LIC IPO Share Allocation: Understanding the Mathematics Behind Share Allocation

The allotment of shares of Life Insurance Corporation (LIC), India’s largest initial public offering (IPO), started on Thursday, May 12, 2022 and many of those who have applied for this public offer have been allotted shares. For those who have not been allotted LIC shares, the return has started from Friday, May 13, 2022.

Meanwhile, since the share allotment has already started and many are still not clear about the equation and ratio that their shares have been allotted, G Business has talked to retail investors and policy makers and learned that their shares have been allotted and confirmed via the same SMS and email. .

G Business Correspondent Anurag Shah said that although no official confirmation has been received, investors have confirmed that their shares have been allotted. In a conversation with G Business Managing Editor Anil Singhvi, Shah said that as much as retail investors are concerned, almost all the retail investors who applied for a lot have been allotted shares.

Interestingly, many shareholders were not allotted 15 shares as per the allotted lot, he said.

Read also: LIC IPO Share Allocation Expected Today: How to Check Status on BSE, Caffeine Tech Here

After talking to experts, retail investors and LIC policyholders, it has come to light that if one applies for a maximum of 210 shares in the retail sector, the average share allotted to retail investors at Rs 904 per share is 77 shares. For LIC policyholders, the average number of shares drops to 48 shares when Lotte applies for the most available shares. The number of shares directly proportional to the subscription and seeing the policyholders bidding more than 6 times, the shares allotted to the policyholders were less than that of the retail investors.

Watch the full video to understand the math of LIC IPO share allotment

Earlier, the LIC IPO, which was open from May 4 to May 9, saw a strong response as the issue was subscribed 2.95 times on the last day of subscription. The state-owned insurance company received bids for 47,83,67,010 shares against 16,20,78,067 shares in the offer.

Retail investors and eligible employees were given a discount of Rs 45 per equity share and policyholders were given a discount of Rs 60 per share.

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