An Initial Public Offering is the process of selling shares of a private company to the public through the issue of stocks. After the IPO, the company gets listed on the stock exchange. However, it is necessary to have a Demat account to invest in an IPO.
When is the LIC IPO Scheduled?
The LIC has already secured the nod from the SEBI, and its IPO was expected on March 11, 2022. But due to the turbulence in the global economy, it got delayed. However, the government has time until May 12 2022, to launch the IPO without filing new papers with SEBI.
How Does the LIC IPO Affect Brokers and Investors?
This spike in Demat account openings has been fueled by the government’s decision to give a quota of 10% for LIC policyholders in the IPO, a first-of-its-kind, and the possibility of a price decrease in the IPO.
Brokers are prepared to capitalize on the significant interest from LIC policyholders while the LIC irons out the kinks before issuing the mammoth IPO, which is likely to be valued at more than Rs 1 lakh crore. Brokers expect the LIC IPO to help them gain new clients since many first-time capital market investors may create Demat accounts just to invest in this IPO.
To invest in the IPO, one must have a Demat account. You can open a Demat account with the stockbroker of your choice. Opening a Demat account is quite a simple process.
How to Open a Demat Account?
For the dematerialization of shares, Demat accounts are utilized. It is generally used for investing in shares and securities in electronic form, which is easier to access with a Demat account. In addition, the Demat account transfers physical share certificates to electronic format, allowing access to account users better.
List of Documents Required to Open a Demat Account
You must have the necessary papers to open a Demat account quickly and hassle-free. A list of needed documents are:
- Identity proof with a photo, such as your Aadhaar card, PAN card, voter ID card, driving license, and so on
- Proof of residency, such as registered lease agreements, driver’s license, passports, landline phone bills, energy bills, apartment maintenance bills (if applicable), copies of insurance, gas bills, etc.
- Your bank’s passbook or account statement will suffice as bank account verification (must be no more than three months old).
- Income proof
Step by Step Guide to Open a Demat Account
Step 1: Online application form
Fill out the online form to request a free Demat account from IIFL Securities. First, fill out the online form with the required information, including your phone number and email address.
Step 2: Document verification
Share your PAN Card and bank account information. Enter your correct PAN number and the bank information you want to transact with.
Step 3: E-KYC process
Verify your KYC information online. The verification of your KYC information is done online.
Step 4: Demat account number
Start investing by downloading the IIFL Markets App. Your Demat account has been established, and you are now ready to transact and invest in the IPO.
It is straightforward to open a DEMAT account. You, too, may register a DEMAT account at IIFL fully hassle-free if you keep the elements mentioned earlier and the information in mind.
Benefits to the Policyholders
You can apply in the reserved quota if you have LIC insurance and have connected your PAN to it. Policyholders will get around 10% of the proceeds from the IPO. So this route increases the likelihood of receiving a LIC IPO allotment.
LIC also intends to provide a discount to its consumers. Because the IPO is based on a book-building procedure, the business will declare the price band before the public offering begins. If you are not a LIC policyholder or have not linked your PAN to the insurance, you can still apply under the general category.
How to Check LIC IPO Allotment Status?
The LIC IPO status is presently unavailable because the public offering has not yet begun. Typically, it takes up to six days following an IPO’s closing date to complete the allocation procedure. However, when the allotment procedure is over, you may check the status of your application by going to the LIC IPO allotment status website. To check the allocation status, you need your PAN card number, IPO application number, or DP/Client ID to check the allocation status.
The LIC IPO increased the number of Demat accounts in India. Furthermore, because the government has indicated that existing LIC policyholders would receive a discount in the future LIC IPO, the spike in Demat accounts will continue.