Bidding for LIC’s IPO continues to be in full swing on Saturday. Bank branches are also open on weekends to accept applications. However, with high demand among investors, there is a good chance that your application will be rejected for this mega IPO. But you can prevent that from happening!
SBI, via its Twitter account, announced some tips on Saturday to reduce the risk of your LIC IPO application being rejected.
According to SBI, there are five factors an investor should keep in mind when applying for an IPO of LIC through UPI. These are:
1. Make sure your bank account balance is sufficient.
2. Make sure you have entered the correct UPI ID and UPI PIN.
3. Make sure the PAN in the IPO application and the PAN linked to your bank account are the same.
4. Approve through the IPO Mandate Request through your UPI application.
5. Check your phone for text messages related to the IPO.
ASBA (Applications Supported by Blocked Amount) designated bank branches are also open to accept LIC IPO applications on Saturday and Sunday. The IPO will close on Monday.
LIC IPO opened on May 4 and will be available for subscription until May 9. ₹The 21,000 crore IPO is the largest ever to hit the markets.
Saturday was the fourth day of the IPO. Data provided on NSE showed that the public offering received cumulative bids of 25,76,76,330 shares against the bid size of 16,20,78,067 shares – registering an oversubscription of 1.59 times.
Strong demand was noted from policyholders and employees. While retail investors also showed a healthy response. The High Net Worth Investors (HNI) share fully subscribed today.
On the fourth day of the IPO, the share reserved for policyholders and employees was oversubscribed by 4.46 times and 3.46 times. The retail investor portion subscribed 1.39x, while the non-institutional investor (aka HNI) portion fully subscribed 1.05x. However, the share reserved for subscribed Qualified Institutional Buyers (QIBs) is only 67% of the reserved size.
The IPO has a price range of ₹902 to ₹949 per share. LIC offers ₹60 per stock discount for LIC policyholders, and ₹Rebate of 45 per share offered to retail investors.
LIC is expected to list on May 17.