LIC Launching IPO Tomorrow
All investors and traders now your wait is finally over, LIC IPO is launching tomorrow. It will be the biggest ever to be listed in the Indian Capital Market history. To prepare you all for tomorrow we are sharing some key points to revise and improvise strategy if needed.
LIC IPO Key Points:
Price Range
The price range per equity share in the IPO is settled between ₹902-₹949 with the face value of ₹10 each. Meanwhile, loyal customers of LIC mean policyholders are getting a discount of ₹60 and retail investors, and employees are getting relief of ₹45.
IPO Aim
By launching this IPO the government is aiming to garner the figure of ₹21,000 Cr with an upper price range just by liquidating a 3.5 per cent stake in the Insurance Giant. The government is offering nearly about 22.1 Cr shares to the investors by this IPO, out of which 1,581,249 units are reserved for employees and 22,137,492 are locked for the policyholders. Out of the total size 50 per cent is reserved for qualified institutional buyers, 35 per cent for investors, and 15 per cent remaining will be for non-institutional buyers.
Objective
The main objective is to avail of the benefits of getting listed equity shares on the stock exchange and to offer 22.1 Cr shares to the investors.
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Lot Size
A minimum of 15 shares which is equal to one lot will be the starting bid for every investor and further, they can bid for multiples. Therefore a retail investor is allowed to bid for a maximum of 14 lots or 210 shares which are worth ₹1,99,290. Similarly, as retail investors, the maximum amount to bid for LIC employees and LIC policyholders has been capped at ₹2 lakh.
Grey Market Premium And Other Details
Grey market premium as per the demand of LIC IPO is ₹85 per share. The allotment date of the shares to the investors will be May 12 and the refund to other not so lucky bidders will be sent on May 13. Shares will show up in the Demat account of allotted bidders by May 16.
