LIC IPO Update: Retail portion subscribed 35%, key things to know

According to the revised DRHP, the government planned to raise an amount of Rs 21,000 crore by selling around 22 crore shares which is equivalent to a 3.5 per cent stake.
LIC IPO

LIC IPO

Photo : iStock
New Delhi: The much-awaited initial public offering of India's largest insurance company, the Life Insurance Corporation of India, opened today. The IPO will open for bidding on May 4, which is today and close on May 9.
LIC IPO is subscribed 36 per cent by 13:12 hours IST, on May 4, the first day of bidding. LIC policyholders portion has been subscribed 1.24 times, employee reserved portion has been subscribed 64 per cent, retail investors portion has been subscribed 35 per cent. Non Institutional investors have subscribed 8 per cent of their portion while qualified institutional buyers bought 6,585 shares against the allotted quota, as of 12:45 PM.
Price band
The price band for the IPO has been fixed at Rs 902-949 per share. Investors can bid for shares in a lot size of 15 shares, and multiples thereof.
Rs 60/share discount for policyholders
LIC has reserved 10 per cent of the issue size for policyholders and 5 per cent for employees. The IPO will have Rs 60 per share discount for its policyholders. LIC has reserved up to 35 per cent of its total IPO size for retail investors.
IPO size
According to the revised DRHP, the government planned to raise an amount of Rs 21,000 crore by selling around 22 crore shares which is equivalent to a 3.5 per cent stake.
Share allotment, listing
Shares will be allotted to successful bidders on May 12, while the refund to unsuccessful bidders will be credited on the same day. Shares will be credited to the demat account by May 16 and the stock will start trading in the secondary market from May 17 onwards.
How to apply for LIC IPO
Step 1: Investors need to log-in online net-banking account.
Step 2: Go to the investment section.
Step 3: Click on the IPO/e-IPO option.
Step 4: Fill in depository details and bank account details.
Step 5: Once verification is completed, click on the 'Invest in IPO' option.
Step 6: Go to LIC IPO & add the number of shares and the ‘bid price’.
Step 7: Read the terms and conditions of the bidding carefully and click on ‘Apply Now.’
When you click 'Apply Now', application money will remain blocked. The account will be debited post allotment of the shares.
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