By: Hem - 04-May-2022

LIC IPO: 7 Tips To Increase Your Chances Of Allotment

The Life Insurance Corporation Initial Public Offering (LIC IPO) is supposedly going to be the largest one in the history of its existence in India. Many people are buying LIC policies to be eligible for participating in this huge event. If you are thinking to apply LIC IPO now, you may have a good chance to get an allotment. However, for increasing the chances you need to have a clear overview of the same. And for that what better way it is to conduct an online search. 

Out of all the platforms available Hem Securities is an appropriate portal that can help you out with strategizing your way to get a LIC IPO allotment. It is leading in its field for over 40 years and has dedicated advisory and research desks that make you understand and help you with unbiased investment insights. It incorporates modern technologies of trading that are easy to use and emerging as a powerful tool to better the investment game. Still getting an allotment of LIC IPO is like contesting a game of luck. But it is not all about luck, many tricks can help with getting your spot if applied righteously. So without further ado let’s get into the details.

1. Subscribe to Demat accounts through family and friends

You can choose to go for multiple bids by applying through the Demat accounts of family and friends. This elevates your probability to bag a spot. Besides, the process is smooth and you have to pay only a small charge for opening a Demat account if you choose the services of Hem Security. Furthering the rest is smooth and seamless. 

2. Fill out the application form carefully and avoid applying at the end moment

If you are thinking of subscribing to a LIC IPO you should do it as soon as it starts because the applications that are submitted near the last dates end up being unsuccessful. This happens because the banks have a delayed response to these applications. This may happen because of high HNI and QIB subscriptions and problems associated with technology. 

The IPO of LIC is the most awaited among the rest, it will be a big loss if you commit errors while filling up the form. Be very careful while filling up the credentials. Besides, cross-check multiple times to get hold of any possible errors. If required have someone check for the correctness of your credentials. You can also opt for forms in the printed form to decrease the possibility of any errors occurring. But for secured and zero possibility of such errors occurring you can choose to apply for LIC IPO through ASBA. 

3. Always choose smaller bids

The procedure of allotment does not differentiate among the subscribers. SEBI gives equal weightage to all the retail investors who subscribe to an IPO. However, if you bid multiple times from different accounts with smaller values of bidding then the chances of your application being noticed increases. Furthermore, if you bid smaller values and apply LIC IPO then you can bid the rest amount on other IPOs as well and gain adequate returns. 

4. Avoid going below the cut-off rate

In an IPO the cut-off rate or price is the upper limit of a band of the price which is set by a company. In most of the IPOs, it is seen that the highly hyped IPOs as that of LIC are overly subscribed. This implies that most of the bidders have bid at the price of cut-off for their shares. The chances of you getting an allotment is almost nil if you bid for a value less than that of the cut-off price. Furthermore, the company will return the excess ransom if you bid at a lower price than the cut-off. 

5. Do not forget the approval of the mandate request

You cannot just apply for the LIC IPO and sit for an allotment to happen. You are just halfway through the process. You have to accept the mandate request and then approve it to continue further with the process. You get such a mandate request from a bank or broker after applying for any IPO be it LIC or any other company. Without approving this mandate your application will be of no use. 

6. Obtain shares of parent companies

If you apply for the stocks of the parent organization then the company puts you in the listicles of shareholders. This on the other hand gives you a higher weightage during the allotment of LIC IPO. However, you have you buy the share from the same Demat account as the one you have used for getting an allotment of LIC IPO. It does not matter if the share is small or big, your name on the category of shareholders is important for the bid. 

7. Avail specific benefits

If you are working with LIC then the chances of you getting an allotment of LIC IPO will be higher significantly. LIC presently has a whopping amount of Rs 1.58 crores of shares that are kept reserved for its employees. Furthermore, you can apply in the retail category as well. If you are also a policyholder of LIC then you can apply in both the policyholder and retailer formats of application. However, you have to fulfill the parameters of eligibility to apply in the retail category. 

On the other hand, for the policyholders, LIC has kept Rs 3.16 crore equity reserved. Hence this public issue is the most awaited for the policyholders as large as 26 crores in number. This reservation increases your possibility of getting an allotment if you are a policyholder. Moreover, you can only apply for a slot in and subscribe for LIC IPO if you have a Demat account that is linked to your PAN card. 
LIC IPO does not disappoint the investors as it is one of the best IPOs available in India. As we have already discussed that if you want to increase your probability of getting allotment further, you can opt for the services available at Hem Securities. It is among the best investment service provider in the nation. The teams working under the company assist their clients to take bigger and wiser steps. You can open a Demat account with them anytime along with a trading account over the online website and start dealing accordingly.