Technical errors; Millions of applications for Life Insurance Corporation IPO will be rejected
More than one million LIC IPO applications may be rejected due to technical errors. This was reported by Business Standard, citing close circles related to the IPO. Of the total, 7.34 million applications received, only 6-6.5 million were reported valid.
LIC will officially release the number of valid applications received prior to listing. It is common in IPOs for erroneous applications to be rejected. At the Somato IPO last year, 30 percent of retail investors were turned down due to such errors.
Investment bankers point out that incorrect names, UPI and PAN card details and multiple entries can invalidate the IPO application. Interruptions caused by banks’ servers when making payments using UPI may also invalidate applications.
Life Insurance Corporation’s initial share sale subscribed 2.95 times with a target of raising Rs 21,000 crore. Therefore, invalid applications will not affect the Life Insurance Corporation IPO.
The shares will be distributed through an electronic lottery based on the number of applicants. Whether the shares were acquired through the websites of the Bombay Stock Exchange and the National Stock Exchange. Click on the Status of Issue Application option on the website and enter the PAN or IPO application number to know the information. While 16,20,78,067 shares were placed for LIC and IPO, 47,83,67,010 applications were received.