LIC initial public offering (IPO) will be the biggest that the country has ever seen in terms of valuation. The sheer size of the issue has created a huge hype around the IPO. The govt plans to raise Rs 20,557 crore through the issue by just giving up a 3.5 percent stake. Also Read - LIC IPO: Top apps to invest in India’s biggest IPO
The process of bidding on the IPO has begun and there’s a lot of interest shown even by first-time investors. Many of these investors will also be opening Demat accounts for the first time in order to subscribe to LIC IPO. The bidding process begins at 10AM on May 4 and it will go on till May 9. Also Read - Ola reportedly looking to launch IPO early next year: Details here
What is an IPO?
An IPO happens when a private company decides to go public on a share market. 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 essentially two ways to apply for an IPO, in the offline method you will need to fill out an IPO form to your brokerage provider, showing interest in the bid. However, we are going to focus on the online application. There are multiple brokers who allow the public to subscribe to an IPO completely online. We will take a 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 subscribe to the IPO using the same Demat account.
How to Apply for LIC IPO on Zerodha
Zerodha is the biggest online stockbroker in the country. In order to apply for LIC IPO 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 app.
1. Visit console.zerodha.com/dashboard and click on Portfolio and then IPOs .
2. Select the IPO you want to apply for from the list of open issues.
3. Enter your UPI ID. The platform then check for the validity of the UPI ID. The user should make sure the mentioned UPI ID is mapped to their own personal bank account. The IPO application is liable to get rejected if the person who is applying is different from the one whose bank account is used to apply.
4. In the fourth step Place your bid(s). Select the investor type for your application. While placing the bids, only quantity that is a multiple of the lot size is allowed. If you wish to apply at the cut-off price, simply click on the checkbox next to ‘Cutoff-price’. If you want to place a bid at a different price, you can do so by entering a price in the ‘Price’ field.
5. Once you’ve completed all these steps, click on the checkbox to confirm that you have read the RHP and other documents and click on submit:
6. In the next step, you just have to accept the mandate request on your BHIM UPI App.
7. Once you have completed the above-mentioned steps, you will receive an SMS from the exchange confirming your application. Additionally, you can check the status of your order by selecting the IPO you have applied for and you’ll be able to see the last updated bids in your application.
How to Apply for LIC IPO on Upstox
There are two versions of the app, if you’re using the old version, these are the steps to apply for an IPO:
1) Log in to the Upstox mobile app using your User ID and Password.
2) Enter your birth year to verify your account.
3) Go to the ‘Invest’ tab from the bottom navigation bar and click on the ‘View ongoing IPOs’ from the IPO section.
4) Click on the ‘Details’ button below the widget of the IPO you want to apply for.
5) Use the IPO details page to go through all the company-related details.
6) Click on the ‘Place Bid’ button at the bottom of your screen.
7) Enter your UPI ID and click on ‘Continue’.
8) Enter the lot size and your bid amount and click ‘Continue’.
9) Confirm the order.
10) You will receive a UPI mandate from your bank. Please accept the mandate.
For the new version of Upstox app:
1) Login to the Upstox app using your 6-digit Pin or Biometrics.
2) Go to the ‘Discover’ tab from the navigation bar at the bottom and click on ‘Invest in IPO’ where you will see all ongoing IPOs.
3) Now, click on the IPO you wish to apply for where you’ll see a screen with two tabs – ‘Overview’ and ‘Timeline’. You can click on these for more information on the IPO or skip and click on ‘Apply’ to apply for the IPO.
4) You will now see the IPO application page where all the required details need to be filled. Now to proceed, click on ‘Continue’.
5) Next enter your UPI ID and click on ‘Confirm’
6) Click on status to check your application status and on the same screen you will see a UPI Mandate payment pending message.
7) Once you accept the mandate request, you can check your application status under the ‘Status’ tab.
8) You can also check the timeline for your IPO application with date details
How to buy LIC IPO using Paytm Money
1. Log in to the Paytm Money app and complete your fully digital KYC for stocks, if not done already.
2. Once your details are verified and the Demat account is 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 that are open for applications.
4. IPO Application Step 1 – Add details for bidding such as quantity, amount, and so on. Maximum 3 bids are allowed.
5. IPO Application Step 2 – After that, you have to enter your UPI id so that the funds of your highest bid are blocked. You will receive a mandate for the same on your UPI app.
6. IPO Application Step 3 – Once you accept the mandate, your application will be successfully submitted.
7. Once the allotment happens, you would be notified about your allotment status.
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 will see a list of IPOS that are ‘Open Now’, that 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 that are open to pre-apply. Click on the Apply button for the IPO that you wish to subscribe to. At times there will also be a couple of IPOs that will be open for ‘pre-apply around 1-2 days before the actual subscription period begins.
4. Now, you will see two options the number of shares you wish to bid for and the bid price. The number of shares can be in the multiples of the minimum lot size of the IPO Le, the minimum limit of shares one needs to apply for that particular IPO. For the price, you can choose to bid at the cutoff price or you can choose any amount in the price range of the IPO.
5. Enter your UPI ID and continue. You can find your UPI ID on your UPI app (for example Paytm, PhonePe, Google Pay, etc.)
6. 24 hours after the above-mentioned step, you will receive a mandate request on your UPI app. Approve the payment and now you have applied for the IPO.