New Delhi. The long wait of investors is now over. From today retail investors will be able to apply in the country’s largest LIC IPO (initial public offering). With the opening of the market in the morning, this IPO also opened for all classes of investors. LIC’s IPO for common investors will be open from May 4 to May 9, whereas, for anchor investors, this IPO was opened 2 days ago. Not only this, the share of anchor investors was fully subscribed on the very first day itself. There are three categories for retail investors in LIC’s IPO. Policy holders, LIC employees and common investors. Many people who are new investors have many doubts and questions in their mind before applying, that how much money they have to invest in applying in this IPO and how many shares they can get on this investment? Let us provide you the information related to all these questions. If you are an LIC insurance holder, then you will get a price discount along with getting reservation in IPO. LIC policy holder will get 10 percent reservation in this IPO. Apart from this, policy holders will also get a discount of Rs 60 per share in the IPO.
The price band of LIC IPO has been kept in the range of Rs 902 to Rs 949 and consists of a lot of 15 shares. If you apply in IPO from Policyholder quota, then according to the upper price band (949-60=889×15= Rs 13,335) i.e. a total of Rs 13,335 will have to be invested. In this way, policyholders will get a total discount of Rs 900 on the application of one lot IPO. At the same time, LIC employees will get a discount of Rs 45 per share on applying in this IPO. That is, according to the upper price band, they will have to pay Rs 13560 on the application of one lot. Retail investors and LIC employees can save up to Rs 675 on applying a lot. But if you are not a LIC policy holder and also not an LIC employee, then according to the upper price band, Rs 14,235 will have to be invested. The issue size of the IPO is Rs 21,000 crore, and around 22.14 crore shares will be sold through the IPO.
While applying for LIC IPO, investors should keep these special things in mind-
While applying for IPO, there are three options available in the retail investor category, it should be chosen correctly.
1. New
2. Policyholder
3. Employee
New
This option is for those people who are neither LIC policy holders, nor LIC employees. If you apply in this category, for one lot IPO, you will have to invest a total of Rs 14,235 according to the upper price band.
Policyholder
This category is for LIC policy holders. On choosing this, you will get 10 percent reservation in LIC IPO. Also, there will be a discount of Rs 60 per share in the IPO for policy holders.
Employee
This option is for LIC employees. LIC employees will get a discount of Rs 45 per share on applying in this IPO.
It is worth noting that through this LIC IPO, the government is going to collect Rs 21 thousand crore by selling its 3.5 percent stake. In this way it is going to prove to be the biggest IPO of India in the history of India. The government has set a target of raising Rs 65,000 crore from disinvestment in the financial year 2022-23.