Harshad
LIC IPO Date: The much-awaited issue of the initial public offering (IPO) of the government insurance company Life Insurance Corporation (LIC) is set to open this week on Wednesday, May 4 and The issue will be closed on Monday, May 9. The insurance company has set its price band for the initial share sale at ₹902 to ₹949 apiece.
Investors can bid for shares in lots of 15, or multiples of 15. Employees are entitled to 15.81 lakh shares, while policyholders are entitled to 2.21 crore shares. Retailers and employees would receive a discount of Rs 45, while policyholders will receive a discount of Rs 60.
The LIC IPO issue comprises of an offer for sale of up to 221,374,920 equity shares. LIC IPO is going to be a big contributor in government disinvestment targets for FY23. Out of the total disinvestment target of Rs.78,000 crore for FY23, the LIC IPO is expected to raise more than Rs.65,000 crore.
What are benefits for LIC Policyholders in LIC IPO?
LIC has reserved 10% of IPO shares for policyholders. Also, an Additional discount of Rs 60 per share for policyholders.
LIC policyholders can apply under this quota only if: 1. The policy is issued on/before 13 Feb 2022 2. The PAN is linked to LIC Policy
About LIC IPO
The Life insurance pot of India was established on 1 September 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance assiduity in India. Over 245 insurance companies and provident societies were intermingled to produce the state- possessed Life Insurance Corporation of India.
As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3 trillion. The total value of vended programs in the time 2018 – 19 is ₹21.4 million. Life Insurance Corporation of India settled 26 million claims in 2018 – 19. It has 290 million policy holders.
LIC invests in sectors similar as banks, cement, chemicals and diseases, electricity and transmission, electrical and electronics, engineering, construction and structure, presto- moving consumer goods, finance and investments, healthcare, hotels, information technology, essence and mining, motor vehicles, and ancillaries, Oil and natural coffers, retail, textiles, transportation, and logistics.
LIC individual products comprise
(i) participating insurance products and
(ii) non-participating products, which include
a. savings insurance products
b. term insurance products
c. health insurance products
d. annuity and pension products
e. unit-linked insurance products
LIC Corporation’s omni-channel distribution platform for individual products currently comprises
(i) individual agents,
(ii) bancassurance partners,
(iii) alternate channels (corporate agents, brokers, and insurance marketing firms),
(iv) digital sales (through a portal on the Corporation’s website),
(v) Micro Insurance agents and
(vi) Point of Sales Persons-Life Insurance scheme.
LIC IPO Date, Market Lot & Price Band
| IPO Opening Date | 4 May 2022 |
|---|---|
| IPO Closing Date | 9 May 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) |
| Retail Discount | Rs 45 per share |
| Employee Discount | Rs 45 per share |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
LIC IPO Timeline (Tentative Timetable)
| Issue Period | 4th May to 9th May 2022 |
| Finalization of Allotment | 12th May 2022 |
| Initiation of Refunds | 13th May 2022 |
| Credit of Shares | 16th May 2022 |
| Date of Listing | 17th May 2022 |
| Mandate end date | 24th May 2022 |
| Anchor Investors Lock-In End Date | 8th June 2022 |
LIC IPO Valuation
Due to global economic factors, the government has reduced the valuation to 6 lakh crores. The government will now sell its 3.5 percent stake in it for Rs 21,000 crore. The embedded value of LIC was Rs 5.4 lakh crore as of 30 September 2021. Going by the upper price band, the issue is priced at a value of 1.1 to embedded value at a valuation of Rs 6 lakh crore.
| PARTICULARS | VALUE |
|---|---|
| Upper Price Band | Rs 949 |
| Existing Shares (Qty) | 632.4 Cr |
| Market Cap | 600147.6 Cr |
| EPS (FY21) | Rs 4.70 |
| PE Ratio | 201.9x |
| Industry PE | 79.7x |
LIC IPO Grey Market Premium
Click here to know about Today LIC IPO Grey Market Premium
LIC Financial highlights
| Financial Year | Total Assets (In Cr) | Profit After Tax (In Cr) |
|---|---|---|
| FY 2020 – 21 | Rs. 37,46,404 | Rs. 2,974 |
| FY 2019- 20 | Rs. 34,14,174 | Rs. 2,710 |
| FY 2018 – 19 | Rs. 33,66,335 | Rs. 2,627 |
Local Peer Comparison
LIC RONW is way about the peer group as you can see in the table below.
| Name of the company | Net Profit (in Rs. crores) | Networth (in Rs. Crores) | Basic EPS | NAV Rs. per share | PE | RoNW % |
|---|---|---|---|---|---|---|
| Life Insurance Corporation of India | 2974.1 | 6514.6 | 4.7 | 10.3 | NA | 45.7% |
| SBI Life Insurance Company Limited | 1455.8 | 10400.4 | 14.56 | 103.99 | 81.46 | 14.0% |
| HDFC Life Insurance Company Limited | 1360.9 | 8637.7 | 6.74 | 42.75 | 94.26 | 15.8% |
| ICICI Prudential Life Insurance Company Limited | 956.2 | 9119.4 | 6.66 | 63.51 | 81.83 | 10.5% |
Global Peer Comparison
LIC ranks fifth among life insurers in the world.
| Company Name | Country | Gross Written Premium $m (2020) | Total Assets $m (2020) | Life Premiums $m (2020) |
|---|---|---|---|---|
| Allianz SE | Germany | 99,583 | 1,272,014 | 88,853 |
| Ping An Insurance | China | 115,635 | 1,380,851 | 74,134 |
| China Life Insurance | China | 88,734 | 616,291 | 69,651 |
| Assicurazioni Generali S.p.A | Italy | 84,845 | 653,652 | 58,268 |
| LIC of India | India | 56,405 | 507,333 | 56,405 |
| Nippon Life Insurance | Japan | 39,838 | 705,002 | 39,838 |
| AXA S.A | France | 112,698 | 965,747 | 37,829 |
| Japan Post Insurance | Japan | 24,369 | 633,845 | 34,223 |
| Dai-chi Life Holdings | Japan | 41,644 | 559,853 | 27,024 |
| North Western Mutual | US | 19,323 | 308,767 | 15,720 |
| MetLife Inc. | US | 49,486 | 795,146 | 14,200 |
| People’s Insurance of China | China | 75,447 | 182,038 | 13,665 |
LIC Market Share
| Market Share – FY21 | Total Premium | New Business Premium | Renewal Premium | No. of Policies (Individual) | No. of Policies (Group) |
|---|---|---|---|---|---|
| LIC | 64.10% | 66.20% | 62.50% | 74.60% | 81.10% |
| SBI Life | 8.00% | 7.40% | 8.50% | 5.90% | 1.30% |
| HDFC Life | 6.10% | 7.20% | 5.20% | 3.50% | 0.70% |
| ICICI Prudential Life | 5.70% | 4.70% | 6.50% | 2.40% | 7.40% |
| Max Life | 3.00% | 2.40% | 3.50% | 2.30% | 1.00% |
| Bajaj Allianz Life | 1.90% | 2.30% | 1.60% | 1.50% | 0.60% |
| Others | 11.20% | 9.80% | 12.20% | 9.80% | 7.90% |
| Private players total | 35.90% | 33.80% | 37.50% | 25.40% | 18.90% |
How to apply for LIC IPO for policyholders?
- Login to your Zerodha account and select the issue in the current IPO section
- Enter the number of lots and price at which you wish to apply for
- Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
- You will receive a mandate notification to block funds in your UPI app
- Approve the mandate request on your UPI and funds will be blocked
Contact Details of LIC IPO
LIC IPO Register Address
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: lic.ipo@kfintech.com
Website: https://karisma.kfintech.com/
LIC Address
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: https://www.licindia.in/
LIC IPO FAQs
What is LIC IPO?
The government of India is diluting its partial stake in LIC by launching the IPO and inviting the public to participate in its equity. The issue is entirely an offer for sale (OFS) by the government of India, which will offload 22.13 crore equity shares, aggregating to a 3.5 per cent stake of the company.
What is the date of LIC IPO?
LIC’s IPO will open for subscription from 4 May to 9 May.
What is LIC IPO price?
The price band of the LIC IPO is set at Rs.902 to Rs.949 per equity share.
What is the GMP of LIC IPO?
Click here to check LIC IPO GMP Today Price
When is the LIC IPO Allotment date?
Life Insurance Corporation of India (LIC) IPO Allotment date is 12th May 2022
When is the LIC IPO listing date?
The public issue will list on both NSE and BSE and the tentative listing date of the public issue is 17th May 2022.
