How to apply for LIC IPO via multiple categories3 min read

How to apply for LIC IPO via multiple categories3 min read

The much-awaited LIC IPO will be live from May 4th-9th. The IPO is the talk of the town, since it is the biggest public offering ever in the history of the Indian stock market. 

You can apply through more than one category to maximize your allotment chances, based on your eligibility. 

We’ve broken down the various investor categories and the details of the IPO. We have also explained how to apply under multiple categories. 

Details of the LIC IPO:

Price Band: Rs 902 – Rs 949

Issue size: Rs 21,000 crore

Discount for Retail investors – Rs 45

Discount for Policyholders – Rs 60

Discount for Employees – Rs 45

Next, let’s take a look at the various categories: 

Policyholders 

Life Insurance Corporation (LIC) has reserved 10% of its IPO size for policyholders. The limit for an application under the policyholder category is Rs 2 lakh.  

Retail investors 

LIC has reserved 35% of its IPO size for retail investors. Under the retail category, investors can apply up to Rs 2 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 up to 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.

Category	Discount /share	Range	Who can apply?
Retail	Rs 45	Upto Rs 2 lakh	Everyone
HNI	0	Rs 2 lakh – Rs 5 lakh	Everyone
Policyholder	Rs 60	Upto Rs 2 lakh	Applicable for LIC IPO and if you have linked PAN number to LIC Policy. ( Know more here )
Employee	Rs 45	Upto Rs 5 lakh	Only employees of the company going for IPO

Applying under multiple categories

Steps to apply for any category in IPO:

• Click on the IPO of choice
• Go to the details page of IPO
• Select the category
• Click Apply
• Fill in the Bid details
• Submit your application

If you want to apply under more than one category, you will have to make separate applications each time. Do note that you can either apply under retail or HNI category depending on your investment aptitude, but not in both. 

Categories	Eligibility
Retail + Policyholder category	You should have a LIC policy with the same PAN as that of your Demat account of Paytm Money. You should have linked your PAN to LIC Policy before 28 Feb 2022. Policyholder application is over and above Retail application.
HNI + Policyholder category	Minimum investment amount for HNI category is Rs 2 lakh You should have a LIC policy with the same PAN as that of your Demat account of Paytm Money. You should have linked your PAN to LIC Policy before 28 Feb 2022. Policyholder application is over and above HNI application.
HNI + Policyholder + Employee category	You should have linked your PAN to your LIC policy before 28 Feb 2022. You should be an employee of LIC to apply in Employee category Employee and policyholder applications are over and above HNI applications.
Retail + Policyholder + Employee category	You should have a LIC scheme with the same PAN as that of your Demat account of Paytm Money. You should have linked your PAN to your LIC Policy before 28 Feb 2022. You should be an employee of LIC to apply in the Employee category. Employee and policyholder applications are over and above retail applications.

Conclusion

Do take a look at the details of all the categories and decide which one works best for you. You can read more about the investor categories in our blog. 

“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.