LIC’s IPO opened today, Retail Investors can apply till May 9; Know Complete details

The IPO of Life Insurance Corporation of India (LIC) has opened today, i.e. on May 4. The government is going to sell 3.5% stake in LIC through IPO. There is a plan to raise Rs 21,000 crore from this. If you are also planning to invest money in this, then we are telling you how much and how you can invest in it.

What is the minimum and maximum amount one can invest?

Retail investors can apply for a minimum of one lot i.e. 15 shares. Accordingly, retail investors will have to invest a minimum of Rs 13,560 after a discount of Rs 45. The maximum limit is 14 lots, i.e. 210 shares. Investors can invest a maximum of Rs 1,89,840. Similarly, policyholders can invest a minimum of Rs 13,335 and a maximum of Rs 1,86,690 after a discount of Rs 60. However, policyholders and employees also have an additional benefit.

Is it getting any kind of discount?

LIC has kept a discount of Rs 45 for retail investors. If you apply for one lot of shares on the upper band, then instead of Rs 949 per share, you will have to pay Rs 904 per share. That is, for one lot you will have to pay only Rs 13,560 instead of 14,235.

If you have LIC policy then you will get a discount of 60 rupees. If you apply for one lot of shares in the upper band from the policy holder quota, then you will have to pay Rs 889 per share. That is, for one lot you will have to pay Rs 13,335 instead of 14,235.

Is it necessary to have a demat account?

As per SEBI rules, equity shares of any company are issued only in demat form. Hence anyone, be it policy holders or retail investors, needs to have a demat account.

How to Apply?

You can apply for this both online and offline. If you want to apply online then you can apply for IPO through your demat account or through its app. Here you will see the option of 3 categories.

• Retail
• Policy holder
• Employee

Click on the category you want to apply for. After that fill in the number of lots you want. After this the money of the lot price will be absorbed (blocked) from your account. In such a situation, on May 12, if you get shares in the share allotment, then money will be deducted from your account and on May 16, the shares will come in your demat account. After this, LIC’s stock will be listed in the market on May 17.

On the other hand, if you do not get the shares, then the process of unblocking your money will start from May 13. In such a situation, your money will be unblocked within 1-2 days. On the other hand, if you want to apply offline, then you have to contact the LIC office or the office of your demat account company.

At what price to invest money and discount?

The price band of LIC’s IPO is Rs 904-949. In such a situation, investors should invest money on the higher band Rs 949.