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LIC IPO Dates, Review, Issue Price & GMP

LIC IPO: Life Insurance Corporation of India (LIC) is soon coming up with an Initial Public Offering (IPO) with an Issue Size of around 8 billion dollars.

About Life Insurance Corporation (LIC)

Life Insurance Corporation (LIC) has a widespread establishment of 4700 branches, satellite, and mini offices across India as of September 30, 2021. These branches are distributed among 113 divisions under 8 zonal offices.

When put into comparison, the company is standalone and it is 3.3 times the total AUM of life insurance players in India. It weighs about 18.5 percent of India’s annualized GDP fiscal 2022.

However, LIC is the foremost asset manager in India with an AUM of INR 39.56 lakh crore. The company has listed equity of 4 percent of the total market capitalization of NSE. LIC ranks in the 8th position in the global scenario on March 31, 2021.

LIC IPO Summary:

IPO Opens onWill be updated soon
IPO Closing DateWill be updated soon
Issue SizeWill be updated soon
Lot SizeWill be updated soon
Price RangeWill be updated soon
Min. InvestmentWill be updated soon
Listing atBSE & NSE
Retail Share
QIB Share
NII Share

LIC Polic:yholders Category

  1. Policyholder is a new category that is introduced into the system for LIC IPO. The category reserves upto 10 percent of the IPO issues and in this process two essential facts are to be listed in the prospectus.
  2. The customer must have purchased a LIC policy on or before February 13, 2022.
  3. The customer must have mapped their PAN to their LIC policy on or before February 13, 2022.
  4. Note:
    1. A policyholder having a demat/trading account with the Zerodha Brokerage company should utilize a PAN number declared for the LIC policies earlier. 

Posive Factors

  1. LIC assures their customers to fulfill two important components of their investments. The first part is insurance and the second is investment. In addition, on the customers investment the company ensures a guaranteed return.
  2. The insurance corporation operates 13.5 lakh agents to bring new businesses. The insurance agents sell policies that provide life insurance cover and issue fixed returns and such policies harvest peace and tranquility in the minds of insurers.  
  3. With its long stand in Indian insurance markets, the company has gained a high trust among the public.
  4. An individual has options  to prefer different insurance schemes suitable to one’s life. Hence, a wider range of insurance products allow an investor to make decisions on greater choice.

Key Challenges

  1. In Urban areas, private players are gaining over LIC in acquiring greater market share in the insurance sector year on year. LIC is still working towards traditional ( endowment policies) and doesn’t have a ‘strong policy growth’ to face challenges.
  2. The insurance business produces low margin and still it is found to have a low investment in insurance products.
  3. The business models involved in LIC don’t state to be profitable in generating huge revenue.
  4. LIC does fundamentally hold endowment policies that don’t invest in equity markets. Hence, the returns on the investment remain low.
  5. Moreover, in LIC, premiums are collected and put in debt ,markets and assurance is given to lives at risk and a guaranteed return if the policy mentions it.
  6. However, these years LIC has also begun to invest in equity markets like other competitors, ICICI Prudential, Birla Life Insurance and so on.

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