India's largest-IPO, the Life Insurance Corporation's IPO will open for subscription on May 4. It will remain open for bidders till May 9.
The price band of the IPO has been fixed at Rs 902 to Rs 949 per equity share.
At the upper end of the price band the government will garner around Rs 21,000 crore.
The retail investors and eligible employees will get a discount of Rs 45 per equity share and policyholders will get a discount of Rs 60 per equity share.
With this IPO, which is through an offer-for-sale (OFS) route, the government is looking to divest its 3.5 percent stake in the state-run insurer by selling 22.13 crore shares.
LIC remained unlisted for long time
DIPAM Secretary Tuhin Kanta Pandey termed the IPO the 'greatest Indian story'.
He said, LIC has been a financial institution for a long, long time. It continued to remain unlisted for such a long time. LIC has always been an investor. Today LIC is coming before investors to get invested in. It is a great Indian story."
Pandey said the size of the LIC IPO is "optimal" in current market conditions. The government had originally planned to sell a 5 percent stake in the company.
Policyholders, employees please note
Around 15.81 lakh shares have been reserved for employees and around 2.21 crore shares for policyholders.
LIC had said earlier, "Policyholders having one or more LIC policies as on date of DRHP (draft red herring prospectus) and bid/offer, opening date, and are residents of India will be eligible to apply under Policyholder Reservation Portion".
LIC employees who are eligible to apply for the IPO can do so under the ‘employee reservation'. Bidding under this scheme cannot exceed Rs 2 lakh or five percent of the total offer. Others can apply in the 'qualified institutional buyers' segment and retail portion.
Over 9.88 crore shares have been reserved for QIBs and over 2.96 crore for non-institutional buyers.
Who can apply for LIC IPO
Only Indian residents, who are LIC policyholders, are eligible to apply.
NRI policyholders and other policyholders are not eligible to apply for the Reservation Portion
People with lapsed LIC policies can also bid under the reserved portion.
Ensure these details before applying
A demat account is a must before applying for the LIC IPO
PAN card details must be updated in the policy records
According to the draft red herring prospectusof the company filed before SEBI in February, Policyholders who have not updated their PAN details before 28 February this year, will not be eligible to apply for the IPO
All policies, except group policies are eligible to apply under the Reservation Portion
People with lapsed LIC policies can also bid under the reserved portion.
How to apply for LIC IPO online
Log-in to your online net-banking account
Go to the investments section and click on the IPO/e-IPO option
Fill depository details and bank account details
Once these details are entered, the verification process will be completed
After the verification process, click on "Invest in IPO".
Select the IPO which you would like to apply
Enter the number of shares and the "bid price".
Read the terms and conditions of the bidding
Confirm and place order by clicking on "Apply Now"
The application money will remain blocked in the bank up to the finalisation on the basis of allotment. The account will be debited after the allotment of the shares.
How to check share allotment
To know whether you have been allotted shares, here's what you need to do
Go to https://www.bseindia.com/investors/appli_check.aspx
Select the issue type
Enter issue name, application number, PAN details
Click on search
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