Tuesday, May 03, 2022

LIC IPO Guide - How to Apply IPO to Get the Discount in all Categories

Will LIC IPO be a big hit or a flop, we will witness that in the coming days. As per the current market situation, all the brokerage houses see the market volatility and the threat is will the LIC IPO sucks the liquidity? We have already witnessed the things in earlier IPOs like Reliance Power and PayTM (One97 Communications). Let's discuss further the LIC IPO how to apply the IPO to get the discount, will it make a profit on the listing, or if you should apply for or avoid the IPO.

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    LIC IPO - Biggest IPO in India

    LIC IPO is going to be the biggest ever IPO in India, to raise around Rs 21,000 crore via offer for sale. The government is going to sell its 3.5% stake at a price band of Rs. 902 to 949. The IPO is to open on May 04 and will close on May 09.

    LIC IPO Discount for Policyholders, Employees, and Retail Investors.

    As per the RHP filed by the LIC, the policyholders will get a discount of Rs 60 per share. The employees and the retail investors will get a discount of Rs 45 per share. Will this help LIC IPO to sail through in these categories? The answer will be found soon. If you are a long term investor then it will be ok to go for the subscription on the first day without checking at the discounts but if you are willing to sell the application on a listing day, you might have to see the subscription first on the first day as per our analyst says.

    How to apply LIC IPO in different categories?

    If you are an eligible policyholder, a retailer, and an employee of LIC then you can bid under all these categories. As per the categories discount, you will get the discounts for the application you do either with ASBA or UPI.

    No discount for Policyholders if they are not eligible.

    First, read the instruction in the LIC IPO before going for the application. If you have bought LIC Policy after February 13, 2022, you might not eligible for the policyholder's quota. If you have not linked your LIC Policy with your PAN as per the instruction given by the Life Insurance Corporation of India, you might not able to apply for the policyholder quota. NRI with the LIC Policy will not be eligible for the policyholder's quota.

    Grey market and the listing estimates

    As per the current LIC IPO grey market trends, we might see a listing with a 5 to 10% gain but it might vary as per the subscription numbers and the demand in the market. We have witnessed a good anchor investment of Rs 5627 crores from 123 anchor investors on May 02, 2022. We have already seen the hipe in the grey market for top-level companies but some are not able to make an impact in the subscription and the listing went worst but LIC IPO might be the one we can expect to list on some premium. As the listing gain will not huge but investors will surely witness themselves in one of the biggest IPOs listings. The long-term will be a good bet.

    LIC IPO FAQs

    Should I be able to apply in 3 different categories in LIC IPO?

    Yes, You can apply in the policyholder's category, retail category, and employee category if you fall under all 3.

    Should I get a discount on policyholders, employees, or retail quota?

    If you apply to the policyholder's quota, you will get Rs.60 discount per equity share. If you apply for employee and retail quota you will get Rs.45 discount per equity share. The discount will be automatically counted at the time of application. If you apply in all 3 categories you will get a discount in each category as offered.

    How to Apply the LIC IPO?

    You can apply LIC IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form.

    How to Apply the LIC IPO through Zerodha?

    Log in to Console in Zerodha Website or in Application. Go to Portfolio and Click on IPO. You will see the IPO Name "LIC". Click on Bid Button. Enter your UPI ID, Quantity and Price. Submit IPO Application Form. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Zerodha.

    How to Apply the LIC IPO through Upstox?

    Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name "LIC". Click on Bid Button. Confirm your application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox.

    How to Apply the LIC IPO through Paytm Money?

    Log in to Paytm Money Application with your credentials. Select the IPO. You will see the IPO Name "LIC". Click on Bid Button. Confirm your application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Paytm Money.

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