The LIC IPO has become one of the most exciting moments in Indian share market history. The largest initial public offering (IPO) in India’s history is projected to hit the bourses by March 31, 2022. The LIC IPO will start its applications on March 11, 2022, as the company has filed DRHP with SEBI on 13th February 2022. With the IPO, LIC is poised to become the firm with the greatest market capitalization in India.

People like LIC policyholders, retail investors, employees can participate in the LIC IPO.

Policyholders get a 10% reservation on the base price of the IPO. It is said that the LIC IPO will be listed in the NSE and BSE later on. The value of LIC IPO per equity share is Rs.10.

To invest in IPOs in India, you need a Demat account that will help you hold your shares, a trading account for selling shares, and a UPI id that will help block funds in your bank account. 

How Do Policyholders Apply For The LIC IPO?

  • Policyholders with one or more policies can apply under the ‘Policyholder Reservation Policy.’
  • They must link the PAN information to their LIC plans by February 28, 2022.
  • Only Indian residents are eligible to Apply For The LIC IPO. NRI policyholders are not eligible for the reservation.
  • According to the report given by the government, a policyholder can do bidding up to Rs 2 lakh net discount. Only insurance with a discount of less than Rs 2 lakh will get considered for allotment.
  • Demat Account – Policyholders can apply for the LIC IPO using their Demat accounts. It will include all pertinent information, such as the PAN number.
  • ABSA Approach – Applications Supported by Blocked Amount(ABSA) is another method used for the application. According to the SEBI, the full bid amount will get frozen by the bank in the ABSA bidder account. Policyholders who use this technique must verify that their ABSA account has a sufficient credit balance.
  • Documents must also be presented to the broker, registrar, and transfer agents.

Steps to Apply for a LIC IPO (Initial Public Offering) Online 

  • Log in to your trading platform website, navigate to the IPO section, and click it to the selected page. After that, choose the LIC IPO.
  • Enter the number of lots and the price you want to apply.
  • Enter your UPI ID and press the submit button. Your bid will get submitted to the exchange as a result of this.
  • You will receive a notification to block funds in your email/ mobile number. Approve the request for a block.
  • If your application is approved, the required amount will get frozen in your bank account.
  • The blocked amount gets deducted from your bank account at the time of allotment. The shares will get deposited into your Demat account. 

Your bank will release any additional funds up to the number of shares applied but not allotted.

For example, if you want to apply for a LIC IPO, you can also choose a mobile application to do this process, IIFL Securities also provide a Mobile app through which you can buy IPO the following are the steps you could follow:

  • Login to IIFL Markets Mobile App.
  • Go to the IPO section on the website and select the LIC IPO.
  • Click on the LIC IPO and apply.
  • Click the ‘Apply’ button next to Purchase.
  • Select which type of investor and enter UPI ID, quantity, and price.
  • You can check the cut-off to see the price.
  • Click on the ‘Pay Now’ button.
  • IIFL sends a payment request to your UPI application (like through a mobile app or UI payment app) in a few hours.
  • Accept the payment by logging in to the UPI application.
  • After the transaction is done, IIFL sends an SMS confirmation to your mobile phone as an acknowledgment of your IPO bid.

How Do I Apply for a LIC IPO Offline?  

An offline application is created by sending a completed application to a designated collection center. Nowadays, most of them prefer online, but for some who prefer offline, here are the details about applying for a LIC IPO.  

When the IPO is available in the market, you can start filling out the ASBA application with your name, PAN, Demat number, bid quantity, and bid price and submit it to the Self Certified Syndicate Banks (SCSB). The bank will enter the application details into the bidding platform. Your responsibility is to ensure that all details are correct to prevent rejection.