everyone seems to want a piece of the insurance giant (IPO). On May 7, the fourth day of bidding, the largest life insurance firm in the nation, LIC, received bids for 26.83 crore equity shares, or 1.66 times the IPO size of 16.2 crore shares. Employees, policyholders, and retail investors all received more than their fair share of subscriptions (1.46 times, 3.54 times, and 4.67 times respectively), whereas qualified institutional purchasers purchased 67% of the authorized quota and non-institutional investors purchased 10%8%. Through an offer for sale of Life Insurance Corporation of India equity shares, the Government of India is selling 3.5% or 22.13 crore shares. On May 2, the anchor book had already raised more than Rs 5,600 crore.
The LIC IPO's registration period began on May 4 and will end on May 9. On Saturday, May 7and Sunday, May 8, retail investors will be able to place bids on the offer. The company's shares will probably go public on May 17 on both the NSE and the BSE. The price range for the IPO has been set at 902–949 rupees per share. Investors may place bids as early as Saturday, May 7, and the offer closes on Monday, May 9. The number of equity shares in the bid lot is 15, plus any multiples of that.
Who can Bid for LIC IPO?
The LIC IPO is open to everyone with a Demat account and a PAN. Up to 35% of the total shares have been allocated by the company to the retail category, with policyholders receiving 10%, general retail investors receiving 24.3%, and employees receiving 0.7%.
Employees and retail investors each receive a discount of Rs 45, but holders of LIC policies are entitled to a discount of Rs 60 per equity share. It should be mentioned that starting, Dematon February 28 of this year, one must link their PAN to LIC insurance to be eligible for the LIC policyholder category.
Are You An LIC Policyholder Who Doesn’t have PAN Linked to Policy?
Yes, policyholders can still apply even if they don't meet the aforementioned standards. You won't be qualified under the part set aside for policyholders, though. You must apply for the quota for retail investors.
LIC IPO: What is the Maximum Amount Policyholders Can Bid For?
To subscribe to the LIC IPO, investors can bid for a minimum of 15 shares and additional shares in multiples of 15. As a result, you have the option of bidding for 15, 30, 45, 60, and so forth. The LIC has set a ceiling of Rs 2 lakh, nevertheless, for workers, policyholders, and retail investors.
Only 14 lots will be up for bid by policyholders. This calculation is provided: The minimum number of shares is 15 and the sum of Rs 889 (which is Rs 949 less the discount of Rs 60) and Rs 15,335 equals Rs 13,335 (for one lot). Thus, multiplying Rs 13,335 by 14 results in Rs 1,86,690. After another lot is added, the total rises to Rs. 2,25,000, which is too much.
Can an Investor Use Multiple Trading Accounts?
If the maximum limit has already been achieved, an investor cannot apply for the LIC IPO using multiple trading accounts. It will cease to be valid. However, if a retail investor meets the requirements of being a policyholder, an employee, and a general retail buyer, he or she may submit a bid of up to Rs 6 lakh in the LIC IPO.
Can a policyholder apply more than 1 one application in LIC IPO?
"Policyholders who have linked their pan number with the LIC policy will be entitled to the policyholder discount," informed Yash Gupta, Equity Research Analyst, Angel One Ltd. An investor who holds multiple LIC policies may submit a single application under the policyholder category. For retail investors to be eligible for both the policyholder discount and the retail investor discount, a retail investor who is also a policyholder can submit two IPO applications, one in each category.
Can You Bid For The LIC IPO Under Multiple Quotas?
The majority of individuals may only be able to apply for the LIC IPO under one of the categories, but if you're affiliated with LIC in any way—as an employee, a policyholder, or both—you can, if you'd like, apply to three other categories. In other words, you are permitted to submit a bid under the portions designated for employees, policyholders, and retail or non-institutional investors (one of the two). Be aware that your applications will be rejected if you submit them for both the retail and non-institutional portions since they will be viewed as multiple bids.