The ease of the IPO process has resulted in an increased number of companies choosing that route over the traditional private placement route. As the process has become easier, it has also become more popular and has seen a significant increase in companies going public. For example, 2018 was the 5th straight year that the number of IPOs surpassed the number of private placements, showing that the IPO route is the most efficient and effective way to raise capital.
The government, and the stock market in general, are both very concerned about the ease with which companies can raise funds. Many new investors are seeking to be involved in the Indian market as it is one of the best-performing markets globally. The current economic situation in India is also very positive, and there is a great demand for new IPOs. Similarly, India’s biggest life insurer is coming up with its IPO.
Now the question in your mind must be How to apply for an Initial Public Offering (IPO) of a Life Insurance company in India? So, the answer to it is very easy.
To apply for LIC IPO, the retail investors need to follow the particular steps:
- The application form is available on bseindia.com. Download the form.
- To submit the application form. Enter your UPI ID in it and submit the form.
- You will receive a request on your UPI app for locking the required fund in your account. Accept the request.
- The amount will be locked in your account till the allotment process. If you get the IPO allotment, the amount will get deducted automatically. If you are not lucky to get the allotment, the locked amount will get released.
The policyholders can apply for LIC IPO under the ‘Policyholder Reservation Policy’ in these steps:
- The first step is to link the LIC policies with their PAN Card. The deadline to link the documents is 28 February 2022.
- The Indian policyholders have 10% reservations for the IPO. If you are a policyholder, you can apply for the public offering from your Demat account linked with your PAN card. And apply online like other investors.
How to Apply for an IPO Online?
Today, If I ask you to do any work, you can do it by buying vegetables, booking a flight or trading, or applying for an IPO. There’s nothing that you can’t do online; every work has its different process or way of happening.
Similarly, when it comes to applying for an IPO, the process to it is in the following way if you have a Demat account:
- Install the trading application.
- Register to it. Enter the details like Date of birth, Phone number, PAN number, Account number, email address, etc.
- After logging in to the trading platform, select the LIC IPO section.
- Fill in the information needed, like the number of lots and price according to your choice, research, and financial capabilities.
- The next step will guide you towards the payment part. You must have a UPI ID, enter the UPI, and click on submit. That is how you will place your bid online.
What are the Tricks to Increase your Chances to Get an IPO Allotment?
- To increase your chances of winning any IPO allotment, bid for it as early as possible.
- Bidding maximum from one account is not the right option. Bid from multiple accounts and increase your chances of getting the allotment.
- Apply for the IPO at a higher price or the cut-off price.
- Try to avoid technical rejections while bidding for an IPO.
What Technical Rejection Can You Face While Placing an IPO Bid?
The rejections are the reason for not getting an IPO allotment and avoiding it. You need to know what these technical problems are to avoid them.
- One can submit only one application from one PAN card if the firm gets more than one card. The application will get rejected.
- Fill in incorrect information that does not match your account details and the PAN number. Check the information twice before applying.
- Don’t forget to choose the type of investor you are in your application form. You will receive the confirmation message from the exchange.
- Transaction issues also count under technical issues. Unavailability of needed amounts in your bank account may be one of the reasons for rejection.