Chittorgarh.com Logo
Loading...

Life Insurance Corporation of India (LIC) IPO (LIC IPO) Detail

May 4, 2022 - May 9, 2022

LIC is the largest insurance provider company in India. It has a market share of above 66.2% in new business premium. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.

As of 30 Sep 2021, it has a total AUM of Rs. 39 lakh crore. LIC operates through 2048 branches, 113 divisional offices, and 1,554 Satellite Offices. It operates globally in Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, UAE, Bahrain, Qatar, Kuwait, and the United Kingdom.

Key positive factors

  • LIC is a part insurance and part investment products company. Their plans are a combination of insurance and investment with a guaranteed return.
  • LIC has over 13.5 lakh agents who play brings most of the new business. LIC plans offer 'fixed returns' along with life insurance coverage. This makes it easy to sell by agents and brings peace of mind to the insurers.
  • LIC has high trust in the public for both life insurance as well as investment done with them. LIC is synonymous with insurance in India.
  • LIC manage asset of Rs 39 lakh crores. That is more money than the entire mutual fund industry combined. They invest these funds across stocks and bonds. They own 4% of all listed stocks in India and more government bonds than the RBI.
  • Leading insurance provider company in India and fifth largest global insurer by GWP.
  • A range of life insurance products to meet varied insurance needs of individuals.

Key challenges

  • LIC has poor new policy growth as they continue losing market share to private insurance players, especially in urban areas.
  • The margin in insurance + investment products is low.
  • It's very difficult to value LIC as the business model is unlike any other company. LIC collects money upfront and then promises to compensate policyholders at a later stage. The premiums they collect (part insurance and part investment) cannot be recognized as revenue.

Company Financials:

Summary of financial Information (Restated Consolidated)
Particulars For the year/period ended (₹ in Millions)
  31-Dec-21 31-Mar-21 31-Mar-20 31-Mar-19
Total Assets 40,907,867.78 37,464,044.68 34,141,745.74 33,663,346.17
Profit After Tax 17,153.12 29,741.39 27,104.78 26,273.78

Objects of the Issue:

The IPO aims to utilize the net proceeds towards the following purposes;

  1. To achieve the benefits of listing the equity shares on the stock exchange.
  2. To carry out an offer for sale of 221,374,920 shares by selling shareholders.

LIC IPO Details

LIC IPO Date May 4, 2022 to May 9, 2022
LIC IPO Face Value ₹10 per share
LIC IPO Price ₹902 to ₹949 per share
LIC IPO Lot Size 15 Shares
Issue Size221,374,920 shares of ₹10
(aggregating up to ₹21,008.48 Cr)
Offer for Sale221,374,920 shares of ₹10
(aggregating up to ₹21,008.48 Cr)
Retail Discount Rs 45 per share
Employee Discount Rs 45 per share
Issue Type Book Built Issue IPO
Listing At BSE, NSE
QIB Shares OfferedNot more than 50% of the Net Offer
Retail Shares OfferedNot less than 35% of the Net Offe
NII (HNI) Shares OfferedNot less than 15% of the Net Offe
Company Promoters

The President of India, acting through the Ministry of Finance, Government of India is the company promoter.

LIC IPO Timeline (Tentative Timetable)

LIC IPO opens on May 4, 2022, and closes on May 9, 2022. The LIC IPO bid date is from May 4, 2022 10.00 A.M. to May 9, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
LIC IPO Opening Date May 4, 2022
LIC IPO Closing Date May 9, 2022
Basis of Allotment May 12, 2022
Initiation of Refunds May 13, 2022
Credit of Shares to Demat May 16, 2022
LIC IPO Listing Date May 17, 2022

LIC IPO Lot Size

The LIC IPO lot size is 15 shares. A retail-individual investor can apply for up to 14 lots (210 shares or ₹199,290).

Application Lots Shares Amount
Minimum 1 15 ₹14,235
Maximum 14 210 ₹199,290

LIC IPO Promoter Holding

Pre Issue Share Holding 100%
Post Issue Share Holding 96.50%

LIC IPO Details by Investor Category

Category Bidding at Max Bid Amount Basis of Allotment Discount Final Price
HNI At price Rs 9,067 Cr Proportionate No Rs 949
Retail Cut-off Not above Rs 2 lakhs Draw of Lot Rs 45 per share Rs 904
Employee Cut-off Not above Rs 2 lakhs Proportionate Rs 45 per share Rs 904
Policy Holders Cut-off Not above Rs 2 lakhs Proportionate Rs 60 per share Rs 889

LIC IPO Researved Category (Policyholder, Employee and Retail)

Read more details at LIC Policyholder(s) IPO Reservation - Explained

LIC IPO Multiple Applications

A LIC policyholder can apply for LIC IPO shares using 2 IPO applications in the following categories:

  1. Policyholder + Retail Category
  2. Policyholder + HNI (NII) Category

LIC IPO Limits in Reserved Quotas

  • Rs 2 lakh investment limit in policyholders, employees, and retail investors' quotas.
  • Policyholders can Increase limits by bidding in the "policyholders + retail" quota (Rs 2 + 2 lakh).
  • Employees can Increase limits by bidding in the "employee + policyholders + retail" quota (Rs 2+2+2 lakh).

Advantages of Reserved Quota in LIC IPO

  • Policyholders get Rs 60 per share discount on the final offer price.
  • Rs 45 per share discount in retail and employees' quota.

Eligible Policyholders for Reserved Policyholders Quota in LIC IPO

  • Policy should be bought on or before February 13, 2022.
  • Annuity policyholder is eligible, but not the beneficiary.
  • the Last date for updating PAN details in your policy was February 28, 2022.

LIC IPO Review

Ever since LIC announced its IPO plans, it became the talk of the town and more so after filing its DRHP in February 2022. Investors across the board were busy calculating its valuations considering its mammoth size of business and market share amidst competition. Now that it has filed RHP and its issue details are announced, its pricing mirroring embedded value and business growth trajectory appears reasonable. With its investor-friendly move with a discount to its pillars i.e. policyholders as well as retail investors, the issue has now turned more attractive. The government of India has again shown their investor-friendly gestures with such moves amidst troubling times like the Russia-Ukraine war, spiralling inflation, and weak global markets. Investors may consider investing in this mega insurer’s maiden mini offer for medium to long term rewards. Read detail review...

New LIC IPO Recommendation by Members

LIC IPO Recommendations Details | Post Recommendation | Manage Recommendations

Subscribe Neutral Avoid
46 3 12

LIC IPO Subscription Status (Bidding Detail)

The LIC IPO is subscribed 2.95 times on May 9, 2022 7:00:00 PM. The public issue subscribed 1.99 times in the retail category, 2.83 times in the QIB category, and 2.91 times in the NII category. Check Day by Day Subscription Details (Live Status)

CategorySubscription (times)
QIB2.83
NII2.91
Retail1.99
Employee4.40
Policyholder6.12
Total2.95

LIC IPO Prospectus

LIC IPO Rating

3822
4.1
Rating:Rated 4.1 stars
Vote Here ...

LIC IPO Listing Date

Listing Date Tuesday, May 17, 2022
BSE Script Code 543526
NSE Symbol LICI
Listing In A Group of Securities
ISIN INE0J1Y01017
IPO Price ₹949 per share
Face Value ₹10 per share

Listing Day Trading Information

.
IPO Price
Open
Low
High
Last Trade
BSE
₹949.00
₹867.20
₹860.10
₹920.00
₹875.45
NSE
₹949.00
₹872.00
₹860.00
₹918.95
₹875.25

Company Contact Information

Life Insurance Corporation of India (LIC)
Yogakshema, Jeevan Bima Marg
Nariman Point, Mumbai 400 021,

Phone: +91 22 6659 8732
Email: Investors@licindia.com
Website: http://www.licindia.in/

LIC IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: lic.ipo@kfintech.com
Website: https://karisma.kfintech.com/

LIC IPO Questions

  1. The listing gain in an IPO share depends on many factors:

    • Demand and supply of IPO shares on the day of listing
    • IPO shares pricing
    • The market situation on the day of listing
    • The demand for IPO shares (IPO oversubscription)
    • Russia Ukraine conflict

    It is not easy to predict listing gains in LIC IPO due to its large size. We have not seen such a large IPO in India before.

     

  2. It is difficult to say at this point. The decision depends on many factors like issue price, discounts offered, and the market situation on the day of listing.

    Note that IPO share price varies a lot in the first few weeks of listing. It is considered a high-risk investment as one can make or lose big money.

     

  3. LIC IPO opens on May 4, 2022 and closes on May 9, 2022.

     

  4. The LIC IPO price is ₹902 to ₹949 per equity share. A discount of Rs 45 is offered to Retail Investors and Rs 60 to LIC Policyholders.

    The effective price for LIC IPO shares at the upper price band will be Rs 949 for QIB and NII, Rs 904 for retail, and Rs 889 for Policyholders.

     

  5. You could check if your LIC policy is linked to your PAN by submitting an online request. Check PAN availability status in LIC Policy. You would need the following details to check:

    • LIC Policy Number
    • Date of Birth
    • PAN Number

    If your policy is linked correctly, you will get a message like "Your PAN details are available in our records as per input provided for the policy number."

     

LIC IPO FAQs

LIC IPO is a main-board IPO of 221,374,920 equity shares of the face value of ₹10 aggregating up to ₹21,008.48 Crores. The issue is priced at ₹902 to ₹949 per share. The minimum order quantity is 15 Shares.

The IPO opens on May 4, 2022, and closes on May 9, 2022.

KFin Technologies Limited is the registrar for the IPO. The shares are proposed to be listed on BSE, NSE.

Zerodha customers can apply online in LIC IPO using UPI as a payment gateway. Zerodha customers can apply in LIC IPO by login into Zerodha Console (back office) and submitting an IPO application form.

Steps to apply in LIC IPO through Zerodha

  1. Visit the Zerodha website and login to Console.
  2. Go to Portfolio and click the IPOs link.
  3. Go to the 'LIC IPO' row and click the 'Bid' button.
  4. Enter your UPI ID, Quantity, and Price.
  5. ‘Submit’ IPO application form.
  6. Visit the UPI App (net banking or BHIM) to approve the mandate.

Visit Zerodha IPO Application Process Review for more detail.

The LIC IPO opens on May 4, 2022 and closes on May 9, 2022.

LIC IPO lot size is 15 Shares and the minimum order quantity is .

You can apply in LIC IPO online using either UPI or ASBA as payment method. ASBA IPO application is available in the net banking of your bank account. UPI IPO application is offered by brokers who don't offer banking services. Read more detail about apply IPO online through Zerodha, Upstox, 5Paisa, Edelweiss, ICICI Bank, HDFC Bank and SBI Bank.

The finalization of Basis of Allotment for LIC IPO will be done on May 12, 2022, and the allotted shares will be credited to your demat account by May 16, 2022. Check the LIC IPO allotment status.

The LIC IPO listing date is on Tuesday, May 17, 2022.
Open an Instant Account with Zerodha

LIC IPO Message Board

Ranked Members List  Ranked Members List

Loading...