India’s biggest and most awaited IPO – LIC IPO & Everything you need to KNOW.

As a financial institution for such a long time and continued to be unlisted for so long, it was considered something unthinkable when LIC decided to list on the public markets.

LIC IPO: India's biggest and most awaited IPO - everything you need to Know
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And LIC was always an investor and now today LIC is coming before the investors to get invested in!

This is truly a historical movement for Indian capital markets in India which is the listing of the life insurance corporation of India.

LIC IPO: All you need to know about

Life Insurance Corporation (LIC) launches the initial public offering (IPO) on April 27, 2022

IPO Opening DateMay 4, 2022
IPO Closing DateMay 9, 2022
Basis of AllotmentMay 12, 2022
Initiation of RefundsMay 13, 2022
Credit of shares to DematMay 16, 2022
IPO Listing DateMay 17, 2022

Objects of the issue

The IPO aims to:

  1. To list the equity shares on the National stock exchange & Bombay stock exchange.
  2. To carry out an offer for the sale of 221,374,980 shares by selling shareholders.

Lot Size I Price Band I IPO Reserve

Lot Size

ApplicationLotsSharesAmount (Cut-off)
Minimum11514,235
Maximum14210199,290

Price Band

Price Band(at discount)Investor Category
842-889(at Rs. 60 discount) Policyholder
857-904 (at Rs. 45 discount) Employees & Retail
904-949(at Rs. 45 discount)Institutional Buyers
IPO Reserve
10% Reserved for Policyholders
35% for Retail Investors
15lakh shares – employee reserved

Promotor holding

Pre Issue Share Holding100%
Post Issue Share Holding96.50%

LIC IPO subscription rate & GMP status

Investors CategorySubscription Rate (times)
Qualified Institutional Investor2.83x
Non-Institutional Investor2.91x
Retailed Individual Investor1.97x
Employees4.36x
Policyholders6.06x
Total2.94x

LIC IN NUMBERS (Stats)

India’s largest life insurer – Life Insurance of India (LIC), has been providing life insurance for over 65 years.

It was the fifth-largest insurer globally amongst the top10 by total assets on basis of fiscal 2021.

The 2nd most valued brand across India.

Most valued brands in India, by brand value (in billion U.S dollars)

Most valued brands in IndiaBrand value (in billion U.S dollars)
HDFC BankUS$20.2
LICUS$18.2

Amongst the top10 in terms of global valuable brands in the insurance sector.

Brand LIC is the 3rd strongest global insurance brand with ~279mn policies being serviced and a 1.33mn agents network.

LIC issued approximately 21mn individual policies in India in FY21, representing approximately 75% market share in new individual policy insurance. (Source: the CRISIL Report)

LIC has an AUM of Rs. 40,122bn (US$540.0bn), which is 1.1x of the entire Indian mutual fund industry AUM.

This is the largest IPO in Indian capital markets history.

LIC – THE GIANT
~ 28.62 Crore Policies
~ 38.04 Lakh Crore Assets
~ 121 Zonal & Divisional Offices
~ 2048 Branch Offices
~ 1546 Satellite Offices/Sub-Branches
~ 1.08 Lakh Employees
~ 13.53 Lakh Agents
~ 75.90% – Market Share

Financials OF LIC IPO

31-Dec-2131-Mar-2131-Mar-2031-Mar-19
Total Assets40,907,867.7837,464,044.6834,141,745.7433,663,346.17
Profit After Tax17,151.1229,741.3927,104.7826,272.78

LIC IPO – Apply or avoid?

Very Low downward risk from current valuation

Retail investors discount45
policyholder discount60

LIC is a portfolio stock for long-term holding but, don’t consider it if you are looking for short-term listing gains. – I would consider applying for the IPO if I were you!

Disclaimer!

"ONLY FOR INFORMATION AND EDUCATION PURPOSE, PLEASE DO YOUR MARKET RESEARCH OR CONSULT YOUR ADVISOR BEFORE INVESTING"

Now we’d like to hear from you:

LIC IPO – Apply or Avoid?

If you have any comments, please leave them below right now!

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4 Responses

    1. Yes Abdul, investors can apply for both retail and policyholders category (with a limit of Rs 2 lakh in each category).
      Retail discount: Rs 45
      Policyholder discount : Rs 60
      [Know More]