LIC’s IPO finally arrived, on May 4. The price band as per RHP is Rs. 902 to Rs. 949, and 35% is reserved for retail investors in this initial public offering. If you are a LIC policyholder then a 10% quota is there for you and some percentage is reserved for you even if you are a LIC employee. Now you are thinking that if both of you then fall in all the three categories then by what date should you bid so that you can get the maximum IPO of LIC successfully – let’s see those exclusive tricks and strategies.
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2 Lac is the Maximum Amount, but you can Invest upto 4 lac and 6 lac
You have seen that individuals have got the option of three quota LIC IPO – as a retail investor, as a policyholder, and as an employee. So if you apply only from the retail investor’s quota then you can invest a maximum of 2 lakh. But if you are a retail investor and policyholder and also invest in your two quotas then you will get a total limit of 4 lakhs and you can invest that much. Similarly, if you are also an employee, then you bid in three quotas – then you will get a total limit of 6 lakhs.
Quota, you will also get discount
Policyholders having a quota of Rs. 60 per share and for the remaining two quotas, you will get Rs. 45 per share discount. Yes, there is more exemption in the policyholder quota.
You can also invest in quotas with non-institutional investors – but there is a condition
If you have LIC shares of more than 2 lakhs, then you can also do it from the quota of non-institutional investors. But, then you will not be able to do that from the retail investor quota. Most HNIs invest in the category of non-institutional investors. The quota for LIC NII is 15% and investors will not get any discount – as available in policyholder, retail investor, and employee quotas.
But remember – consider when and why you would be an ‘eligible policyholder’
Firstly, only those policyholders can apply for this quota, who have taken the policy before February 13. FIR Annuity – You can also apply if you are a Deferred or Immediate Pension policyholder who is getting a regular pension. But those people who are covered under group policy are not eligible under this quota. So if you were thinking of doing a policyholder’s quota bid on a Group Policy basis – please skip that plan.
Apart from this, you are not eligible even if your PAN details are not linked with the records of LIC. If you are thinking that you will do yak all today, then it is not possible now because the last date was February 28.
In LIC IPO every policyholder should have his own Demat account. And if there is a joint account then you are the primary holder then only then you will be considered a LIC policyholder – even if this does not happen then you will not be eligible.
So, before 4th May, you kindly consider all these angles in advance and then do IPO smartly accordingly – if you consider all these factors then you will be able to successfully bid in LIC IPO.