LIC IPO Final Day: Can Policyholders Apply For More Than One Category? Check Details Here

LIC listing: The issue has been subscribed 1.79 times on the fifth day of the offer, and the shares of the insurer behemoth are likely to be listed on May 17

Investors can bid for a minimum of 15 shares and in multiples of 15 thereafter for LIC IPO. Image: Getty

Source : Getty

New Delhi: The Initial Public Offering (IPO) of the insurance behemoth Life Insurance Corporation of India (LIC), which opened on May 4, will come to a close on Monday. The issue has been subscribed 1.79 times on the fifth day of the offer. The shares are likely to be listed on May 17.

The state-run insurer has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, while the policyholders will get a discount of Rs 60 per equity share.

The central government currently holds 100 per cent stake in LIC. It is offering 3.5 per cent stake, or 221,374,920 shares, through the initial offer.

What is the maximum amount policyholders can bid for?

Investors can bid for a minimum of 15 shares and in multiples of 15 thereafter. It simply means that one can bid for 15, 30, 45, 60 shares, and so on. The insurer has set a maximum amount of Rs 2 lakh for retail investors, policyholders, and employees.

However, a policyholder will be able to bid for only 14 lots.

Can a policyholder apply more than one application in LIC IPO?

Those policyholders who have linked their PAN number with the LIC policy shall be eligible for the policyholder discount. “A retail investor who is also a policyholder can apply for two IPO applications, one in the policyholder category and another one in the retail category so that retail investors will be eligible for policyholder discount and retail investor discount," according to Yash Gupta- Equity Research Analyst, Angel One quoted in a News 18 report.

Is it possible to bid for the LIC IPO under multiple quotas?

Most people may be able to apply for the LIC IPO in case you are connected with LIC — as an employee or policyholder or both. One can also apply under three different categories, if preferred. It means applicant can place a bid under the portions reserved for employees, policyholders and retail or non-institutional investors (one of the two). However, if you make an application both under the retail and non-institutional portion, it will be considered as multiple bids and both will get rejected.