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LIC IPO Open For Subscription: 7 Things To Keep In Mind

The LIC IPO, one of the most awaited issuances, began today and will stay open until May 9. Here are a few things to consider before bidding.

Shivani Meena
LIC IPO Opens today
LIC IPO Opens today

The Life Insurance Corporation (LIC) initial public offering (IPO) - India's largest public issuance to date by the country's largest insurance provider – opens to primary markets today. On May 2, the LIC IPO was made available to anchor investors.

Notably, instead of the five percent mentioned in the previous Draft Red Herring Prospectus(DRHP), the government, which controls the insurance giant, proposes to sell a 3.5 percent stake.

The government hopes to make a large contribution to the government's disinvestment proceeds this fiscal year with the newest public issuance.

Before the IPO, keep the following in mind:

Date of IPO: Bidding for the LIC IPO will be accessible to the general public from May 4 to May 9. (To learn how to apply, go here.)

Price Band: The price band for the LIC IPO has been set at Rs. 902 to Rs. 949 per equity share. Policyholders and LIC workers registering for the public issue, on the other hand, will receive a 60 and 45 percent discount, respectively.

LIC IPO GMP: According to market experts, the LIC IPO grey market premium (GMP) is now at Rs. 85, up Rs. 16 from the previous day.

IPO Size: The Government of India intends to raise a total of Rs 21,008.48 crore through the public offering, making it the country's largest IPO to date.

IPO Lot Size and limit: Applicants will be able to submit their applications in lots of 15, with each IPO lot containing 15 LIC shares. A person can apply for as little as one lot and as many as 14 lots or 210 shares. As a result, the minimum amount necessary to apply for the IPO is Rs. 14,235 (i.e. 949 x 15). For retail investors, policyholders, and LIC workers, the maximum bid amount has been set at Rs 2 lakh.

Date of IPO allotment: The allocation of shares is expected to be announced on May 12.

LIC IPO: On May 17, the LIC shares are expected to be listed on the BSE and NSE.

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