LIC’s initial public offering (IPO) will be the largest the country has ever seen in terms of valuation. The scale of the problem has created huge hype surrounding the IPO. The government plans to raise Rs 20,557 crore from the issuance by simply giving up a 3.5% stake. Also Read – LIC IPO: Best Apps to Invest in India’s Biggest IPO
The bidding process for the IPO has started and there is a lot of interest shown even by new investors. Many of these investors will also be opening Demat accounts for the first time to subscribe to LIC IPO. The bidding process begins at 10 a.m. on May 4 and will continue until May 9. Also Read – Ola reportedly looking to launch IPO early next year: Details here
What is an IPO?
An IPO occurs when a private company decides to go public on a stock exchange. The shares of the company are offered to the public for the first time. Before filing for an IPO, the company must fulfill certain conditions set by the Securities and Exchange Board of India (SEBI). Also Read – Nykaa IPO Opens Today: How to Apply via Paytm Money, Zerodha, Other Apps
How to Apply for LIC IPO Online
There are basically two ways to apply for an IPO. In the offline method, you will need to complete an IPO form with your brokerage provider, showing your interest in the offer. However, we will focus on the online application. There are several brokers that allow the public to subscribe to an IPO completely online. We’ll look at the process of buying an IPO with some of the most popular brokerages in the country.
Note: It is important to hold a Demat account to invest in an IPO. You can register for the IPO using the same Demat account.
How to Apply for LIC IPO on Zerodha
Zerodha is the largest online broker in the country. To apply for the IPO of LIC on Zerodha, you will need to create a Demat account with the broker. You can apply for an IPO through Zerodha using any supported UPI application.
1. Go to console.zerodha.com/dashboard and click on Portfolio then on IPOs.
2. Select the IPO you wish to apply for from the list of open questions.
3. Enter your UPI ID. The platform then checks the validity of the UPI identifier. The user must ensure that the mentioned UPI identifier is associated with his own personal bank account. The IPO application is likely to be rejected if the person applying is different from the one whose bank account is used to apply.
4. In the fourth step, place your bid(s). Select the type of investor for your request. When placing bids, only the quantity that is a multiple of the lot size is allowed. If you want to apply at the cut-off price, just click on the checkbox next to “Cut-off price”. If you wish to place a bid at a different price, you can do so by entering a price in the “Price” field.
5. Once you have completed all of these steps, click the checkbox to confirm that you have read the HPR and other documents and click submit:
6. In the next step, you just have to accept the money order request on your BHIM UPI app.
7. Once you have completed the steps mentioned above, you will receive an SMS from the scholarship confirming your application. Additionally, you can check your order status by selecting the IPO you applied for and you will be able to see the latest updated offers in your application.
How to Apply for an LIC IPO on Upstox
There are two versions of the application, if you use the old versionHere are the steps to apply for an IPO:
1) Log into the Upstox mobile app using your username and password.
2) Enter your year of birth to verify your account.
3) Go to the “Invest” tab in the bottom navigation bar and click on “View ongoing IPOs” in the IPO section.
4) Click on the “Details” button under the widget of the IPO you wish to apply for.
5) Use the IPO details page to browse all company related details.
6) Click the “Place Bid” button at the bottom of your screen.
7) Enter your UPI ID and click ‘Continue’.
8) Enter the lot size and your bid amount and click “Continue”.
9) Confirm the order.
10) You will receive a UPI money order from your bank. Please accept the mandate.
For the New version from the Upstox app:
1) Log into the Upstox app using your 6-digit PIN or biometrics.
2) Go to the “Discover” tab in the navigation bar at the bottom and click on “Invest in IPO” where you will see all current IPOs.
3) Now click on the IPO you wish to apply for where you will see a screen with two tabs – “Overview” and “Timeline”. You can click on it for more information about the IPO or skip and click “Apply” to apply for the IPO.
4) You will now see the IPO application page where all the required details should be filled. Now, to continue, click ‘Continue’.
5) Then enter your UPI ID and click “Confirm”
6) Click on status to check the status of your application and on the same screen you will see a message UPI money order pending payment.
7) Once you have accepted the mandate request, you can check the status of your application under the “Status” tab.
8) You can also view your IPO application timeline with date details
How to buy LIC IPO using Paytm Money
1. Log in to the Paytm Money app and complete your all-digital KYC for stocks, if not already done.
2. Once your details have been verified and the Demat account created, click on the IPO section on the home screen.
3. You will then be able to see a list of past and upcoming IPOs, where you can apply for IPOs open for applications.
4. IPO Application Step 1 – Add details for the auction such as quantity, amount, etc. A maximum of 3 bids is allowed.
5. IPO Application Step 2 – After this you need to enter your UPI ID so that your highest bid funds will be locked. You will receive a warrant for the same on your UPI application.
6. IPO Application Step 3 – Once you have accepted the mandate, your application will be successfully submitted.
7. Once awarded, you will be notified of the status of your award.
How to buy LIC IPO using Groww
1. First, open the Groww app. You can also apply for the IPO on the Groww website. Log in using your account credentials.
2. Click on the IPO tab on the main screen. You’ll see a list of IPOs that are “open now”, which have been “recently closed”, “upcoming IPOs”, and “recently listed stocks”.
3. Under the “Open Now” section, you will see the IPOs that are currently open for subscription. You may also see some IPOs open for pre-application. Click the Apply button of the IPO you wish to subscribe to. Sometimes there will also be a few IPOs which will be open for pre-application around 1-2 days before the start of the actual subscription period.
4. Now you will see two options the number of shares you want to bid and the bid price. The number of shares can be in multiples of the minimum IPO lot size Le, the minimum share limit that must be applied for that particular IPO. For the price, you can choose to bid at the limit price or you can choose any amount within the IPO price range.
5. Enter your UPI ID and continue. You can find your UPI ID on your UPI app (eg Paytm, PhonePe, Google Pay, etc.)
6. 24 hours after the above step, you will receive a warrant request on your UPI application. Approve the payment and you have now applied for the IPO.