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LIC IPO 2022 – Don’t do these MISTAKES!!


Finally, the much-awaited IPO of India LIC IPO 2022 is here. LIC IPO subscription will open on 4th May 2022 and it will remain open for bidding till 9th May 2022. The Government of India (GoI) has fixed the LIC IPO price band at Rs.902 to Rs.949 per equity share. 

LIC IPO 2022

LIC IPO Details

Before proceeding further towards the main reason for writing this post, let me share the LIC IPO details.

# When did LIC IPO open?

The public issue of LIC IPO will open for subscription on 4th May 2022 and it will remain open for bidding till 9th May 2022.

# What is the lot size of LIC IPO?

The minimum application size is 15 shares for retail investors. They can apply for a maximum of 14 lots of 15 shares each, i.e. up to 210 shares (i.e. is close to Rs 2 lakh per retail investor application).

# What is the price band of LIC IPO?

LIC IPO share price band has been set at Rs 902-949 per share (for a face value of Rs 10 per share).

# What is the discount price for LIC Policyholders?

The discount for LIC policyholders is Rs 60 per share. Hence, the effective price for existing LIC policyholders will be Rs 889 per share (assuming prices are fixed at the higher end of the price band). 10% IPO Reservation is for policyholders.

# What is the discount price for retail investors?

The discount for retail shareholders is Rs 45 per share. The effective price for retail will be Rs 904 per share (assuming prices are fixed at the higher end of the price band). IPO Reservation for retail investors is 35%.

# When is the listing date of LIC IPO?

The public issue will list on both NSE and BSE and the tentative listing date of the public issue is 17th May 2022.

LIC IPO 2022 – Don’t do these MISTAKES

As it is a much-awated IPO for many Indians and fans of LIC, many are BLINDLY eager to subscribe to it. But I wish to caution and share my views. I am neither an expert in direct stocks nor an expert to analyze the companies. However, my intention to write this post is based on my personal financial planning view. Hence, don’t take this post as my recommendation for this IPO.

# Buying LIC Policy is different than buying LIC stock

Do remember that buying a LIC policy with an intention to save tax or a kind of safe mentality is different than buying this LIC stock. Just because LIC has a trust created since a long time does not mean you will get the same decent and trustworthy returns in equity. Investing in equity is an entirely different ballgame. Play as per your risk appetite than the BLINDLY following based on LIC’s brand.

# Never use your emergency fund for this subscription

Many individuals wish to subscribe to this IPO by hook or crook. Hence, they may plan to utilize their emergency fund and subscribe to it. Don’t do such a horrific mistake. We don’t know whether the listing will be at a premium price or at a discounted price.

# Never borrow the money

Few wish to borrow the money and apply for this IPO. Don’t do this. As I said above, we don’t know whether the listing will be at a premium or at a discounted price. Hence, avoid such leverage play.

# LIC IPO is more of a hype

NONE is aware of at what rate the listing will be. However, there are many so-called experts who are ready to analyze and predict as if they are GOD. Don’t believe on such predictions. Instead, you must be aware of the success and failure stories of such big IPOs of the past. For every successful story, there may be many unsuccessful stories also. Hence, have a neutral view or do your own research.

# Don’t apply just because LIC IPO is offering some discount

As I mentioned above, there is some discount for retail investors and policyholders. Just because it is available at a discounted price does not mean it is worth buying or investing in. Hence, don’t go for a discount.

Conclusion – As I declared above, I am not an expert to analyze companies or stocks. However, the purpose of this post is neither to promote LIC IPO nor to give you a negative image of this. Instead, I wish to caution all those who are eagerly waiting for this IPO.

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