LIC IPO: To Subscribe You Need A Demat Account, Details Here

The initial public offering (IPO) of the Life Insurance Corporation of India (LIC) will be opened for retail investors on May 4 whereas the subscription for anchor investors began on May 2. India's biggest public offer will be closing on May 9. .The government of India aims to raise Rs 21, 000 crore from LIC's IPO by divesting its 3.5 per cent stake in the country's largest insurer by selling 22.13 crore shares through an offer-for-sale (OFS) route..The retail investors, who are looking forward to participating in the IPO, need to have a demat account in their name. The demat account holders will be able to apply for the IPO through their broker..The price band per share of the IPO has been fixed at Rs 902-949 and an investor should apply for a minimum of 15 shares, the size of a single lot of the IPO. LIC has reserved 10 per cent equity shares for the policy holders while 35 per cent shares of the net issue are available for retail investors..LIC has set an upper limit of the investment of Rs 2 lakh per investor. So, a retail investor can apply for a maximum of 14 lots of equity shares. Policy holders can apply under both policy holder and retail investor categories for a maximum investment of Rs 4 lakh..How to open demat account.· It's mandatory for the investors who are bidding for LIC IPO to open a demat account..· The demat account should also match with the PAN linked to your LIC policy..· You can open a demat account with a depository participant. The list of depository participants is available on NSDL and CDSL websites. The depository participants could be online banks, digital investment platforms or stockbrokers..· You will need address proof, PAN, a cancelled cheque and passport size photos to open the demat account. A small fee could be charged by the depository participant and the activation of the demat account is subjected to KYC verification..· The KYC verification also includes a mandatory in-person verification with the brokerage house, which can be done both online and offline..· Once the demat account is activated you will receive a 16-digit demat account number or the beneficial owner identification number..After opening the demat account, you can bid for the LIC IPO through your broker. Once you place the bid, you will receive a mandate from the participating bank. Your application process for the IPO will be completed once you accept the mandate and complete the payment.

LIC IPO: To Subscribe You Need A Demat Account, Details Here

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