One of the biggest IPO’ s that the investors have been looking for from a long time is the LIC IPO which goes live today. The IPO will remain open till 9th May 2022. Though the IPO is already 28% booked and has a lot of eyes on it. The grey market premium for the LIC is now at 85 and is up by 16 points on the previous day.
Size of the IPO
The Government of India intends to raise a total of Rs 21,008.48 crore through the public offering, making it the country’s largest IPO to date.
IPO lot size and limit
Each IPO lot will comprise 15 LIC shares, and applicants will be able to submit their applications in lots of 15. An individual can apply for as few as one lot or as many as 14 lots or 210 shares. As a result, Rs14,235 is the minimum amount required to apply for the IPO (i.e. 949 x 15). The maximum bid amount for retail investors, policyholders, and LIC employees has been fixed at Rs 2 lakh.
The LIC IPO price range is 902-949 per equity share.
LIC policyholders would receive a 60 percent discount on equity shares, while retail investors and workers will receive a 45 percent discount.
- Investors can bid for a minimum of 15 shares (one lot) for Rs 14,235 at the issue’s high end.
- The LIC IPO will open for subscribers on Saturday, May 7, in an unusual move to entice more investors. The shares will be listed on stock exchanges on May 17.
- The government intends to raise Rs 21,000 crore by dissolving a 3.5 percent stake in LIC.
- An IPO would be the most valuable in the history of the Indian stock market. Paytm’s IPO last year, which raised 18,300 crores, and Coal India’s IPO in 2010, which raised 15,200 crores, had previously seen the highest fundraises.
- The LIC has notified policyholders about the stock sale via SMS and other methods.
How will LIC shares be distributed?
Share allocation in the retail category will be based on a lot draw, said AvinashGorakshkar, Head of Research at Profitmart Securities. This means that if their application is successful in the lucky draw, allottees will get lots through allotment or a minimum of 15 LIC shares. In the case of policyholders and workers, however, all applicants will be allotted at least some shares proportionately, meaning no lots would be used to distribute shares. If you are a LIC insured or employee, you should apply to as many lots as feasible. By doing so, they will increase their chances of landing a job.
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