LIC IPO

Life Insurance Corporation of India

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹949

Issue Price

Listing Price

₹867

Listing Price

Listing Gains

-₹81.80 (-8.62%)

Listing Gains

IPO Details

Bidding Dates

04 May - 09 May '22

Bidding Dates

Min. Investment

₹13,530

Min. Investment

Lot Size

15.00

Lot Size

Price Range

₹902 - ₹949

Price Range

Issue Size

14,619 Cr

Issue Size

IPO Doc

(D)RHP PDF  

(D)RHP PDF

Subscription Rate - Life Insurance Corporation of India IPO

  • Retail Individual Investor
    1.99x
  • Non-Institutional Investor
    2.91x
  • Qualified Institutional Buyers
    2.83x
  • Employees
    4.40x


About Life Insurance Corporation of India IPO

Who hasn’t heard of the Life Insurance Corporation of India? LIC has been synonymous with insurance in India for decades, and the market has been abuzz for a while in anticipation of their to-be launched IPO. Their extensive presence in both urban and rural areas includes a massive network of almost 13.5 lakh insurance agents and over 1 lakh full time employees. The other lines of business for this PSU include LIC Housing Finance, LIC Pension Fund, LIC Mutual Fund, and LIC Card Services. Through the launch of this IPO, the Government of India wishes to reduce their holding in the organization. LIC IPO is worth around Rs 21,000 crore and will be the largest IPO ever in the Indian stock market history. The IPO values LIC at Rs 6.07 lakh crore. The LIC IPO price band is set at Rs 902-949. The IPO is a complete offer for sale (OFS) of 22.13 crore shares or 3.5% stake in the company by the government.

Performance Snapshot of LIC

Before choosing to invest in a company, it is important to understand its financial performance, and stability and assess its growth prospects. Here is a quick snapshot of LIC’s financial history for the recent 3 years (amount in Rs. Cr.)

Financial Year Total Assets Total Profit After Tax
March 2021 37,46,404.47 2,974.14
March 2020 34,14,174.57 2,710.48
March 2019 33,66,334.62 2,627.38


Important Dates - LIC IPO

IPO Opens On May 4, 2022
IPO Closes On May 9, 2022
Allotment Date May 12, 2022
Initiation of Refunds May 13, 2022
Credit of Shares to Demat May 16, 2022
Listing Date May 17, 2022

Why should you invest in Life Insurance Corporation of India IPO?

One can think of several reasons to invest in the LIC IPO, some of which include:

It is a household name, and the brand is associated with financial stability, low risk, and a vast pan-India network. The company is a part insurance and part investment products company. It is the fifth-largest global insurer by GWP. Its plans are a combination of insurance and investment with a guaranteed return.

As is evident in the financial snapshot, the company has terrific financials with upwards trending revenues consistently. 

LIC has a massive market share of 70%, even with the presence of almost 2 dozen other insurance providers in the country. It has over 13.5 lakh agents who bring most of the new business.

Such a large organization is able to withstand market turmoil and other economic upheavals that arise from time to time.

LIC manages assets worth around Rs 39 lakh crore. It invests these funds across stocks and bonds and owns 4% of all listed stocks in India and more government bonds than the RBI.

 

 


SWOT Analysis - Life Insurance Corporation of India IPO

Strengths

Massive countrywide network of offices and agents, including deep rural penetration. Huge market share of almost 70%, even with the presence of a large number of competitors. Strong financials and stable Year-on-Year performance. Multiple offerings including a wide variety of insurance and other investment plans. Diversified business portfolio with several other LoBs like Card Services, Pension Fund, Mutual Fund etc.

Weaknesses

Being a Public Sector Undertaking (PSU), there are certain restrictions imposed on LIC by the government which may prove to be impediments in its expansion and growth as compared to private organizations. Sometimes, being too big an organization with a huge employee base can create financial imbalance during times of a severe crisis.

Opportunities

The capital raised from the IPO can help bring LIC into the latest digital age and cater to the tech-savvy online customer base. The importance of healthcare and insurance in the post-lockdown era can help boost LIC’s growth.

Threats

LIC faces threats from a host of competitors, most of which are trying to offer unique and customised solutions powered by a strong technology infrastructure. Being a PSU, the changes in fiscal or regulatory policies may require LIC to internally change its policies as well, to align accordingly. 


Competitive Analysis - Life Insurance Corporation of India IPO

The insurance market has been consistently getting more competitive ever since the emergence of private players. As of now, there are above 20 insurance providers, backed by unique, tech-enabled solutions. LIC is India’s leading insurance provider, while it is the fifth-largest global insurance company by GWP. It provides a range of life insurance products to meet varied insurance needs of individuals.



How to apply for Life Insurance Corporation of India IPO?

You can apply for the Life Insurance Corporation of India IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an Life Insurance Corporation of India click here.
2. If you don't have a TradeSmart Account? Sign up.

Looking to invest in an IPO?

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Frequently Asked Questions (FAQs) - Life Insurance Corporation of India IPO

What is LIC IPO lot size?

LIC IPO market lot size is 15 shares. Retail investors can apply for up to 14 lots.

What is LIC IPO promoter holding and how will change post-IPO?

LIC is 100% owned by the Government of India and after the IPO, the government holding will come down to 96.50%.

How much discount will policyholders get? 

LIC policyholders will get a discount of Rs 60 per share, while employees and retail investors will get a discount of Rs 45.

How much portion is reserved for policyholders?

LIC has decided to reserve up to 10% of its IPO offer size for policyholders.

How can LIC policyholders apply?

If a retail investor is also a policyholder and an employee of the Life Insurance Corporation of India (LIC), he can bid under all three categories separately.

The Central Government has appointed ten merchant bankers for this upcoming IPO. Citigroup Global Markets India, Goldman Sachs (India) Securities and Nomura Financial Advisory and Securities India are among the ten merchant bankers.

Who is the registrar for the IPO?

Kfintech is the registrar for the LIC IPO.

Who are the LIC IPO Lead Managers?

The government has appointed 10 book running lead managers for the LIC IPO. These are Axis Capital Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited, J.P. Morgan India Private Limited, JM Financial Consultants Private Limited, Kotak Mahindra Capital Company Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd and SBI Capital Markets Limited.

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