State-owned State Bank of India (SBI) on Friday asked all branches to remain open on May 8 to accept applications for LIC IPO. The announcement comes a day after the RBI directed all ASBA designated branches to remain open for the mega IPO on Sunday.
State Bank Of India He said through his Twitter account, “Here is a good news for all our customers who have applied for LIC IPO!”
SBI notified saying, “We are happy to inform that, for the convenience of our customers applying for LIC IPO, all our branches will remain open for accepting applications on 8th May 2022 (Sunday) “
On May 4, the RBI announced, “The Government of India has requested to facilitate bidding for LIC IPO that all bank branches designated to process ASBA (Application Backed by Blocked Amount) applications may be made public on May 8.” May be kept open for 2022 (Sunday).”
Earlier, the IPO of the behemoth was allowed to trade only on Saturdays during the weekend. However, it will now be available for bidding on Sundays as well.
ASBA is an application made by an investor to a Self-Certified Syndicate Bank (SCSB) to block the application amount in the bank account for subscribing to an issue. As per the SEBI circular, if an investor is applying through ASBA, his application money will be debited from the bank account only if his application is selected for allotment on the basis of allotment.
Notably, SCSB is one such bank which is recognized as a bank capable of providing ASBA services to its customers.
SBI is one of the ASBA designated banks.
Recently, LIC announced special loan offers for employees of the insurer to participate in the IPO. SBI is offering personal loan up to 20 lakhs, or 90% of the purchase price of the shares, whichever is lower, to LIC employees at a special rate of 7.35%, less than the three-year Marginal Cost Lending Rate (MCLR) of 7.4%.
In addition, SBI has waived processing fee for LIC employees on their five-year loan, where 10% of the loan amount will be taken as margin without any security or guarantee.
LIC IPO which is the biggest IPO ever in the market, opened on 4th May and will be available for subscription till 9th May. The price band of IPO is from 902 949 equity shares. The IPO has been fully subscribed in just two days of its issuance. Friday is the third day of the public offer.
The data quoted at around 3.41 on NSE showed that overall the IPO received bids of 20,49,28,020 equity shares against the proposed size of 16,20,78,067 equity shares – 1.26 times more subscriptions.
The share reserved for policyholders, employees and retail investors was oversubscribed by 3.72 times, 2.83 times and 1.14 times. Whereas the portion earmarked for Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) gained momentum by subscribing to 53% and 62%, respectively, against the reserve size.