Company Profile
LIC India, the leading insurance company and the much-awaited IPO for two years, is just around the corner. It has a broadly diversified product across the various segments provided to individuals, groups, organizations, etc. With a market share of above 66.2% in new business premium, LIC India will open for the subscriptions on May 4 and close on May 9, with anchor investment opening on May 2.
Business Information
LIC is the largest life insurance company in India, with an asset value of over 2,529,390 crores. LIC of India was established on 1st September 1956 when the government of India passed the Life Insurance of India Act, nationalizing the private insurance industry in India. Which now functions with a network of around 1,537,064 Individual Agents, 342 Corporate Agents, 109 Referral Agents, 114 Brokers and 42 Banks. LIC has fully computerized branch offices, over 8 zonal offices along with the head office located in Mumbai.
Facts About the Company
- LIC India is a part of insurance and investment products company. Their goals are to provide a combination of insurance and investment with a guaranteed return
- It manages assets of over Rs 2,529,390 crores where these funds are invested across stocks and bonds. They own 4% of all listed stocks in India and have the government bonds as well
- Moreover, it operates through 2048 branches, 113 divisional offices, and 1,554 Satellite Offices.
Points to note before investing in LIC India IPO
- It is the leading insurance provider company in India and the fifth largest global insurer by GWP
- Policy holders will get a 60 rupees per share discount and retail employees and anchor investors will get a Rs 45 discount.
- It plans to offer 'fixed returns' along with life insurance coverage which makes easier for the agents to bring the business to the organization
- The company has a conviction for both life insurance as well as investment products provided by them
- LIC's asset generation is so much, which is approximately more than the collection of the entire mutual fund industry combined
- The reason contributing to investor interest in LIC is the under-serviced nature of the life insurance market in our country
- Even with the fact that LIC writes millions of insurance policies, the insurance premium-to-GDP ratio in India is at 3.7 per cent, well below the global average of 7.23 per cent.
LIC IPO Objectives
The primary objective of the LIC IPO issue is to achieve the benefits of listing the equity shares on the stock exchanges. Also, to carry out the offer for sale of up to 316,249,885 equity shares by the Selling Shareholder.
Benefits to the Shareholders
For the Qualified Institutional Buyers (QIB), the company will reserve 50 per cent of LIC IPO. The Non-Institutional Investors (NII) allocation was fixed at 15 per cent. So for retail investors, LIC will reserve 35 per cent of the offer.
Opening Date | May 4, 2022 |
Closing Date | May 9, 2022 |
Issue Type | Book Built Issue IPO |
Face Value | ₹10 Per Equity Share |
Issue Price | ₹902-949 Per Equity Share |
Lot Size | 15 Shares |
IPO Price | ₹20557 Cr |
Listing At | NSE, BSE |
Allotment, Listing & Refund Details
Finalization of Basis of Allotment | May 12, 2022 |
Initiation of Refunds | May 13, 2022 |
Credit of Equity Shares | May 16, 2022 |
Listing Date | May 17, 2022 |
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