The Life Insurance Corporation of India (LIC) will launch one of the largest initial public offers (IPOs) in the history of the Indian capital market on May 4. The government is expected to offer 221,374,920 equity shares as an offer for sale (OFS) in the IPO. LIC has a fixed price band of Rs 902-949 apiece. LIC is offering a discount of Rs 60 per share to eligible policyholders and a discount of Rs 45 per share to employees and retail individual investors.
Bids can be made for a minimum of 15 equity shares and further in multiples of 15. The LIC IPO will be on till May 9. Investors can apply through various platforms. One of the most popular and easy-to-use platforms is Paytm Money, that allows users to submit their IPO application in just a few clicks. Paytm Money is also helping users open a free demat account for the LIC IPO.
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Here’s how to apply for LIC IPO through Paytm Money/Paytm app
- If you do not have a demat account, then open a free account with Paytm Money by completing the KYC and providing the necessary information.
- Then go the Paytm Money app or Paytm app, and click on the ‘Apply for LIC IPO’ banner or ad; a KYC page will open to verify your details.
- Once KYC is done, enter your bid details such as quantity, price, number of bids, and submit your UPI ID.
- You will immediately get a ‘block funds’ request on your UPI ID. Accept the request to proceed and block funds for the specified IPO application from your bank account that is linked with the specified UPI. The funds will be blocked until the IPO happens.
- If the shares are allotted, then the final blocked amount will be automatically debited from the bank account. If the shares are not allotted, then the blocked amount will be unblocked and will reflect in your bank account.
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The bidding process
- The maximum subscription amount of the LIC IPO for retail investors is Rs 2 lakh.
- The lot size for the LIC IPO is 15, therefore, you must bid for multiples of 15 shares like 30, 45, 60 and so on.
How to bid on the Paytm Money app
- Enter the number of shares you wish to buy, as per the lot size (after completing KYC).
- You can apply at the cut off price set by LIC or bid for a desired amount within the price band.
- A maximum of three bids will be accepted.
- You then need to enter the UPI ID on Paytm Money’s IPO application form.
