Life Insurance Corporation of India (LIC) IPO
“Life Insurance Corporation of India (LIC) IPO”
The Life Insurance Corporation of India (LIC) is the country’s largest insurance provider. In the new business premium market, it has a market share of more than 66.2 percent. Unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products are among the company’s participating and non-participating products.
It has a total AUM of Rs. 39 lakh crore as of 30 September 2021. LIC has 2048 branches, 113 divisional offices, and 1,554 satellite offices around the country. Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, the United Arab Emirates, Bahrain, Qatar, Kuwait, and the United Kingdom are among the countries where it operates.
- In terms of brand recognition, LIC is considered one of India’s “oldest and strongest” corporations. In addition, LIC is one of the world’s third strongest and tenth most valuable insurance brands.
- It also has the largest market share (61%) in new business premiums and policy numbers (71 percent). In FY21, it raised its accounts under administration to Rs 37.7 trillion on an individual basis.In addition, it has the biggest market share in new business premiums (61%) and policy numbers (71 percent). On a stand-alone basis, it increased its accounts under management to Rs 37.7 trillion in FY21.
- Inorganic growth, It has a spate of investments in both private and public firms that allow them to expand organically while receiving monetary assistance.
- LIC has the most extensive agent network in the country. It had over 13.5 lakh agents across the country as of March 2021.
- The life insurance sector is a very competitive one. LIC is the market leader, although private businesses compete with it for superior service.
- LIC is also one of the country’s major employers, and despite its obligation to create jobs, it rarely invests in technology to increase its efficiency.
- LIC spends less on advertising than private players, as evidenced by the “quality of adverts and material they provide.”
- According to IIFL Securities, the firm has the capacity to extend its product line and serve to clients by launching additional items tailored to their needs. “With new goods, the firm should look forward to growing its reach into new geographies,” it added.
- According to the research, LIC should invest extensively on advertising and marketing in order to develop new product offerings and serve to new-age clients. For a long time, technology has played a significant role in the insurance industry.
- According to the paper, the corporation may use sophisticated technologies like block chain and artificial intelligence to boost its operations on a larger scale.
- According to the research, LIC has a large amount of discretionary cash that may be put to good use by investing in new-age enterprises from which it can benefit in terms of technological growth and earn a high return.
- “The government’s norms and regulations must be followed by LIC. The firm’s growth is hampered as a result of this “According to the study, the corporation has previously invested in a number of loss-making businesses as a result of government rules.
- The study stated, “In order to earn personal interest, the agents miss-sell the consumers with policies that they do not require, resulting in LIC losing the customer’s confidence.”
- By using old tactics, LIC limits its possibilities of catering to the youthful urban population.
- They don’t have the freedom to “acquire new technology and methods of distribution,” according to the report.
LIC IPO Details
|IPO Opening Date||May 04, 2022|
|IPO Closing Date||May 09, 2022|
|Issue Type||Book Built Issue IPO|
|Face Value||₹10 per equity share|
|IPO Price||₹902 to ₹949 per equity share|
|Market Lot||15 Shares|
|Min Order Quantity||15 Shares|
|Listing At||BSE, NSE|
|Issue Size||221,374,920 Eq Shares of ₹10
(aggregating up to ₹21,008.48 Cr)
|Offer for Sale||221,374,920 Eq Shares of ₹10
(aggregating up to ₹[.] Cr)
|QIB Shares Offered||Not more than 50% of the offer|
|Retail Shares Offered||Not less than 35% of the offer|
|NII (HNI) Shares Offered||Not less than 15% of the offer|
LIC IPO Lot Size
The AGS Transact IPO market lot size is 85 shares. A retail-individual investor can apply for up to 13 lots (1105 shares or ₹193,375).
The corporation is promoted by the President of India, operating via the Ministry of Finance of the Government of India.
LIC IPO Promoter Holding
|Pre Issue Share Holding||100%|
|Post Issue Share Holding||96.50%|
Financials of Life Insurance Corporation of India IPO (LIC IPO):
|Particulars (in Lakhs)||2019||2020||2021|
|Profit After Tax||2627||2710||2974|
Objects of the LIC IPO:
The net revenues from the IPO will be used for the following purposes:
- To get the benefits of stock exchange listing of equity shares.
- Selling stockholders will make an offer to sell 316,249,885 shares.
LIC IPO Tentative Timetable
The LIC IPO will take place between May 4 and May 9, 2022. The bidding will take place from 10:00 a.m. to 5:00 p.m. The deadline for UPI Mandate confirmation is 12 p.m. on the day after the issue closes.
|IPO Open Date||May 04, 2022|
|IPO Close Date||May 09, 2022|
|Basis of Allotment Date||May 12, 2022|
|Initiation of Refunds||May 13, 2022|
|Credit of Shares to Demat Account||May 16, 2022|
|IPO Listing Date||May 17, 2022|
If we have look on the swot analysis, company’s strengths are creating an interest to apply in its IPO as LIC is one the oldest and strongest company. Also, company has maintained a plus point by creating a diverse portfolio internationally.