LIC IPO: It is the last day to subscribe to the LIC IPO, which has seen a bumper response so far from investors. The initial public offering (IPO) of insurance behemoth Life Insurance Corporation (LIC) has seen an overwhelming response from investors, especially in the LIC policyholders, employees and retail categories. May 9, that is today is the last date to apply to the country’s largest IPO, which was already subscribed 1.79 times till May 8, which was the fifth day of bidding. The government looks to offload 3.5 per cent of its stake in the company and garner Rs 21,000 crore through the IPO to meet its divestment targets.
However, with such overwhelming response — especially among LIC policyholders who subscribed 5.04 times of their portion, employees who bid for 3.79 times the allotted quota, and retail investors who subscribed 1.59 times of their portion — means that the chances to win the bids for LIC IPO shares becomes lesser. Here is how to increase your LIC IPO allotment chances.
LIC IPO: HOW TO INCREASE ALLOTMENT CHANCES
i) For the starters, if you are an LIC policyholder, you can bid for different quotas. The maximum limit to bid for the LIC IPO for retail investor category is Rs 2 lakhs, which translates to a maximum of 14 lots per investor. However, there is a way you can increase that. If you are an LIC policyholder who falls in the retail category, you can apply for both the categories separately and bid for Rs 2 lakh worth of shares. On top of that, if you are an LIC employee, policyholder and retail investor, you can bid for Rs 6 lakh worth of the lots. Investing more means your chances of LIC IPO allotment will be more.
ii) Another way to increase your chances is applying from multiple trading accounts for the LIC IPO. If the IPO is subscribed two times, and you have invested from three different accounts to fulfill your quota, chances are that you will get the LIC IPO allotment from one account for sure.
iii) For an oversubscribed IPO like the LIC IPO, investors should go for minimum bids. As per SEBI rules, retail investors will get the allotment shares in every bid from minimum to maximum. So, market observers recommend that you stick to that way.
iv) Market analysts also recommend to apply with different application numbers for oversubscribed IPOs like the LIC IPO. If you are bidding with the same application number from different trading account, chances are that you will not get an allotment for the LIC IPO.
HOW TO BUY LIC IPO SHARES
You need to have a demat account at a depository platform to buy LIC IPO shares. A demat account can be opened via platforms like Groww, Upstox, Zerodha and via online banking platforms like SBI, ICICI and SBI among other depository platforms.
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