LIC IPO subscription will open on May 4 and already the grey market premium (GMP) is up at Rs. 70 today. Investors willing to apply for the LIC IPO can do so even before it opens via Paytm Money’s Pre-Open IPO application feature. Check steps here.
The most awaited initial public offering, which will also be the biggest public issue ever in the country, is now less than a week away. Life Insurance Corporation of India (LIC), country’s largest life insurer will open for public subscription on Wednesday, May 4 and will conclude on May 9. The government is looking to divest its 3.5 percent stake in the insurer by selling 22.13 crore shares through an offer-for-sale (OFS) with this IPO. The price band of LIC IPO has been fixed at Rs. 902-949 per share. As per a report by livemint.com, according to market observers, LIC IPO GMP is Rs. 70 in the grey market on Friday, April 29, higher than the Rs. 50 seen yesterday.
People who are willing to bid in the LIC IPO need to know that in the initial share sale, the retail investors and eligible employees will get a discount of Rs. 45 per equity share and policyholders will get a discount of Rs. 60 per equity share. Investors will be able to bid for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter. Post subscription, the allotment of shares will take place by May 16. While, the shares of the company are expected to list on BSE and NSE on May 17, 2022.
In a recent development, One97 Communications Limited (OCL) that owns Paytm has announced that its wholly-owned subsidiary Paytm Money Limited (PML) has launched the pre-open IPO feature for the upcoming LIC IPO. The company is also offering free demat accounts for new investors. Therefore, investors who are eagerly waiting to subscribe to the IPO can apply for it through Paytm Money. They can even do it now — even before the IPO opens for subscription, using Paytm Money’s Pre-Open IPO application feature.
How to apply through the Pre-Open IPO feature
Paytm Money has enabled the pre-open feature for the LIC IPO. With this, users can subscribe to this IPO right away. The pre-open application will be recorded on Paytm Money’s system and sent to the exchange for processing whenever the IPO opens. Check the steps below to apply for LIC IPO.
1. Go to the “Invest in IPO” option on Paytm Money, you will be able to see the IPO with a Pre-Open tab.
2. Select LIC IPO.
3. In the respective IPO screen, you will be able to see the “Apply Now” button with the disclaimer that an application submitted in the pre-open stage can be canceled or modified only when it is sent to exchange when IPO opens, select apply now.
4. The Apply for IPO page will open. Here you can modify the lot size, add up to 3 bids and modify the price. Post that UPI ID can be filled and apply button needs to be selected.
5. After tapping “Apply” you will get a screen stating that IPO is currently pre-open and application will be sent to exchange after IPO start date.
How to apply for the LIC IPO when subscription opens
1. Go to the IPO section on Paytm Money’s home screen.
2. The LIC IPO option will be available in the ‘Current & Upcoming’ tab within IPOs.
3. Once you click on the option you will see the ‘Apply now’ button which will take you to the bid page. On this page, you can update the price and quantity for your application.
4. In the ‘Add UPI Details’ section, update your UPI ID and click on ‘Apply’.’