LIC IPO share allotment: Understanding math behind allocation of shares to retail investors, policyholders | Watch

Share allotment of India's largest Initial Public Offering (IPO), Life Insurance corporation (LIC), began on Thursday, May 12, 2022, and many of those who applied for this public offering have been allotted shares. For those who have not been allotted LIC shares, refund initiation has started on Friday, May 13, 2022.  

Meanwhile, as the share allotment has already begun and many are still not clear about the equation and proportion in which they have been allotted shares, Zee Business spoke to retail investors and policy holders and learnt that they have been allotted shares and the same has been confirmed via SMS and email.  

Zee Business Correspondent Anurag Shah said though there has not been official confirmation, investors have confirmed that they have been allotted shares. In conversation with Zee Business Managing Editor Anil Singhvi, shah said that as far as retail investors are concerned almost all retail investors who applied for one lot has been allotted shares.  

Interestingly, many shareholders have not been allotted shares as per the prescribed lot of 15 shares, he said.  

Also Read: LIC IPO share allotment expected today: Here's how to check status on BSE, KFintech

After talking to experts, retail investors and LIC policyholders, it came to the fore that if one has applied for maximum 210 shares in the retail category, the average shares that have been allotted to retail investors at Rs 904 per share are 77 shares. For LIC policy holders, the average number of shares comes down to 48 shares if applied for maximum available shares in the lot. The number of shares is directly proportional to subscription and given the policyholders saw over 6 times bidding, the shares allotted to policyholders were less in comparison to retail investors.  

Watch Full Video to understand LIC IPO share allotment math  

#LICIPOWithZee | LIC के IPO में अलॉटमेंट रेश्यो हुआ तय...

रिटेल कैटेगरी में 1 लॉट के एप्लीकेशन पर मिले 15 शेयर

पॉलिसी होल्डर कैटेगरी में 1 लॉट अप्लाई करने वालों को पक्का अलॉटमेंट नहीं

जानिए #licipoallotment रेश्यो की पूरी डिटेल्स अनुराग शाह से...#LICIPO @anuragshah_ pic.twitter.com/0JxyYpfQI4

— Zee Business (@ZeeBusiness) May 13, 2022

Earlier, LIC IPO, which remained opened between May4 and May 9, saw a strong response as the issue was subscribed 2.95 times on the final day of the subscription. The state-run insurer had received bids for 47,83,67,010 shares against 16,20,78,067 shares on offer. 

The retail investors and eligible employees were given a discount of Rs 45 per equity share and a discount of Rs 60 per share was given to policyholders.