How To Apply For Lic Ipo?
The Initial Public Offering (IPO) from the Life Insurance Corporation of India (LIC) has been one of the most keenly awaited financial events in 2022. Likely to open on 4 May 2022, the LIC IPO is easily going to be the biggest IPO India has ever seen and likely to be one of the largest in the global insurance industry.
As with all IPOs, the LIC IPO will have the usual investor categories such as retail individual, non-institutional investor, qualified institutional bidder, and anchor investor. However, it will also have another interesting category – policyholders. Yes, anyone who holds a LIC policy or scheme will be entitled to apply for LIC share allotment under a separate category.
The numbers behind LIC’s IPO Since LIC has two-thirds of the Indian market share, it is very likely that you will have a LIC policy. If so, you should definitely find out how you can invest in LIC in 2022. If a preference in share allotment is not attractive enough, let us also look at the sheer size of LIC and its IPO for good measure.
- With over 3000 offices across the country and nearly 30 crore policies, LIC is expected to be valued at around Rs 8-10 trillion.
- Even a sale of 5% of its value is enough to make it the largest IPO in India.
- The insurance major holds assets to the tune of $511 billion and has over 100,000 employees and 1.2 million agents.
It has time and again bailed out struggling state-owned businesses. Over the past year, investors have shown a keen interest in IPOs. More than $10 billion was raised through IPOs in India till October 2021. More interest is expected to be generated when a pan-Indian brand like LIC goes public.
Issue opens = 4 May 2022Issue closes = 9 May 2022Issue price = ₹902 to ₹949 per equity shareBid lot = 15 equity shares and a multiple of 15 equity shares thereafterAllotment date = Tentatively Friday, 13 May 2022IPO size = ₹20,557.23 croreListing Exchanges = BSE, NSERatios = QIB 50% – Retail 35% – NIB 15%
How LIC policyholders can apply? The government has earmarked 10% of the issue size to LIC policyholders. If you are one, you can apply under the policyholder category as well as the retail investor category. Later, you can pick one allotment out of the two applications.
There will be an individual investment limit of Rs 2 lakh under the policyholder category. There are expectations of even a discount on the base price under this category. Getting an allotment under your IPO application is not a given. In most oversubscribed IPOs, applicants either see their applications rejected or allotments made on a pro-rata basis only.
With a separate investor category, the chances of getting an allotment increases for LIC customers. Let us see in detail how an existing LIC policyholder can apply for the LIC IPO. LIC policy, PAN, and KYC updates Firstly, you have to go here,
Fill in the necessary details. This includes your policy number, date of birth, PAN, gender, email address, mobile number, etc. Tick the box containing the declaration and acceptance of the PAN linking.An OTP will be generated upon clicking the ‘Get OTP’ button. Once you enter the OTP and submit it, your LIC policy account will get linked.
If your KYC information has not been updated against your LIC policies, you can do so by going here,
Click on eServices and select the ‘KYC update’ option.Upload the latest KYC documents and await verification by LIC. Once verified, your LIC policy will be updated with the latest KYC information.
Not sure if your PAN is already linked with your LIC policies? You can check the same by going here,
Head over to the PAN linking status section on the website.Enter your policy number along with the information required (date of birth and PAN).Enter the captcha code and hit the submit button. Your linking status will be displayed on the screen.
You can also take the support of your LIC agent to get this done. Getting a Demat Account You will need a Demat Account if you wish to apply for the IPO. You can open a Demat Account with a depository participant (DP). A list of registered DPs is available online on the NSDL and CDSL websites.
To open a Demat Account, you will have to provide your PAN, address proof, cancelled cheque, photograph, and fees as applicable. An HDFC Bank DigiDemat Account can be easily opened through online verification, KYC submission, and e-signing. There is no account opening charge or paperwork involved. Investors can apply for the IPO and trade at minimal brokerage charges.
By linking your HDFC Bank DigiDemat Account to your HDFC Bank Account, you get a seamless investment experience in the stock market, as well as currency and commodity trading. Click here to get started in opening your Demat Account now! The IPO application process You will need to visit your profile created on the DP’s platform.
The exact navigation for applying to the LIC IPO may vary from platform to platform. But typically, you will be looking for the IPO listing on the platform. While there, select LIC IPO and look for the Policyholder category. Simply enter your details and make a bid. Once you submit your bid, you will receive a mandate from the sponsor bank.
Your application process will be complete once you accept the mandate. Last words LIC’s IPO launch is expected to be an important event in the country’s financial calendar this year. Those who wish to invest in LIC shares should closely watch the various updates as they come out in the days leading to the offering of the IPO.
- LIC customers, on their part, should get their policy, PAN, and KYC updated and have their HDFC DigiDemat Account in place.
- The LIC IPO has attracted keen interest from both investors and LIC customers, and with good reason.
- We hope that with this information, you will be adequately prepared to apply for the LIC IPO when the big day arrives.
*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in securities market are subject to market risks, read all the related documents carefully before investing.
- 1 What is required to apply for LIC IPO?
- 2 Can NRI apply for LIC IPO?
- 3 What is the share price of LIC IPO?
- 4 Can I apply IPO directly from bank account?
- 5 Is LIC valid outside India?
- 6 Should I stay invested in LIC IPO?
- 7 Can we sell LIC IPO after listing?
- 8 Can I buy IPO without broker?
- 9 What is the minimum amount to invest in IPO?
Can we apply LIC IPO online?
The Bottom Line – While the exact date for the IPO is not known yet, every investor with a Demat account and valid PAN card can apply for the IPO. Existing LIC policyholders may get a preferential status as the finance ministry proposed that 10% of the IPO be reserved for them.
This basically means that if you are an existing policyholder, your chances of getting the allotment become a little higher. To facilitate this, it is crucial to open a Demat account in your name (if you already don’t have one) and link your PAN number to your LIC policy to apply for the IPO whenever it opens.
The process is online, simple and quick. What else can you ask for!
What is required to apply for LIC IPO?
With the LIC IPO likely to open in the first half of March 2022, so as to enable LIC to list before the end of March, grand plans are already afoot. One of the important drivers for LIC IPO subscription will be the over 24 crore policyholders of LIC. For generations, LIC was the first port of call to put surplus money as soon as a young man or woman started earning.
This has created a brand that is not only top-of-the-mind but also recognizable and almost synonymous with trust and long term commitment. Being one of their largest captive customer base, LIC is obviously offering extended privileges to its policyholders in the form of an assured quota of 10%, discounted price for policyholders and a very simple and elegant IPO process flow.
The level of interest and enthusiasm among policyholders is quite high when it comes to investing in the LIC IPO.1. Demat account is mandatory to apply for LIC IPO Under the extant SEBI guidelines, any cash market investment, whether in IPOs or in the secondary markets has to be mandatorily done through a demat account with a registered depository participant (DP) only.
- Such DPs can be either affiliated to the NSDL or CDSL.
- There will be no issue of shares of LIC IPO in physical form, so demat account is a must.2.
- Is demat account sufficient or trading account is also a must? Currently, the trading account is used to execute orders in equities, futures and options while demat account holds your assets like IPOs, secondary market equities, ETFs, bonds etc.
For applying for an IPO, only demat account is mandatory, not trading account. However, you do need a trading account for selling the shares. Nowadays, brokers open trading cum demat account, so as well open both accounts simultaneously.3. Conditions for policyholder eligibility and lock-in period To be eligible for applying in the LIC policyholder quota, the individual investor must be an existing policyholder of an active LIC policy with ideally all premiums regularly paid.
This quota will only apply to the individual policyholders of LIC. This quota does not come with any lock-in period so investors are technically free to sell even on the day of listing.4. Minimum and maximum investment sizes for LIC IPO There will be a minimum number of equity shares to be applied under the offer in all categories and the retail lot size will be applicable for the LIC IPO policyholder quota also.
Applications can be made in the minimum lot size and in multiples thereof. The maximum investment will be subscribed by the retail quota of Rs.200,000 applicable currently.5. Can policyholders apply under NII / RIB quota beyond Rs.2 lakhs? The maximum bid amount is limited to Rs.200,000 for the policyholder quota.
- However, eligible policyholders can also apply for equity shares under the Non-Institutional Bidders category for additional amount of up to Rs.200,000 or even beyond that.
- The quantum of policyholder discount is yet to be decided.6.
- Applying for the LIC IPO in the case of joint policies In the case of joint policies, any one of the joint applicants can apply for equity shares under the Policyholder Reservation Portion category.
However, prior to that, the PAN number of the applicant bidding in the offer must be updated in the policy records. The applicant must also have a demat account and in the case of joint accounts, the applicant must be first holder. Only persons residing in India at the time of the IPO can invest in this quota.7.
Lapsed policies and eligibility for policyholder quota in IPO Any policy that has not exited the records of LIC due to routine reasons like maturity, surrender or death of the policyholder can still avail reservation under Policyholder Reservation Quota. However, in the case of lapsed policies, you need to first check with LIC office if the policy is still in the records or whether it has been removed.
For new policies, such policies must have been issued before the date of filing of the DRHP.8. Linking PAN to the LIC Policy This is perhaps the most important step to be eligible for applying in the Policyholder quota for the LIC IPO. LIC has provided a simple and elegant option on the LIC website i.e.
Https://linkpan.licindia.in/UIDSeedingWebApp/ to update PAN. You need to update PAN number, policy number, mobile number and email ID at the interface. In case you are not able to do it online, you can even approach the nearest LIC office to update the records with your PAN number. Ensure that the PAN is the same as the one being used for applying in the IPO.
It is captcha based and also OTP verification based.9. Updating KYC details of the LIC Policy To be eligible for smooth application and allotment under the policyholder quota, the KYC details of the LIC policy must be updated. This includes updating of address, contact number, email id etc.
Even the updating of KYC details pertaining to your LIC policies can be done on the LIC website i.e. https://licindia.in itself. In such cases, latest documents must also be uploaded to support KYC updates. Once LIC verifies the documents, the details are updated in the LIC policy master.10. Unsure of whether you have linked LIC policy and PAN Before applying for the IPO, it is always a good idea to thoroughly verify that the linking of PAN and your policy document is already done.
This status can be checked on the LIC website at https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus by submitting basic details like policy number, date of birth, PAN number and the captcha code. Once it is verified, you can be doubly sure that you are all set to go ahead with the PAN based application for the LIC IPO under policyholder quota.11.
Applying for LIC policyholder quota, if you don’t have PAN PAN card is mandatory for you to be eligible to apply under the policyholder quota for the LIC IPO. Hence, if you have not yet applied for PAN card, you can do so online right away either at UTITSL or at NSDL links. In case you need the PAN to be issue quickly, you can apply online for e-PAN.
Please note that LIC will not accept applications where valid 10-digit PAN number is not updated. In all these endeavours, you can also seek the help of LIC agents.12. Eligibility of group policies for policyholder quota All individual policies, other than group policies, will qualify for bidding in the Policyholder Reservation Portion.
- This also applies to annuities which have already commenced as of the date of filing the DRHP.
- However, if you are just the beneficiary of the policy after the death of the policyholder, then you are not eligible to apply in the policyholder quota.13.Guarantee of allotment in the policyholder quota There is no guarantee of allotment in the policyholder quota.
The DIPAM has indicated that around 10% of the total offer size would be reserved for eligible policyholders. However, the allotment within this policyholder will be subject to competitive bidding and will depend on the demand in the bidding process. Oversubscription will result in proportionate allotment.14.Minimum policy size, minimum premium requirement for IPO eligibility As per the DRHP filed for LIC IPO, all eligible policyholders irrespective of the premium amount or sum assured or the number of policies held will be treated at par.
A person with a single policy and paying a small premium and another person with a large number of policies and paying a hefty premium, will both be treated at par. In both cases, the equity shares under the policyholder quota will be allotted on a competitive bidding basis only.15. Last date for updating the PAN in policy records There has been no last date that has been communicated for updating the PAN number in the policy document.
However, it is suggested that it is done at the earliest to avoid last minute rush where typical server problems and traffic related issues could delay your updating of PAN.
Can NRI apply for LIC IPO?
LIC IPO: Can NRI policyholders apply for discounted shares? Check here LIC IPO: Can NRI policyholders apply for discounted shares? Check here New Delhi : Since its announcement, the pub offering of the Life Insurance Corporation of India (LIC) has garnered much attention and has been making headlines, with the latest update being the filing of the draft red herring prospectus with the Sebi on February 13.
According to the insurance company’s filing, it has set aside up to 10 per cent of the shares for its policyholders under the Policyholder Reservation Portion. Along with this, LIC aims to offer a discount to these investors as well. However, this leads us to the question whether policyholders or other policyholders residing out of India can apply under Policyholder Reservation Portion or not.
As per the FAQ section in the LIC DRHP, “Whether NRI policyholders or other policyholders residing out of India can apply in the Offer? No, only resident Indians can apply.” So, basically, one needs to be residing in India during the Bid/Offer period to be eligible for applying in the Offer.
Other key things NRI policyholders should know Bids by Eligible NRIs: LIC’s DRHP filed with Sebi states, “NRI(s) from jurisdictions outside India where it is not unlawful to make an Offer or invitation under the Offer and in relation to whom the ASBA Form and the Red Herring Prospectus will constitute an invitation to subscribe to or to purchase the Equity Shares”. Bidding amount: Bids by Eligible NRIs for a Bid Amount of less than Rs 200,000 would be considered under the Retail Portion for the purposes of allocation and Bids for a Bid Amount exceeding Rs 200,000 would be considered under the Non-Institutional Portion for allocation in the Offer, according the filing. Eligibility and Selling and Transfer Restrictions: NRIs who have received the preliminary offering memorandum for the offer, which contains, among other things, the selling restrictions for the offer outside India are eligible to bid for equity shares. “No person outside India is eligible to Bid for Equity Shares in the Offer unless that person has received the preliminary offering memorandum for the Offer, which contains, among other things, the selling restrictions for the Offer outside India,” read the LIC filing. NRI bidders using Non-Resident Forms: Any eligible NRI bidder using the Non-Resident Forms should authorise their SCSBs or confirm or accept the UPI Mandate Request accounts to block their Non-Resident External (“NRE”) or Foreign Currency Non-Resident (“FCNR”) accounts.
NRI bidders using Resident Forms: Eligible NRI Bidders using the Resident Forms should authorise their respective SCSBs or confirm or accept the UPI Mandate Request accounts to block their Non-Resident External (“NRE”) or Foreign Currency Non -Resident (“FCNR”) accounts.
When can I purchase LIC IPO?
India’s largest IPO will happen on May 4th, with a closing date of May 9th. The anchor investment opens on 02 May 2022. The central government was originally slated to sell about 5% of its stake, but it brought the share sale down to 3.5%. The price range for equity shares is Rs 902 to Rs 949.
How to purchase IPO online?
How to Apply for IPO through UPI? – The process of investing in IPO through UPI is straightforward: Step 1: Log in to your trading account and select the IPO that you want to invest in. Step 2: Enter the price at which you want to apply for shares and the number of lots.
How many times can I apply for LIC IPO?
LIC IPO: Can LIC Policyholder Apply for More than One Category? What will be Maximum Bid? LIC IPO: Everyone seems to be wanting a piece of the insurance behemoth, () of India, through the ongoing subscription process of its initial public listing (IPO).
The IPO of the country’s largest life insurance company LIC has subscribed 1.66 times, garnering bids for 26.83 crore equity shares against IPO size of 16.2 crore shares, on May 7, the fourth day of bidding. The portion set aside for retail investors has been subscribed 1.46 times, employees 3.54 times and policyholders 4.67 times, while qualified institutional buyers bid 67 per cent shares of allotted quota and non-institutional investors 108 per cent.
The Government of India is selling 3.5 per cent or 22.13 crore equity shares through an offer for sale of Life Insurance Corporation of India. More than Rs 5,600 crore has already been raised from the anchor book on May 2. The opened for subscription on May 4 and will close on May 9.
The issue will be open for retail investors for bidding on Saturday, May 7, as well as on Sunday, May 8. The company’s shares will be listed on both the NSE and the BSE, likely on May 17. The IPO price band has been fixed at ₹902–949 per share. The offer closes on 9 May and investors can bid on 7 May, a Saturday, too.
The bid lot size is 15 equity shares and in multiples thereof. Who can Bid for LIC IPO? Anyone who has a demat account and a PAN can bid for the LIC IPO. The company has allotted as much as 35 per cent of the total shares for the retail category, under which policyholders get 10 per cent, general retail investors get 24.3 per cent and employees get 0.7 per cent of the shares.
- While employees and retail investors get a discount of Rs 45 each, LIC policyholders are eligible to get a discount of Rs 60 per equity share.
- It must also be noted that to qualify for the LIC policyholder category, one has to link their PAN to LIC policy as of February 28 this year.
- Are You An LIC Policyholder Who Doesn’t have PAN Linked to Policy? Yes, policyholders who have not fulfilled the above-mentioned requirements can still apply.
However, you will not be eligible under the portion reserved for policyholders. You’ll have to apply through the retail investors’ quota. LIC IPO: What is the Maximum Amount Policyholders Can Bid For? Investors can bid for a minimum of 15 shares and in multiples of 15 thereafter, to subscribe to the LIC IPO.
- This means that you can bid for 15, 30, 45, 60 shares and so on.
- However, the LIC has set a maximum amount of Rs 2 lakh for retail investors, policyholders and employees.
- A policyholder will be able to bid for only 14 lots.
- Here is the calculation: Rs 889 (which is Rs 949 minus discount of Rs 60) multiplied by 15 (minimum number of shares) adds up to Rs 13,335 (for one lot).
Thus, when we multiply Rs 13,335 by 14, it brings us to Rs 1,86,690. After adding another lot, the amount becomes Rs 2,25,000 which is above the limit. Can an Investor Use Multiple Trading Accounts? No. An investor cannot apply for LIC IPO using multiple trading accounts if the maximum limit is already reached.
- It will be rendered invalid.
- However, a retail investor can bid for up to Rs 6 lakh in the LIC IPO if he or she qualifies as a policyholder, employee and a general retail buyer.
- Can a policyholder apply more than 1 one application in LIC IPO? Yash Gupta- Equity Research Analyst, Angel One Ltd, explained that “Policyholders who have linked their pan number with the LIC policy will be eligible for the policyholder discount.
If an investor has more than one LIC policy, they also can apply for one application in the policyholder category. A retail investor who is also a policyholder can apply for two IPO applications, one in the policyholder category and another one in the retail category so that retail investors will be eligible for policyholder discount and retail investor discount.” Can You Bid For The LIC IPO Under Multiple Quotas? While most people may be able to apply for the LIC IPO only under one of the categories, if you happen to be connected with LIC—as an employee or policyholder or both—you can be an applicant under three separate categories, if you want.
That is, you can place a bid under the portions reserved for employees, policyholders and retail or non-institutional investors (one of the two). Note that, if you make an application both under the retail and non-institutional portion, they will be considered as multiple bids and both will get rejected.
Read all the, and here. : LIC IPO: Can LIC Policyholder Apply for More than One Category? What will be Maximum Bid?
What is the maximum amount to apply for LIC IPO?
How to apply for LIC IPO via multiple categories – Paytm Money Blog The much-awaited LIC IPO will be live from May 4th-9th. The IPO is the talk of the town, since it is the biggest public offering ever in the history of the Indian stock market. You can apply through more than one category to maximize your allotment chances, based on your eligibility.
Details of the LIC IPO: Price Band: Rs 902 – Rs 949 Issue size: Rs 21,000 crore Discount for Retail investors – Rs 45 Discount for Policyholders – Rs 60 Discount for Employees – Rs 45 Next, let’s take a look at the various categories: Policyholders
Life Insurance Corporation (LIC) has reserved 10% of its IPO size for policyholders. The limit for an application under the policyholder category is Rs 2 lakh. Retail investors LIC has reserved 35% of its IPO size for retail investors. Under the retail category, investors can apply up to Rs 2 lakh.
Non-institutional investors (NIIs) and HNIs This category includes individuals, companies, Hindu Undivided Families (HUFs) and other institutions who want to invest more than Rs 2 lakh in an IPO.15% of the LIC IPO’s issue size is reserved for NIIs. High net-worth individuals (HNIs) are allowed to apply up to Rs 5 lakh in an IPO using the UPI mode.
If you wish to invest more than Rs 5 lakh, you would still need to apply via NetBanking, if your bank supports it.
|Category||Discount /share||Range||Who can apply?|
|Retail||Rs 45||Upto Rs 2 lakh||Everyone|
|HNI||0||Rs 2 lakh – Rs 5 lakh||Everyone|
|Policyholder||Rs 60||Upto Rs 2 lakh||Applicable for LIC IPO and if you have linked PAN number to LIC Policy. ( )|
|Employee||Rs 45||Upto Rs 5 lakh||Only employees of the company going for IPO|
Applying under multiple categories Steps to apply for any category in IPO:
Click on the IPO of choice Go to the details page of IPO Select the category Click Apply Fill in the Bid details Submit your application
If you want to apply under more than one category, you will have to make separate applications each time. Do note that you can either apply under retail or HNI category depending on your investment aptitude, but not in both.
|Retail + Policyholder category||
You should have a LIC policy with the same PAN as that of your Demat account of Paytm Money. You should have linked your PAN to LIC Policy before 28 Feb 2022. Policyholder application is over and above Retail application.
|HNI + Policyholder category||
Minimum investment amount for HNI category is Rs 2 lakh You should have a LIC policy with the same PAN as that of your Demat account of Paytm Money. You should have linked your PAN to LIC Policy before 28 Feb 2022. Policyholder application is over and above HNI application.
|HNI + Policyholder + Employee category||
You should have linked your PAN to your LIC policy before 28 Feb 2022. You should be an employee of LIC to apply in Employee category Employee and policyholder applications are over and above HNI applications.
|Retail + Policyholder + Employee category||
You should have a LIC scheme with the same PAN as that of your Demat account of Paytm Money. You should have linked your PAN to your LIC Policy before 28 Feb 2022. You should be an employee of LIC to apply in the Employee category. Employee and policyholder applications are over and above retail applications.
Conclusion Do take a look at the details of all the categories and decide which one works best for you. You can read more about the investor categories in our, “Disclaimer – Investment in securities market are subject to market risks, read all the related documents carefully before investing.
LIC IPO Details
|IPO Date||May 4, 2022 to May 9, 2022|
|Listing Date||May 17, 2022|
|Face Value||₹10 per share|
|Price||₹902 to ₹949 per share|
|Lot Size||15 Shares|
Can I apply IPO directly from bank account?
Is it possible to apply for an IPO without using UPI? – An IPO application can be submitted via net banking ASBA service offered by the bank, even without using UPI. To learn more about ASBA, see What is ASBA? The required details for the application are as follows:
Demat ID: Demat Id is a 16-digit number used to identify a demat account, and it is unique for every client. The demat ID can be found by visiting console.zerodha.com/account/demat. Depository: CDSL. DP Name: Zerodha.
To learn more, visit tradingqna.com/t/how-to-apply-for-an-ipo-with-your-zerodha-account/10597/2 Zerodha suggests using the UPI ASBA process to apply for IPOs from Kite, as all the client details are already mapped, and only the bid and UPI ID need to be entered. To learn more, see How to apply for an IPO and how to stay informed of new ones? Still need help? Create a ticket × ×
What is the time limit for ASBA?
ASBA IPO Timing – Banks allow ASBA IPO application while the IPO is open for subscription. The online IPO applications are available starting at 10 AM on the issue open date till 5 PM on the issue closing date. But most banks only provide this facility till 2 PM or 3 PM on the last date. Check for more detail.
Is LIC valid outside India?
What happens to my LIC if I move abroad? » What happens to my LIC policy if I move abroad? If an NRI has taken an LIC policy as a resident Indian while he was in India and later moved abroad, what will happen to his/her LIC policy when his residence status changes to NRI? If you are an NRI and recently left India for abroad and now worrying what should you do with the LIC policy you have taken in India.
Would the policy still remain beneficial for you, so this blog is meant for you. When you acquire NRI status, you should inform the LIC of India through your servicing branch about the change of residence status. You can inform it through an email or write a letter, mentioning your policy number and attaching copy of your passport and visa.
Please watch the video for complete details on what you should do with the LIC policy you have taken as a resident Indian. As an NRI you are eligible for GST exemption on the premium amount. Please contact your servicing branch to avail the same. As far as the benefits of the policy are concerned, be it the death benefits or maturity benefits, money back or any other benefits or terms & condition of the policy, everything would remain the same.
You should continue to pay the remaining premiums on schedule. Please ensure the policy never gets lapsed as it is little tedious process for an NRI to revive his/her lapsed policy. If you want to take a new plan as an NRI, please call Mr. Sukhdeep Komal at Mobile/Whatsapp +91-9230091000 or submit the form on the right to get in touch! FAQ (Frequently Asked Question Q.
Is your Life Insurance valid if you move abroad? A. Yes, the life insurance policies taken in India will remain valid if you move abroad later. You receive all the policy benefits as it is and terms & conditions of the policy remain the same.Q. Does LIC cover death outside India? A.
- All the LIC policies cover death irresective of the death happened in India or abroad provide the policy is in-force.
- Hence, keep you policy in in-force mode and pay your premiums on time to avoid lapsation.Q.
- What happens to your LIC insurance policies when you give up the citizenship of India?? A.
- NRIs when take citizenship of another country are called FNIO (Foreign National of India Origin), so when an FNIO has an LIC policy taken as a resident Indian or as an NRI, the terms & conditions remain the same, however, he/she should inform LIC of India about the change of citizenship and should also submit his OCI card.
: What happens to my LIC if I move abroad?
Can NRI pay LIC policy in India?
Are NRIs allowed to Buy Insurance Plans in India? – Yes, all NRIs are eligible to buy insurance plans in India; including the people who have become citizens of foreign countries and their children as well i.e. PIO (People of Indian Origin). The Foreign Exchange Management Act allows all NRIs to invest in insurance policies in India.
How can NRI apply for IPO in India?
How can NRI apply for IPO in India? – No special approval is required from the RBI for NRIs to buy or sell IPO shares in India. NRIs can complete the IPO investment-related bank transactions through Non-PIS savings bank account. You can invest in an IPO in India online using a 3-in-1 NRI Account for Non-Resident Indians with a bank in India.
- NRIs can refer to the Red Herring Prospectus of the company going public to check their eligibility to invest in its IPO.
- Banks like ICICI Bank don’t offer online IPO to NRI customers.
There are two categories for eligible NRIs to invest in IPOs in india:
Retail Individual Bidders
NRI investors can bid for equity shares for an amount not exceeding Rs.200,000 (less retail discount if any).
NRI investors can bid for equity shares less than the offer size, subject to applicable limits. Note:
- NRIs can invest in IPO in India only in Indian Rupee or freely convertible foreign exchange.
- NRI investors bidding on a repatriation basis should bid through blue color NR IPO Application Forms and authorize their Self-Certified Syndicate Bank to block their NRE or FCNR accounts.
- NRI investors bidding on a non-repatriation basis should bid through white color resident IPO Application Forms and authorize their Self-Certified Syndicate Bank to block their NRO accounts for the full bid amount.
To ask any question related to NRI investment in India, you can download SBNRI App from the Google Play Store or App Store. You can also use the SBNRI app for investment in stock market/ mutual funds, Pre-IPO, Asset Finance, Commercial Real Estate, Indian Startups Funds, NRI account opening, etc.
Should I stay invested in LIC IPO?
“Those who have invested, those who have come to the markets for the first time through this IPO have no reason to panic. Maybe a year or two down the lane, they would definitely see some kind of returns on this stock because the business also picks up in the coming years as Covid restrictions go away.” – ETMarkets.com “Stay invested. Maybe the listing excitement is not there, but that really does not mean that it is the end of the story,” says Digant Haria, Co-Partner, GreenEdge Wealth, after the listing of the LIC stock. We have been discussing LIC IPO ever since a proposal to go public came through.
- Despite being priced at a reasonable level at Rs 950, LIC has listed below that at Rs 862.2, a discount of nearly 9%, on BSE.
- It feels slightly disappointing? Of course nobody likes losing money on the stocks they have just bought, but I think that is the flavour of the market.
- The way the market has been in the last one month or post the Ukraine-Russia tensions, that is the case with almost everything in the stock markets.
Anybody who buys a stock, sees it is down in the next 10-15 days. I think the same has unfortunately happened with LIC. I think LIC will be a very good company but when you come to get listed in the stock markets, you are subject to the same force of liquidity and whatever happens in the short term.
- It is disappointing for sure but the good part is that policyholders are still in the money and once the euphoria in markets subside,s it is always back to basics back to business.
- As LIC’s business mix changes over time and as it reports better numbers or sales figures, and as the analyst and the investor community can understand its numbers and disclosures the better, it takes time for this stock to deliver returns.
But that is how the game of stock market is. What is the way forward? Do you think those who got the allocation at Rs 900 should not panic because this is a bad day? It may be a bad start to a great company but a bad start does not mean that the journey is going to be bumpy? Yes, absolutely.
- The value of the company does not change in between the IPO and today or maybe even in the next one month.
- The value of the company changes only when the business fundamentals change.
- So, those who have invested, those who have come to the markets for the first time through this IPO have no reason to panic.
Maybe a year or two down the lane, they would definitely see some kind of returns on this stock because the business also picks up in the coming years as Covid restrictions go away. So, the advice remains the same, stay invested. Maybe the listing excitement is not there, but that really does not mean that it is the end of the story.
- The other point is that the government has sold 3.5% stake in a company which has a 64% market share when it comes to the insurance space it is in.
- The anticipation is that of course more will come and therefore the price should go up.
- But today we are hearing about a bunch of reports which are talking about LIC being at about Rs 1,000 a share? More is definitely going to come because it is just a 3% stake sale.
The government will someday have to reach that 75% mark but let us give it time, let us not speculate because the government, at least in the last few years, has shown that they are not hellbent on destroying the value of the public sector. We have seen some reasonably good turnarounds happen in the PSU banking space and the defence space.
I would not say that you know just with 3% sale the price is here. What happens if the government comes tomorrow and sells 10% more? The government is sensible and I am hoping that they will time the sale of future stake in such a way that it does not disturb the market. (What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice on ETMarkets,
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Is LIC stock good for long term?
Shares of Life Insurance Corporation (LIC) of India today hit new low of ₹ 605.10 apiece on NSE. Extending the sell off triggered after Adani-Hindenburg row, LIC share price today opened lower and went on to hit new life-time low, which is more than 50 per cent below the upper price band of its initial public offering (IPO).
- However, Yes Securities is highly bullish on the insurance counter.
- The brokerage believes that LIC share price may go up to ₹ 770 apiece levels from its current market price, which is ₹ 605 today.
- Highlighting the reason for being bullish on LIC shares, Yes Securities says, “The ULIP product line, which is low-margin, has risen faster than other Non-Par products.
Management states that LIC’s market share in ULIP is small and there is more headroom for this product line to grow. However, its impact on margin will be offset by Non-Par Savings (Non-ULIP) and Annuities. It may be noted that there have been 6 new product launches in 9M, all in the Non-ULIP Non-Par segment, barring one.
- On repricing, Annuity prices had been revised in August, which also impacted margin negatively.
- The repricing on Annuity products was done to make the product more competitive and growth will more than offset the negative impact on margin.” Click here to read latest stock market news The brokerage went on to add that the banca (including alternate) channel has grown 48% YoY and has contributed 3.50% to individual NBP in 9MFY23 compared with 2.56% in 9MFY22.
On the other hand, the agency channel has grown 7.6% YoY. Agent count has been flattish over 9M since there have been agent dropouts along with recruitment. Management explained that agents are undergoing training on the new products and they would be back on the street in Feb and Mach with renewed vigour.
From a longer-term perspective, LIC sees agent productivity improving significantly over 5 years. On its suggestion to positional shareholders in regard to LIC shares, Yes Securities said, “We maintain ‘BUY’ rating on LIC with a revised price target of ₹ 770. We value LIC at 0.7x FY24 P/EV for an FY23E/24E/25ERoEVprofile of 10.7/10.8/10.9%.We prefer IPRU, SBIL and MFS in the life insurance space.” Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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Can we sell LIC IPO after listing?
What is the Process of Selling IPO Shares Some of the major reasons behind the increase in the number of investors applying for an IPO are rising awareness about its benefits, the simple application process, price transparency, and the ability to help meet long-term goals.
Can I buy IPO without broker?
New Initial Public Offerings (IPOs) often create a lot of buzz among investors. IPOs are a great method for companies to grow and expand their operations. When the company launching its IPO in share market has a good track record and many takers, it can be difficult for interested investors to get a piece of the pie.
If the investor does not have a Demat account, it can become even more challenging to invest in a promising IPO. Demat accounts are necessary for all investors hoping to invest in or trade shares. These accounts, opened with a depository participant, store all your share certificates in the electronic or dematerialised format.
This not only makes it easy to buy and sell shares and other securities, but is now mandatory for all stock market investors.
How to invest in IPO without Demat account
Can I buy IPO without Demat account? The answer is, yes. Although you should ideally have your Demat and trading accounts in place, it is not impossible to apply for IPO without these accounts. The method of investing in an IPO without a Demat account is rather ingenious.
Here’s how it’s done— 1. Get in touch with a broker to open a Demat account,2. Submit the required documents such as PAN details, photographs, proof of address, and opening fee.3. Receive a DP ID from your broker immediately.4. Apply for the IPO using this ID, but skip the ‘beneficiary account number’ section on the application.5.
Once you apply, the amount of money for the number of shares for which you have applied will be blocked through the Application Supported by Blocked Amount (ASBA) process in your account. ASBA has been made mandatory for all IPO applications by SEBI. Through this, the amount required for application is blocked till shares are allotted.6.
The omission of the beneficiary account number will be communicated to you by the registrar at the time of allotment. However, by this time, you will have received your real beneficiary account number.7. You can correspond with the registrar to rectify the omission after which the shares will be credited to your account.
Alternatively, you can also “rent” a Demat account from investors who do not plan to apply for the IPO in question. You can later have these shares transferred to your newly created Demat account.
Although investors can apply for IPO without a Demat account, they need a Demat account and trading account to place trades. Therefore, the method detailed above is not sustainable. Ideally, for IPO investment, one should be prepared with a Demat account and trading account before buying any shares, if they wish to make the most out of trading in the stock market.
There are other issues with this method of IPO investment. Sometimes, if an investor enters an incorrect beneficiary account number, the allotment of shares can be delayed. This is unfavourable for an investor looking to make gains on the first day of the IPO. Conclusion While a Demat account allows you to hold all your securities in the electronic format, a trading account facilitates the sale and purchase of these shares and securities.
Brokers often allot these accounts bundled together. Some DPs even offer 3-in-1 accounts that offer Demat, trading and banking facilities. To start buying and selling shares or for IPO investment, open your Demat and trading account today. Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account | What’s the big deal about IPOs | 5 Tips for Investing In IPOs
What is the minimum amount to invest in IPO?
What are the conditions for a public offering? – Certain requirements must be fulfilled to go public. These include having a minimum of seven shareholders, minimum share capital of Rs 500,000, and at least 3 years of profit. Also, it must be registered with the Securities and Exchange Board of India.
- Once these requirements are fulfilled, they can file for an initial public offering.
- This process can be done through an investment bank or stockbroker.
- The conditions for the public offering may vary depending on the country.
- For example, in India, a company must have a minimum paid-up capital of Rs.50 lakhs and a net worth of at least Rs.10 crores.
When going public, there are some things to be followed in order to ensure success. The company’s financial statements should be accurate and have a solid management team. Also, it is essential to ensure that it has the sufficient cash flow to repay debt and meet its operating expenses.
Can I apply for IPO before opening date?
When can IPO orders be placed on Zerodha? – Orders for an IPO can be placed from 10:00 AM on the day it opens until 4:30 PM on the day it closes. Applications submitted during market hours are processed on the same day, while those submitted outside of market hours are processed the following day.
- Modifications can only be made between 10:00 AM and 4:30 PM on trading days.
- Zerodha confirms and submits the application to the exchange, and a mandate request is sent to the UPI app upon submission.
- The UPI mandate can be accepted until 5 PM on the closing day of the IPO.
- If the UPI mandate request has not been received, see Why is there a delay in receiving the IPO mandate on the UPI app? Mandates for IPO applications submitted between 4:30 PM and 10 AM are received on the UPI app when the IPO market opens.
IPO applications are not processed in real-time and can take several minutes to a few hours. As the exchange may not accept applications after 4:30 PM, applications collected on the last day after 3 PM are sent to the exchange on a best-effort basis. It is advisable to submit IPO applications before 3 PM on the last day. ×