LIC IPO: The Dalal Street has been set abuzz once again, with India’s largest life insurer, Life Insurance Corporation of India (LIC) is opening its initial public offering (IPO) on May 4, Wednesday. The LIC IPO opens today, which means the wait is over for subscribers and investors who want to invest in the largest public issue in India’s history. The LIC IPO, which is an offer for sale (OFS), share price has been fixed at Rs 902 to Rs 949 apiece, with discounts for policyholders, employees and retail investors. LIC IPO will be open for subscription from May 4 to May 9, during which interested investors can bid for the issue.
LIC policyholders, retail investors and employees will get a discount if they invest in the LIC IPO. The company has fixed the discount of Rs 45 for retail investors and employees, and Rs 60 for policyholders. So the effective price for retail investors and employees will be Rs 904, while for LIC policyholders, it will be Rs 889 if they invest in the LIC IPO.
How to Apply for LIC IPO?
Valued at Rs 21,000 crore LIC IPO is expected to attract bids from several first time investors. If you are such a person, you have to ensure that you open a demat account, which is used for trading. 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. Complete the e-KYC process and follow the steps below:
-After you have opened the demat account, visit your profile on the depository participant’s platform. While navigation process may vary in different platforms, you would want to look at the IPO section on the platform you are navigating through
-Now, click on that option and select the LIC IPO tab, after which you would want to look for the relevant category. If you are a retail or policyholder investor, click on that option to get relevant discounts. Enter your depository details, choose the number place a bid and click on the submit or apply option
-After this, you will receive a mandate from the participating bank. Your application process will be done once you accept this mandate
-Once done, click on the ‘apply now’ or submit button. Then complete the payment option by using UPI to buy LIC IPO shares at discounted rates.
LIC IPO: Should You Subscribe?
Reliance Securities: LIC was recognised as the third-strongest and 10th most-valuable global insurance brand as per the “Insurance 100 2021 report” released by Brand Finance. LIC was also recognized by WPP Kantar as the second most-valuable brand in India in the report “BrandZ Top 75 Most Valuable Indian Brands” for 2018, 2019 and 2020.
LIC has a diverse portfolio of insurance and investment products to cater to the needs of individuals. The company is well-placed owing to its omni-channel distribution network comprising of 1.33mn agents, several partners and alternate channels, its trusted “LIC” brand value, and 65 years of lineage. Moreover, LIC is backed by its strong financial track record and experienced management team. In view of the giant market share, largest assets under management, strong brand, diverse portfolio of products, and valuation comfort, we recommend SUBSCRIBE to the issue.