Everything You Need to Know About the LIC IPO

[Jason_Castelino]

@ShubhS9

Even for HNI category, application size between 2 lakhs to 10 lakhs, the allotment will now be based on draw if lots

I dont think this is applicable for LIC IPO. Kindly reconfirm.

[Dislodge]

You have explained it so well. Kudos!

[ShubhS9]

@Jason_Castelino

I dont think this is applicable for LIC IPO. Kindly reconfirm.

My bad. This is not applicable for LIC IPO.

[kapil2020]

So For HNI it will be proportinate allotment ? So , as IPO is oversubsribed ,to get sure shot allotment , I shoul apply for 15 lots with 949 price .

[vivek7]

Will the allotment price be fixed higher than 902 if issue is oversubscribed say 3x or higher?

[ShubhS9]

@kapil2020

So For HNI it will be proportinate allotment ?

Yes.

@kapil2020

So , as IPO is oversubsribed ,to get sure shot allotment , I shoul apply for 15 lots with 949 price .

The chances of allotment in HNI category are high due to proportionate allotment. But not 100% guaranteed if the issue is oversubscribed. Please check out this post for a detailed explanation on the process:

Regarding HNI investment in IPO

As per the latest General Information Document (Page 37) issued by SEBI in March 2020, the method for allotment for HNIs (referred to as NIIs) in case of an over-subscribed offer is as follows - 7.5 BASIS OF ALLOTMENT FOR QIBs (OTHER THAN ANCHOR INVESTORS), NIIs AND RESERVED CATEGORY IN CASE OF OVER-SUBSCRIBED OFFER In the event of the Offer being over-subscribed, the Issuer may finalise the Basis of Allotment in consultation with the Designated Stock Exchange in accordance with the SEBI ICDR …

[zerocase]

I’ve bidded in Individual investor category but received this sms:

Ur LICIPO applno. XXXXXX bidded as policyholder is not eligible as per LIC PAN data & RHP. Pls bid in another category,if not bidded already-Kfintech.

Money debited from bank account, should I be worried? What might be the problem?

[ShubhS9]

@vivek7

Will the allotment price be fixed higher than 902 if issue is oversubscribed say 3x or higher?

The price band is Rs. 902 - 949, the price at which shares get alloted at can be any price within this range. However, shares are only alloted if bid price is equal to or greater than price discovered, bids at lower prices are not considered for allotment.

Hence, most people use cut-off option. Selecting the cut-off option while applying for the issue indicates your willingness to subscribe to shares at any price discovered within the price band through the book-building process, eventually increasing the possibility of an allotment. You can check out how the book building process works here.

[suri]

Till what time can i apply to LIC IPO today ?
Can i apply for IPO now and ensure funds are available by end of the day?
@ShubhS9

[ShubhS9]

@suri

Till what time can i apply to LIC IPO today?

You can apply until 6:30 PM.

[viswaram]

Logically speaking why would anyone bid for the lower price band of an IPO if the issue is over subscribed?

[Abhilash_Patil]

For LIC IPO as Retail portion is subcribed nearabout 2x.

What can be the chances of allotment of 1 lot at lower price band 902? just to increase Margin of Safety(MOS) based on Market Conditions.

Any guess, I think probablity is somethings around 90%.

Update on 10 May-

I was Correct, Every Retail Will get IPO Allotment in Case of LIC even at lower price band 902 as 10 Lac Applications got rejected due to various reasons. I also didn’t accept mandate due to low GMP.

Update on 12 May- GMP is -30 Rs and NF at 15850, worst markets.But applied for Venus Steel as got Good Response for this IPO.

[Akash_Shah]

@Abhilash_Patil

Any guess, I think probablity is somethings around 90%.

No chances are very low of it getting at lower price band.

Remember, price band is not only for retail but for entire issue (including QIB and Anchor investors). So Unless subscription numbers are very low, chances of getting shares at lower end are minimal.

[Abhilash_Patil]

Ok, Thanks… Revised my bid to cut off !!!

Update on 10 May- Didn’t Accept Mandate due to very low GMP- 5 Rs

[AmitIyer]

Thank you for sharing the valuable information. Will share this with others too.

[Vij]

I got allotted 78 shares @904

[Ritesh_Agrawal]

Hello,
I got an email stating that shares had been alloted.

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Status

Congratulations - Successful allotment

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But no money had been deducted from my account and also got SMS from bank that

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Dear Customer, your account has been unblocked by an amount of INR 13560.00, against the UPI one-time mandate-ICICI Bank.

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I fail to understand, can someone clarify this.

[ShubhS9]

@Ritesh_Agrawal

Hello,
I got an email stating that shares had been alloted.

==============

Status

Congratulations - Successful allotment

==============
But no money had been deducted from my account and also got SMS from bank that

============
Dear Customer, your account has been unblocked by an amount of INR 13560.00, against the UPI one-time mandate-ICICI Bank.

============

I fail to understand, can someone clarify this.

Sometimes, due to technical issues from your bank’s end, the UPI mandate might fail even if you have received the IPO allotment.

The registrar shares an allotment file with the banks based on which funds are debited from the account. In case the bank is facing technical issues, it will re-attempt the debit. The onus is on the bank to ensure that funds are debited from your bank account and given to the issuer’s bank.

Even if your funds aren’t debited, the shares credited to your demat account will be available for selling on the listing date.

[Elbis]

My friend applied for 210 shares under the policy holder quota and was allotted 48 shres. Can anyone explain the maths behind it?

[Walker]

I applied for 10 lots for LIC IPO which is 150 shares, and I have received allotment of only 58 shares why allotment is not in lot size like all other IPO’s