As you said Sir application process will remains the same it means while applying for the ipo we have to put the cut off price of Rs 949 In the bid section as usual… … Right Instead of Rs 902 as the higher price band for retail investors after deducting the Rs 45 discount.
But During the e mandate process it will be adjusted to Rs 904 per share for retailers… So the amount blocked for 1 lot will be 13560 …Right…
Generally IPOs remain open for 3 days for subscriptions…
But in case of LIC IPO why is it open for 4 days… Is the rules changed or is specially for LIC ipo?
1.Why only for retail category : it is : Draw of lot and for others proportionate ?
2.If I want to make 2 bid with retail and HNI from single pan …Can I ?
3.If HNI portion oversubscribed,even then will I be alloted atleast 15 shares (1 Lot) as it is proportionate ?
I’m a LIC policyholder and I’d like to apply for 3 lots.
As the policyholder allotment is proportionate basis. Should I apply one bid with 3 lots (i.e., 45) at cut off price or should I apply three bids with one lot each at cut off price? Which one’s better??
The price band for LIC IPO is set between 902 - 949, you can bid at any price point within this range. However, as the issue is over subscribed it is best to place bid by selecting cut-off option for better chances of allotment.
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:
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.