Meta Description – The most potential IPO is LIC, the market leader in Indian life insurance. Here’s how to apply for the LIC IPO online using UPI.
Even though stock markets have been volatile in 2022 for various reasons, investors have shown a high level of interest in the LIC IPO online.
The LIC was the most extensive initial public offering (IPO) globally and the most popular. The government expects to earn around 21,000 rupees crores from selling a 3.5 percent stake in the insurance behemoth.
May 4 marked the start of the LIC initial public offering (IPO), complete on May 9. However, analysts report that the sale will stop today, May 5, due to the IPO’s enormous demand.
According to Aditya Kondawar, an independent IPO expert, “LIC seems to be on pace to sell out entirely on the second day, which would be a huge success for such a massive Upcoming IPO in India.”
LIC IPO Issue Prices –
Equity shares will be priced at 902 to 949 rupees per share, as established by the LIC. A portion of the company’s revenue is put aside for qualifying employees and policyholders.
Employees and retail investors who qualify will get a rupee 45 per share discount, while policyholders would receive a rupee 60 per share discount. The LIC had gathered little more than rupees Five thousand six hundred crores from institutional investors before the first public offering.
On May 17, holders of the company’s shares will have access to the NSE and BSE to trade their LIC shares.
You may pay for an IPO application using your UPI ID (Unified Payments Interface.) All your prerequisite is to instruct your broker to submit the IPO application on your behalf using your UPI ID.
SEBI has mandated that individuals who apply via the top 10 stock brokers in India, depository participants, and RTAs (registrar and transfer agents) participate in initial public offerings through the UPI channel. It makes the whole process safe and simple.
How to participate in LIC IPO Online through UPI?
Step 1: Fill and submit the LIC IPO application form using your UPI ID
Step 2: A request to process the money will appear in the UPI ID
Step 3: You must accept a request for money to be put aside for the IPO through the UPI ID
Step 4: Until your funds are allocated to the IPO and deducted from your account, the funds will stay in your bank account.
The maximum amount raised using an IPO application is Rs.2 lakh for each UPI transaction. Additionally, unallocated shares and money will be able to be used after the IPO.
Approve the request for a UPI mandate
Once you’ve submitted your offer, we’ll submit it on your behalf to the exchange. The exchange then transmits the bid to your bank through the National Payments Corporation of India (NPCI), enabling you to receive the mandate request via your UPI app.
Before retail investors may bid using the UPI Mechanism, they must first authorize a request for UPI mandate authorization.
IPO applications require approval of the notification sent to your UPI ID before being submitted. You may input your UPI PIN to approve the mandate request.
Usually, the mandate request is received quite quickly. The console may not update the UPI payment status until the end of the day.
If your funds are frozen owing to a legal application, the RTA will assess your request for re-allocation.
Do’s and Don’ts before bidding for the UPI IPO
The Bid cum Application Form does not enable the use of a third-party bank account or a third-party linked bank account UPI ID.
When RIBs (Relevé d’Identité Bancaire) submit bids over the UPI Mechanism, do not associate the UPI ID with a bank account that is not UPI 2.0 authorized by the NPCI (National Payments Corporation of India.)
If RIBs are bidding using the UPI Mechanism, please submit just one Bid cum Application Form for each UPI ID.
Before submitting bids using the UPI Mechanism, RIBs, Eligible Employees, and Policyholders should ensure that their DP ID, Client ID, PAN, and UPI ID data are correct.
It is critical to remember that investors who use the UPI Mechanism should only provide the Bidder’s and the first Bidder’s valid UPI IDs (in case of a joint account.)
Ascertain that they submit applications in the offer using only their ASBA Account or bank account-connected UPI ID and not the ASBA Account or bank account-connected UPI ID of a third party.
The Final Word
LIC is the market leader in the Indian life insurance industry, with a diverse product portfolio and a robust distribution network.
It varies from 1.5x to 2.5x for LIC’s publicly traded competitors. LIC’s IPO values, despite their enormous size, are pretty reasonably priced.
The company conducts over 90% of its business through agents, so if it continues to grow, it must expand the digital onboarding of its network.
It remains a substantial investment since it has an extensive network, is likely to expand at a double-digit pace, and is relatively inexpensive compared to other firms.