Insurance behemoth LIC to raise upto ~₹18,757 crores through capital markets.
IPO offer opening on 4th May and will end on 9th May having issue price between Rs 904 to 949 per share with minimum application lot size of 15 shares
Offering discount of Rs45 to Retail and Rs60 per share to Policyholders category.
Promoters of LIC is the President of India acting through the Ministry of Finance, Government of India
| IPO Opens | IPO Closes | Price Band (₹/Sh) | Min Retail Application (₹) | Listing Date (On or about) |
|---|---|---|---|---|
| 4-May-2022 | 9-May-2022 | 904 to 949 | 13,560 | 17-May-2022 |
About Industry
There are currently 24 life insurance companies in India, with Life Insurance Corporation being the sole public player. The size of the Indian life insurance industry was ₹6.2 trillion on a total-premium basis in Fiscal 2021, up from ₹5.7 trillion in Fiscal 2020. The industry’s total premium has grown at 11% CAGR in the five years ended Fiscal 2021. CRISIL Research forecasts the industry’s total premium to grow at 14-15% CAGR over the next five years, to reach close to ₹12.4 trillion by Fiscal 2026. (Source: CRISIL)
Key Pointers
- Strong presence across India through 1.33 million individual agents; 70 bancassurance partners; 215 alternate channel; A portal Corporation’s website for digital sales; 2,128 active Micro Insurance agents; and 4,769 Point of Sales Persons-Life Insurance scheme.
- Diversified portfolio with a focus on core life insurance operations
- Fifth largest life insurer globally by GWP and the largest player in the fast growing and underpenetrated Indian life insurance sector
- Trusted brand and a customer-centric business model
- Cross-cyclical product mix that caters to diverse consumer needs and an individual product portfolio that is dominated by participating life insurance policies
- Harnessing technology capabilities to support customer connect and drive operating efficiencies.
- Largest asset manager in India with an established track record of financial performance and profitable growth
- Robust risk management framework
- Highly experienced and qualified management team, distinguished Board and strong corporate governance framework
- Robust risk management framework
LIC IPO Snapshot
| Issue Open | 4-May-2022 |
| Issue Close | 9-May-2022 |
| Face Value | ₹ 10/- |
| Price Band | ₹ 904 to ₹ 949 (Including premium of ₹ 894 to ₹ 939 per share) |
| Discount | Rs45 to Retail and Rs60 per share to policyholders categoru |
| Bid Lot | 15 shares and in mutiples |
| Listing on | BSE and NSE |
| Mode of Payment | UPI / ASBA (Mandatory); Applications using third party UPI/ASBA Bank accounts are liable to rejected |
LIC Issue & Subscribed Details
| Particulars | Issued | Subscribed |
|---|---|---|
| Issue Size | ₹18,757 Crores (Upper Band) | ₹ - Crores |
| QIB Portion | ~50% | TBA times |
| NII Portion (Application for lot size of 15 & above) | ~15% | TBA times |
| Retail Portion (Applications for lot size between 1 & upto 15) | ~35% | TBA times |
| Employees Portion | upto 1,581,249 shares | TBA times |
| Policyholders | upto 22,137,492 shares | TBA times |
| Total | 100% | TBA times |
LIC IPO Indicative Dates
| Issue Open | 4-May-2022 |
| Issue Close | 9-May-2022 |
| Anchor Investor Bidding | One working day prior to Issue opening date of 4-May-2022 (around 3-May-2022) |
| Announcement of Allotment | 12-May-2022 |
| Initiation of Refunds | 13-May-2022 |
| Credit of Shares | 16-May-2022 |
| Listing (Commencement of trading on Stock Exchanges) | 17-May-2022 |
Lead Managers of LIC IPO
List of Book Running and Lead/Co-Lead Manager/s
Registrar of LIC IPO
| KFin Technologies Private Limited |
Valuation
Company is looking at the following valuation
| Issue Size | ₹ 18,757 Crores (Upper Band |
| Pre-Issue Promoter's Holding | *% |
| Post Issue Promoter's Holding | TBA% |
| Pre-Issue Shares | - Crores |
| Post Issue Shares | - Crores |
| Post Issue Market Cap (based on Price band) | ₹ TBA to ₹ TBA Crores |
Check Allotment Status of LIC IPO
| Please check below or visit here to check allotment status of IPO |
Source: DRHP, RHP, Company, Company Website | Logo/Images published in the article may be copyright of respective companies.
Frequently Asked Questions (FAQ)
| Q. How to Apply for IPO ? A. IPO can be applied Online and Offline mode. Online: a) Via Net banking of Bank website b) Via Stock brokers portal Offline: a) Collect application forms from Brokers > Fill demat details & UPI > Submit to any broker across India. b) Download forms from NSE/BSE website > Fill demat details & UPI > Submit to any broker across India. |
| Q. How to register for BHIM UPI? UPI is made mandatory by SEBI to apply for IPO's. To educate investors National Payment Corporation of India (NPCI) has come out with the useful video. This video educates on how to download BHIM UPI app and its process to register. Source: NPCI |
| What is UPI based ASBA Process ? To educate people to apply for IPO's National Payment Corporation of India (NPCI) has come out with the useful video. This video educates consumers on how the IPO process works and how subscribing for IPOs via BHIM UPI helps reduce the time and effort one needs to take for the same. Source: NPCI |
| Q3? Ans Source: NPCI |
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