How to bid for LIC IPO Using UPI ?

How to bid for LIC IPO Using UPI ?

IPO
by Shreya Anaokar Last Updated: 2022-06-02T16:04:19+05:30

More the buzz is getting created in the markets regarding the LIC IPO the more the people want to apply for it. The most common question that comes to people's minds is ‘Can we bid for the LIC IPO using UPI?’ and ‘How to bid for LIC IPO shares using UPI?’  As we all know nowadays most of the daily transactions take place via UPI as it is easier and faster to use.


Can we bid for the LIC IPO using UPI?
 

You can apply for LIC IPO using your UPI ID as a payment method. All you have to do is inform your broker to submit the LIC IPO application using your UPI ID.

The Applications Supported by Blocked Amount (ASBA) and UPI Mechanism are available to eligible policyholders bidding in the Policyholder Reservation Portion. Interested retail investors must make sure to authorise the UPI mandate request before submitting bids through the UPI Mechanism.

Note that investors must use their own bank account linked with their UPI ID, which is UPI 2.0 certified by NPCI


How to bid for IPO shares using UPI


According to HDFC Bank website, here are some steps to bid using UPI:

Step 1: Enter your UPI ID on the LIC IPO application form and submit it
Step 2: You will get a fund block request on Google Pay app
Step 3: Approve the request in the Google Pay App to block the amount for the IPO
Step 4: The funds will be blocked in your bank account until allotment, when it is debited. The limit for IPO application is Rs.2 lakh per transaction on UPI.
Step 5: On allotment of the shares, the money will be automatically debited from this blocked amount.
Also, the shares that have not been allotted to you, the blocked funds will be unblocked on the end date or expiry date of the mandate.
 

Do’s and Dont’s one must follow while bidding for the LIC IPO using UPI:


Do not make the Bid cum Application Form using third party bank account or using third party linked bank account UPI ID

Do not link the UPI ID with a bank account maintained with a bank that is not UPI 2.0 certified by the NPCI in case of Bids submitted by RIBs using the UPI Mechanism.

Do not submit more than one Bid cum Application Form for each UPI ID in case of RIBs Bidding using the UPI Mechanism

Do not submit incorrect details of the DP ID, Client ID, PAN and UPI ID details if you are a RIB, Eligible Employee or an Eligible Policyholder, Bidding through the UPI Mechanism.

Note that investors using the UPI Mechanism should mention valid UPI ID of only the Bidder and of the first Bidder (in case of joint account.)

Ensure that they use only their own ASBA Account or only their own bank account linked UPI ID to make an application in the Offer and not ASBA Account or bank account linked UPI ID of any third party.

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About the Author

Shreya Anaokar is a Content Writer at 5paisa. She has completed her Master’s in Finance and Graduation in Statistics from the University of Mumbai. 

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