May22 , 2022

Lic Ipo: Sbi To Keep All Branches Open On Sunday To Accept Applications

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Government-owned State Bank of India (SBI) on Friday said to keep all branches open on May 8 to accept applications for the LIC IPO. The announcement comes a day after RBI directed all ASBA designated branches to remain open for the mega IPO on Sunday.

SBI through its Twitter account said, “Here’s a good news for all our customers applying for LIC IPO!”

SBI notified saying, “We are happy to inform that, for the convenience of our customers applying for LIC IPO, all our branches will be open on 8th May 2022 (Sunday) to accept applications.”

On May 4th, RBI announced, “the Government of India, in order to facilitate bidding for LIC IPO, has requested that all bank branches designated to process ASBA (Application Supported by Blocked Amount) applications may be kept open for public on May 8, 2022 (Sunday).”

Earlier, the behemoth IPO was allowed to trade only on Saturday during the weekend. However, now it will be available for bidding on Sunday as well.

ASBA is an application by an investor containing an authorization to Self Certified Syndicate Bank (SCSB) to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, according to Sebi’s circular.

Notably, SCSB is a bank that is recognised as the bank capable to provide ASBA services to its customers.

SBI is among the ASBA designated banks.

Recently, LIC announced special loan offers for the insurer’s employees to participate in the IPO. SBI is offering a personal loan of up to 20 lakh, or 90% of the purchase price of shares, whichever is lower, to the employees of LIC, at a special rate of 7.35%, lower than the three-year marginal cost of lending rate (MCLR) of 7.4%.

Also, SBI has waived off processing fee for LIC employees on their five-year loan, where 10% of the loan amount will be taken as the margin with no security or guarantee.

LIC IPO which is the biggest ever on the market, opened on 4th May and will be available for subscription till 9th May. The IPO has a price band of 902 to 949 equity shares. The IPO has been fully subscribed in merely two days of its issue. Friday, is the third day of the public offer. 

Data given on NSE, at around 3.41 showed that cumulatively the IPO received bids of 20,49,28,020 equity shares against the offered size of 16,20,78,067 equity shares – oversubscribing by 1.26 times.

The portion reserved for policyholders, employees, and retail investors oversubscribed by 3.72 times, 2.83 times, and 1.14 times. While the portion kept for Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) picked up the pace by subscribing by 53% and 62% against the reserved size respectively.

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