Life Insurance Corporation of India (LIC) is good to go to hit the market with India’s biggest ever IPO on May 4.
While the first draft distraction plan (DRHP) didn’t indicate the proposition size, the distraction outline (RHP) has now explained the numbers.
The government will offload 3.5 percent of its stake in LIC. The cost band has been fixed at Rs 902-949. At the upper finish of the cost band, the issue is esteemed at Rs 21,000 crore.
In a first-of-its-sort move, LIC has chosen to cut out a policyholders’ share in its public issue. Thus, up to 10 percent of the deal will be held for policyholders, retail investorss’ part will be 35%, while LIC representatives’ portion will depend on 0.71 percent.
Here is all that you require to be aware prior to putting resources into the IPO.
Are there any limits to the amount I can contribute?
Assuming you are putting resources into any of these saved amounts – policyholders, representatives or retail – you can at the most contribute Rs 2 lakh (net of rebate) through your own demat account. Nonetheless, if you bid in every one of the three standards – policyholders, representatives as well as retail investors – you get a total constraint of Rs 6 lakh.
Also, if that you are offering for the offers in the representatives and policyholders’ portions, you get a total constraint of Rs 4 lakh. In any case, various portions offer various limits on offer cost.
What are the limits advertised?
Assuming that your bid is acknowledged in the policyholders’ quantity, your last purchasing cost will be limited to the degree of Rs 60 for each offer to the proposition cost. The markdown is somewhat less at Rs 45 for every offer in the workers and retail investor standards.
Anyway, what will be my last cost?
Investors offering through the policyholder, workers or retail share are qualified for place their offers at the cut-off cost. The cut-off cost is only the last offer cost of the organization that gets acknowledged as investors across classes put in their offers at various focuses inside the cost band (Rs 902-949 for every offer).
On this cut-off cost (offer cost), shares apportioned in policyholder quantity will be at a markdown of Rs 60 for every offer, shares dispensed in workers and retail investor standard will get rebate of Rs 45 for each offer. Any unused sum will be discounted to investors’ bank accounts.
Could I at any point offer in the non-institutional piece for additional offers?
Indeed, you can offer for more than Rs 2 lakh worth of offers in the non-institutional portion (NII) however at that point you can’t offer in the retail amount. Essentially, assuming you bid in the retail share, your non-institutional bid won’t be acknowledged. What’s more, on the off chance that you bid in both the standards, both the offers will get dismissed.
Likewise recollect, there is no rebate for the non-institutional piece. NII portion is commonly implied for high-total assets financial backers (HNIs). Of the net deal, 15% will be saved for non-institutional financial backers.
What is the minimum investment parcel size?
You should offer for at least 15 offers and past that in products of 15.
Is there a slice off date to be considered as a qualified policyholder?
As per the DRHP documented in February, people who have purchased their policy at the latest February 13 (the date on which the DRHP was recorded) can apply under the policyholder reservation segment. Assuming you are an annuitant – that is, assuming you are conceded or prompt benefits policyholder getting ordinary benefits – you, as well, will be permitted to apply.
In any case, assuming your departed life partner was an annuitant and you have been getting the annuity after her demise, you won’t be qualified for this booking. Those covered under bunch strategies won’t be qualified to apply under this portion.
What are different circumstances for policyholders?
If you have not refreshed your PAN subtleties in LIC’s accounts, you won’t be viewed as an ‘qualified’ policyholder. The last date for connecting your arrangement with your PAN was February 28. Likewise note, having your own demat account is obligatory to take an interest in IPOs.
Also, as a policyholder who wishes to apply for LIC’s IPO, you ought to be the first accountholder in your demat account. In the event that it is shared service, you ought to be the first or essential holder.
Who is qualified to offer under the retail parcel?
You can take this course assuming you are an inhabitant Indian individual, Hindu Undivided Family (for the sake of the Karta) or a qualified NRI. The most extreme bid can depend on Rs 2 lakh, net of retail financial backers’ markdown (Rs 45 for each offer).
What modes could I at any point use to put resources into the IPO?
All bidders, notwithstanding anchor investors, should obligatorily take part through the ASBA (application upheld by hindered sum) process. You should make a bid-cum-application, approving a SCSB (self-affirmed organization bank) to hinder the bid sum in the ASBA ledger. ASBA guarantees that the financial backers’ application cash is just charged from the bank account after her bid is finished for share distribution.
This additionally covers the UPI mode, where the bid sum will be impeded after you acknowledge the UPI command demand. Structures that don’t contain subtleties of your store account, DP ID, client ID, UPI ID and PAN will be dismissed. You should either give your bank account subtleties (or your UPI ID assuming you are utilizing this instrument) and authorisation to impede assets in your form.
You can’t give someone else’s UPI ID or financial balance – such offers will be dismissed. Those taking the actual application course should select their form cautiously. According to LIC’s RHP, the shades of the bid-cum-application forms are green (for policyholders), pink (for workers) and white (for retail investors).
