LIC IPO (Initial Public Offering) has opened for subscription today and the insurance giant’s public issue will be open for bidding till 9th May 2022. Public issue price till 12:00 PM on the first day of LIC IPO subscription 20,550 crore has been subscribed 0.28 times while its retail segment is subscribed 0.31 times. However, LIC policyholders have shown more enthusiasm towards the public offering as the stake is almost 100% subscribed as of 12:00 PM today.
For LIC IPO It will be interesting for the applicants of Retail, Policyholder and Employee category to know how the shares will be allotted for different categories. According to the information available on zerodhaShare allotment will be done on draw basis for retail category applicants while share allotment for policyholders and employee category applicants will be done on proportionate basis.
To clarify what is meant by this draw of lots and proportionate basis of allotment, Avinash Gorakshakar, Head of Research, Profitmart Securities said, “In the retail category, the share allocation will be done on the basis of draw of lots, which means that the allottees will get a lot through allotment or at least 15 LIC Shares If their application gets through lucky draw. However, in case of policyholders and employees category, all applicants will be given at least some shares on a proportionate basis, which means that the share allocation here will not be done on lot basis. So, if one falls under LIC policyholder and employee category, he/she should apply for maximum number of lots. By doing so, they will be able to increase their chances of getting more shares of LIC.”
Hence, it is advisable for retail investors to apply for maximum number of lots in the reserved category i.e. LIC policyholder or employee category if they qualify for these categories.
The Government of India (Government of India) has announced 60 per equity share discount for LIC IPO applicants falling under the policyholder category, while the discount Rs 45 has been announced for employees and LIC IPO customers applying under the retail category.