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LIC IPO 2022
LIC is the largest and leading asset management player in India. It seems one of the reputed IPO(initial public offerings) with stable financial standing and robust market presence in Indian market in the year of 2022. It has become the biggest insurance provider company in India with a Strong distribution network over active 12 lakhs agents and 3300 Micro insurance agents, etc.
The biggest strength of LIC:
The company’s top 5 selling individual products in H1FY22(First Half of Fiscal Year) were:
| Products | New Policies |
| Jeevan Labh | 22.32% |
| New Endowment Plan | 18.50% |
| New Jeevan Anand Plan | 9% |
| Aadhaar Stambh | 8.5% |
| Aadhaar Shila | 7% |
The company also owns large stakes in companies in India such as
LIC IPO: Objectives
As LIC is a government-owned company so the main aim behind the LIC IPO is to meet the disinvestment of the Government, and to raise funds through offer for sale(OFS).
Key Features of LIC IPO
| IPO Opening Date : | Update Soon |
| Closing Date: | Update Soon |
| Size of IPO: | ~65416.29 crore |
| Listing | BSE,NSE |
| No. of Share : | ~31,62,49,885 |
| Price Band Per Share | ~Rs 2000 to 2100 |
| Anchor Investor Allotment: | 9th March 2022 |
| Lot Size: | ~7 share |
| No of share for employee: | ~1.58 crore |
| No. of share for Policy holder: | ~3.16 crore |
| Discount for Employees and Policy Holder | Maximum 10% |
| After discount the price of share | Rs.1890.00 |
LIC IPO: BENEFITS OF EMPLOYEE AND POLICYHOLDERS
According to LIC DRHP, Company has announced Employee reservation part is expected a max of 5% of the total issue. Similarly, LIC also expected to announce some discount for its policyholder and reservation at a max of 10% of the total issue size to encourage them to invest. All interested policyholders are advised to link their PAN with policy within 28th Feb’ 2022, also advise to open a Demat account.
LIC IPO: Subscription Details
LIC IPO date s yet to be announced after the approval of its proposal. According to market reports, the offer is expected to be released for registration by the end of January 2022.
LIC IPO: Lead Manager
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PEERS COMPANY STATISTICS
| Business Metric | LIC | SBI LIFE | HDFC LIFE | ICICI PRUDENTIAL |
| AUM (cr) | 3676180 | 220870 | 173839 | 214218 |
| Net Premium(cr) | 405398.5 | 49668.3 | 38122.3 | 34933 |
| NBP/Employee(cr) | 1.6 | 1.2 | 1.0 | 0.9 |
| Net Profit(cr) | 2974.1 | 1460 | 1360 | 960.2 |
| Solvency Ratio(%) | 1.8 | 2.2 | 2.0 | 2.2 |
| Claim Settlement Ratio(%) | 98.3 | 96.4 | 99.4 | 98 |
| EPS | 4.7 | 14.56 | 6.74 | 6.66 |
| ROE (%) | 81.7 | 15.2 | 17.6 | 11.7 |
NETWORK OF LIC
| Headquarter- | Mumbai |
| Zonal Office: | 8 |
| Divisional Office: | 113 |
| Computerized Branch | 2048 |
| Satellite Office: | 1408 |
| Direct Agent: | 1537064 |
| Corporate Agent | 342 |
| Referral Agent | 114 |
| Broker: | 114 |
| Tied Bank | 42 |
| No. of Employees | 114000 |
Key Statistics
| No. Policy Holder | 290 Million |
| Asset of LIC | 37.46 lakh crore |
| Revenue (FY 2021) | 7.04 lakh crore |
| Profit after Tax (FY 2021-22 (1st half) ) | 1437 crore |
| Market Value : | 5.5lakh crore |
| Premium Collected (FY 2020-21) | 1.84lakh crore |
| Paid out claims (FY 2020-21) | 1.34 lakh crore |
| Business Growth FY 2021 | Approx 10% |
FAQ: |
As per Red Herring Prospectus presented by LIC to SEBI, 10% of the total share reserve for policy holder.
The first public issue of shares by a LIC to investors that is wholly owned by a government. After that investors get the opportunity to buy and sell LIC stock on daily basis.
LIC is India’s largest insurance company and also the leader of premium collection and number of policies sold with good historical performance records.
Retail investors, employees of LIC, institutional investors and policyholders can apply for LIC IPO.
1) Go to office LIC website (www.licindia.in)
2) Click on link Aadhaar and Pan link
3) Enter your name as per Aadhaar/PAN, date of birth, mobile no.
4) Enter OTP received your mobile
5) Submit it
6) Successful registration process message will appear
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Disclaimer
All the information are used for education purpose only. Investing in IPO poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.
