The long-awaited initial public offering (IPO) of the
Life Insurance Corporation of India (LIC) is all set to hit the primary market
next month. LIC IPO will open on May 4 and close on May 9. The price band for
the issue is fixed at Rs 902-949 per share, at face value of Rs 10 each.
Policyholders will get a discount of Rs 60 per share on the issue price, and
10% of the portion is reserved for them. Retail investors and employees will
get a discount of Rs 45 per share. The employee reservation portion will be 5%
of the post-offer equity share capital.
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More than 9.88 crore shares are reserved for Qualified
Institutional Buyers (QIBs) and more than 2.96 crore shares for
non-institutional buyers. Investors can bid for a minimum of 15 equity shares
and in multiples of 15 equity shares thereafter.
Normal
Investor: Normal investors are eligible to apply in the Qualified
Institutional Buyers (QIB) category and the retail portion. The portion for the
Net Offer (including the Anchor Investor Portion) will not be more than 50% of
the net offer. The retail portion cannot be less than 35% of the net offer. The
maximum bid for a retail investor cannot exceed the Rs 2 lakh limit.
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LIC
Policyholder: Policyholders with one or more LIC policies
can apply for the IPO under Policyholder reserved portion. Policyholders must
ensure that their Permanent Account Number (PAN) details are updated in the
policy records of the Corporation at the earliest. Eligible policyholders will
get a discount of Rs 60 per share on the issue price of Rs 902-949. The maximum
bid placed under this category must not exceed Rs 2 lakh.
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LIC
Employees: Employees can apply under the “Employee Reservation
Portion”. The reservation for eligible employees must not be more than 5% of
the total issue. The maximum bidding under this segment must not exceed the Rs
2 lakh limit.
Here
is how you can apply for the IPO:
1. First, log in to your online net-banking account. You
will be directed to their home page subsequently.
2. Go to the investments section and click on the IPO/e-IPO
option.
3. Fill in the depository details and bank account details.
Once these details are filled in, the verification process will be completed.
4. After verification is completed, click on the ‘Invest in
IPO’ option.
5. Click on the LIC IPO and enter the number of shares and
the ‘bid price’.
6. Carefully read all the “Terms and Conditions” of the
bidding before placing any bid.
7. Place the order by clicking on “Apply Now”.
8. At the bank, the application amount will remain blocked
till completion based on the allotment. The account will be debited after the
allotment of the shares.
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Steps
to check share allotment status:
1. Login to the
https://www.bseindia.com/investors/appli_check.aspx
2. Choose the issue type
3. Enter issue name, application number and PAN details
4. Finally, click on search
The allotment of shares to the Demat account of bidders
will happen by May 16, after which LIC would commence trading of equity shares
in the stock exchanges and list “on or about May 17”.
