LIC IPO Live Updates: Policyholders’ Portion Fully Subscribed. Here’s All You Need To Know

LIC the country's largest life cover provider, will launch its initial public offer (IPO), the biggest in the history of the Indian capital market, today. You need to open a Demat account and get your KYC process completed before you apply for the IPO. All Details Here

Written by: India.com Business Desk Edited by: Analiza Pathak

Updated: May 4, 2022, 1:50 PM IST

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LIC IPO will list on the bourses on May 17, 2022

Mumbai: LIC’s long-awaited initial public offering was launched today with a price band of  Rs 902-949 and will continue till Monday, May 9, 2022. It is the largest-ever IPO in the country. The LIC IPO was opened to anchor investors on May 2. Around one-third of the shares were subscribed in the first two hours. The policyholders’ portion was fully subscribed just within a couple of hours of the opening of the public subscription of the country’s largest IPO.

At around 12.25 pm, the policyholders’ portion was subscribed 1.05 times. Over 50 per cent of the shares reserved for employees were subscribed by 12.25 pm while around 33 per cent of the retail portion was subscribed.

However, there has been a muted response in the non-institutional category. The non-institutional category that consists of corporates, individuals, and others has witnessed just 6 per cent subscription.

Overall, around 31 per cent of the shares up for sale have been subscribed in just around the first two hours.
The country’s largest IPO will remain open for public subscription till May 9.

How to Apply for LIC IPO?

Investors and LIC policyholders need to have a demat account to apply for the LIC IPO. They can use different brokerage apps like Groww, Upstox and Zerodha or use the platform of any other depository participant (DP) to book the issue.

For policyholders: If you are a LIC policyholder, you will have to first link your both policy and Demat account with your Permanent Account Number (PAN).

LIC IPO: Step-by-step guide to Apply

1. Log in to the relevant portal after opening the demat account
2. Once done, visit your profile on the depository participant’s platform. While navigation process may vary from platform to platform, you would want to look at the IPO section here
3. Now, select LIC IPO tab and select the category you want to bid for — in this case LIC Policyholder. Now, fill in your depository and bank account details
4. Once done, enter a bid price and the number of shares you want to apply for
5. Go through the terms and conditions carefully, and click on the submit/ apply option
6. After this, you will receive a mandate from the participating bank on your UPI app which you need to confirm. Now, complete the payment option by using UPI or any other online payment option to buy LIC IPO shares

LIC IPO: 10 Tings to Know About Subscription

1. For the LIC IPO, the total value is set at Rs 21,000 crore, which makes it the country’s biggest public issue till date.
2. Nearly 15.81 lakh shares have been reserved for employees and around 2.21 crore shares for policyholders.
3. Interested subscribers can apply in lots, where one LIC IPO lot comprises 15 LIC shares.
4. One applicant can apply for a minimum of one and a maximum of 14 lots.
5. The minimum amount needed to apply for the LIC IPO is Rs 14,235.
6. The LIC IPO price band has been fixed at Rs 902 to Rs 949 per equity share. However, policyholders and LIC employees applying for the public issue will get a Rs 60 and Rs 45 discount, respectively.
7. Initially, the LIC IPO was planned for launch before March 31 but it was postponed due to poor market conditions due to Russia-Ukraine war.
8. The LIC shares are likely to be listed on BSE and NSE on May 17.
9. Your successful shares will be credited to your demat account by May 16.
10. In case you don’t get allotted your desired number of shares, your money will be refunded by May 13.

About LIC

LIC was formed by merging and nationalizing as many as 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer’s group product portfolio comprises 11 group products.

As of December 2021, LIC had a market share of 61.6 per cent in terms of premiums or Gross Written Premium (GWP), 61.4 per cent in terms of new business premium, 71.8 per cent in terms of the number of individual policies issued, and 88.8 per cent in terms of the number of group policies issued.