IPO seasons are the best. Retail investors are increasing by the day, bringing it under the spotlight. An Initial Public Offering provides shares of a private corporation to the public in a new stock issuance by meeting the requirements of stock exchanges and the Securities and Exchange Board of India.
The objective of the Life Insurance Corporation or LIC IPO is to utilise the net proceeds to address working capital requirements and carry out an offer for sale of 221,374,920 shares by selling shareholders to meet corporate purposes.
IPO allotment
This could be random. The shares can be subscribed at par, undersubscribed, or oversubscribed. During oversubscription, the demand for shares is higher than those issued to the public by the company.
Company details
LIC is an investment and Insurance corporation owned by the Government of India. It is the only Life Insurance company in the Indian public sector with an extensive presence in rural and urban areas. It operates through eight zonal and 113 divisional offices. The LIC IPO date in 2022 is from May 4 to May 9, with a market lot of 15 shares.
Increasing odds
It is essential to note the LIC IPO price and shares allotted for increasing the odds of getting higher shares. The price band is Rs. 902 to Rs. 949 per share, with a face value of Rs. 10. A discount of Rs. 45 per equity share is offered to the individual retail bidders bidding in the retail portion and the eligible employees bidding in the employee reservation portion. Here are other tips for doing so:
Take it easy
The applications and bids for IPOs are auctions where investors bid for the offered shares at different prices. It can also be an affixed price band the company provides for bidding at a cut-off price.
Make it a family goal
Keep the quantity at the lowest. When the IPOs get oversubscribed, there are chances people with less quantity get the allotment. If you wish to buy a considerable quantity, fill out the application form from each of the family members’ Demat Accounts.
Track the time
Ensure everything is under check before time because the last-minute delay in any application form brings unnecessary tension and second thoughts. Since humans make errors, there are chances of glitches and bugs in the systems. It is better to be ahead of the clock to avoid unnecessary stress.
Other considerations
The minimum investment amount for the LIC IPO in India is Rs. 13,530. The issue size is Rs. 21,000 crore. It is important to verify all the documents before submission to avoid delay and quick share allotment. Read the company’s history, and look at its financials in the prospectus uploaded on SEBI’s website. Bid through your Bank Account or a broker’s website.