LIC IPO FAQs Answered

Life Insurance Corporation (LIC) IPO FAQs answered

Introduction

So, the big day arrives. The Life Insurance Corporation (LIC) is arriving at the bourses, and the LIC IPO opens today.

So here’s everything you need to know about the Initial Public Offering (IPO) of the Life Insurance Corporation (LIC).

FAQs of LIC IPO answered

When can you apply for the LIC IPO?

You can apply for the IPO of Life Insurance Corporation from Wednesday, 05th May 2022, until Monday, 09th May 2022 (both dates inclusive). However, we suggest that in case you wish to apply for the IPO, you apply before noon on 09th May 2022, even though the cut-off timings on the last day is around 3:30pm. However, we do note that the brokers do face glitches, issues after 2pm. So, place in your IPO applications in time before the cut-off timings on the last day.

When is the allotment of LIC finalised, and when can I check my allotment status?

The finalisation will be done by Thursday, 12th May 2022, and the allotment status can be checked on kfintech’s portal starting 12th May 2022

What is the price band for the IPO?

The price band for Qualified Institutional Buyers (QIB), and Non-Institutional Investors(NII) is ₹ 902/- to ₹ 949/- per share.

What is the price band for retail investors when applying for LIC IPO?

The retail investors get a discount of ₹ 45/- per share. So, the effective price band for Retail Individual Investors(RII) is ₹ 857/- to ₹ 904/- per share.

What is the price band for employees of Life Insurance Corporation?

Like the retail investors, the employees of Life Insurance Corporation also get a discount of ₹ 45/- per share. So, the effective price band in the Employee quota is ₹ 857/- to ₹ 904/- per share

What is the price band for policy holders of Life Insurance Corporation?

The discount for the policy holder quota, while applying for the LIC IPO is ₹ 60/- per share. So the effective price band for the Policy Holder quota is ₹ 842/- to ₹ 889/- per share.
Please note that ONLY the existing policy holders of Life Insurance Corporation, who have linked their LIC policy to their PAN card on or before February 28, 2022 are eligible to apply for the IPO through the policy holder’s quota.

When will the shares of LIC be credited to my demat account?

The shares of LIC (if you receive the IPO allotment) will be credited to your linked demat account around Monday, 16th May 2022. However, there are instances where the allotment is delayed, and the shares are credited only in the morning the next day. So, be guided accordingly.

When is the LIC listing date?

The shares of the Life Insurance Corporation (LIC) will start trading on Tuesday, 17th May 2022. You can start buying and selling LIC shares starting this date.

Can an eligible LIC policy holder apply through the policy holder quota, as well as the retail quota?

YES. Eligible LIC policy holders can apply for the IPO, through both the quotas, viz. the policy holder quota, as well as the retail quota, as per the respective limits.

Can an eligible LIC policy holder apply through the policy holder quota, as well as the NII quota?

YES. Eligible LIC policy holders can apply for the IPO, through both the quotas, viz. the policy holder quota, as well as the NII quota.

Can an eligible LIC policy holder-cum-employees apply through the employee quota, policy holder quota, as well as the retail quota?

YES. LIC employees, who are also eligible LIC policy holders can apply for the IPO, through all three quotas, viz. the employee quota, policy holder quota, as well as the NII/Retail quota, as per the respective quota limits.

Conclusion

Hopefully, this article has answered the majority of the questions you may have had about the Frequently Asked Questions (FAQs) about the Life Insurance Corporation IPO. We will continue to update the article, as and when new updates come through. All the best in your investing journey.

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