Bank Branch will remain open on 8th May Sunday for LIC IPO

 

Banks to be remain open on Sunday for #LICIPO while RBI & LIC will enjoy their Holiday & 5 Days week. #Irony

The Reserve Bank of India on Wednesday requested all ASBA designated branches of banks to remain open for the public on May 8, 2022 (Sunday) to facilitate the processing of applications for LIC IPO

“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). The matter has been examined and it has been decided that banks may keep all their ASBA designated branches open on May 8, 2022 (Sunday) for the above purpose” RBI said.

Application Supported by Blocked Amount (ASBA) is an application made by an investor, containing an authorization to Self-Certified Syndicate Bank (SCSB) to block funds available in the applicant’s Savings Bank Account or Current Account (other than Overdraft or loan accounts), for subscribing to an Issue, to the extent of application money, till finalisation of allotment in the issue or till withdrawal/ failure of issue, or till withdrawal/ rejection of the application, as the case may be.

The LIC IPO, which opened for subscription on Wednesday, was subscribed 67 per cent, or 0.67 times, at the end of Day 1, driven by robust interest from its policyholders, employees, and the retail segment. The LIC IPO offer which opened for subscription on Wednesday will close on May 9 and there will be bidding on May 7 (Saturday) also. The share sale is through the Offer For Sale (OFS) of up to 22.13 crore equity shares and the listing is likely on May 17.

The government aims to generate about Rs 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth. LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, and policyholders will get a discount of Rs 60 per equity share.

WHAT IS ASBA FACILITY?

Application Supported by Blocked Amount (ASBA) is an application made by an investor for the subscription of an Initial Public Offer (IPO) and Follow-on Public Offer (FPO). The form contains an authorization to Self-Certified Syndicate Bank (SCSB) to block funds available in the applicant’s Savings Bank Account or Current Account (other than Overdraft or loan accounts), for subscribing to an Issue. The amount to be blocked must be to the extent of application money, till finalization of allotment in the issue or till withdrawal/ failure of issue, or till withdrawal/ rejection of the application, as the case may be.

When an investor applies for IPO/FPO through ASBA, he cannot use the blocked amount for any purpose. However, funds blocked in the account will continue to earn interest during the application processing period, if held in an interest-bearing account. Bank will mark a lien on the deposit account of the investor to the extent of the application money. The lien will be removed immediately after the finalization of the basis of allotment. If a bid is successful, the deposit account will be debited and the allotted shares will be transferred by the Company to the applicant’s Demat account.

Eligibility:

The ASBA facility is available to Indian residents who have a valid PAN number along with a Demat account and trading account. At the time of applying through ASBA, the investor must have an adequate balance in his account to be blocked. The investor cannot revise the bid after applying through ASBA.

How to submit an ASBA application online?

An investor who has an internet banking facility (INB) on their deposit account, with transaction rights can bid through the ASBA facility online.  

Click on the link named “IPO Application” displayed on the menu.   

Select one of the IPOs you want to apply for and mention up to 3 bids.

Enter your depository details.   Place and confirm your Order.

You would then be required to accept the “Terms & Conditions” before submitting the bid.

How to submit an Offline ASBA Application?

Download the ASBA form from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) websites. Fill in the required details and submit the form at the Self-certified Syndicate Banks along with the photocopy of the required identity proof. The bank will send the application details to the stock exchange and block the stipulated bid amount in your bank account.    You can check the application status on both BSE and NSE website