The much-awaited LIC IPO will be going live from May 4th-9th. The IPO will be the biggest ever in the history of the Indian stock market.
The issue size of the IPO is Rs 21,000 crore, and the price band is Rs 902-949 per share.
In this blog, we break down the various investor categories and the details of IPO.
Policyholders
Life Insurance Corporation (LIC) has reserved 10% of its IPO size for policyholders. Policyholders are also eligible for a discount of Rs 60 per share.
The limit for an application under the policyholder category is Rs 2 lakh.
If you are a policyholder, you can also apply under the retail category, by making separate applications.
Retail investors
Employees and retail investors will get a discount of Rs 45 per share. LIC has reserved 35% of its IPO size for retail investors.
Under the retail category, investors can apply for up to Rs 2 lakh.
An employee who is also a policyholder can apply in retail and policyholder categories as well—or for shares worth Rs 6 lakh.
Non-institutional investors (NIIs) and HNIs
This category includes individuals, companies, Hindu Undivided Families (HUFs) and other institutions who want to invest more than Rs 2 lakh in an IPO.
15% of the LIC IPO’s issue size is reserved for NIIs.
High net-worth individuals (HNIs) are allowed to apply for more than Rs 5 lakh in an IPO using the UPI mode. If you wish to invest more than Rs 5 lakh, you would still need to apply via NetBanking, if your bank supports it
Qualified Institutional Investors (QII)
These include commercial banks, financial institutions, mutual fund houses and Foreign Portfolio Investors (FPIs). 50% of the IPO’s issue size is reserved for QIIs.
QIIs are required to be registered with market regulator SEBI.
Conclusion
Do take a look at the details of all the categories and decide which one works best for you.
“Disclaimer – Investment in securities market are subject to market risks, read all the related documents carefully before investing. . This content is purely for information and investor awareness purpose only and in no way to be considered as advice or recommendation. Source: RHP. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532. NSE (90165), BSE(6707) Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi –110019.
