LIC IPO – Make Money with LIC IPO Investment of Rs.13530 for 15 Shares – Top Insurance Firm LIC IPO
LIC IPO – Details
Life Insurance Corporation of India is an Indian statutory insurance and investment corporation headquartered in the city of Mumbai, India. It is under the ownership of Government of India
The Life Insurance Corporation of India (LIC) IPO is likely to be the biggest initial public offering in the Indian stock market. Meanwhile, The government has reserved 10% which is around 3.16 crores of shares of LIC through IPO.
Opening Date May 4, 2022
Closing Date May 9, 2022
Price Band ₹902 – ₹949 per equity share
Issue Size 21,000 Cr
Face Value ₹10 per equity share
Market Lot 15 Shares
Listing at NSE, BSE
LIC IPO Important Dates
| IPO Open Date | May 4, 2022 |
|---|---|
| IPO Close Date | May 9, 2022 |
| Allotment Date | May 12, 2022 |
| Initiation Of Refunds | May 13, 2022 |
| Credit Of Shares To Demat Account |
May 16, 2022 |
| IPO Listing Date | May 17, 2022 |
| UPI Mandate Expiry Date | May 10, 2022 |
LIC IPO – Perks for Policyholders
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:
- The policy is issued on/before 13 Feb 2022
- The PAN is linked to LIC Policy
Important Links for Policyholders
About LIC of India
LIC is owned by the Government of India. It is the only life insurance company with an extensive presence in rural and urban areas. It operates through 8 zonal and 113 divisional offices.
LIC IPO Objectives
– The government aims to get 21,000 crores by offloading 3.5% of its shares.
– Enhance the brand image & provide a public market for the equity shares in India.
Why should you invest in LIC IPO?
Below are your top 2 reasons:
• LIC has 65 years of lineage and a network of 13 lakh agents.
• Has a reliable risk management framework.
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 |
LIC’s investee companies
Here are some of the most noteworthy investees of LIC :
| Stock | Quantity Held | Holding % |
|---|---|---|
| Canara Bank | 133,627,205 | 8.11% |
| PTC India Ltd. | 17,654,072 | 5.96% |
| Bank Of Baroda | 248,334,291 | 4.80% |
| ABB Power Products And Systems India Ltd. | 1,881,348 | 4.44% |
| Biocon Ltd. | 49,374,988 | 4.11% |
| Titan Company Ltd. | 35,163,104 | 3.96% |
| ABB India Ltd. | 8,376,287 | 3.95% |
| Reliance Infrastructure Ltd. | 6,989,930 | 2.68% |
| Hindustan Zinc Ltd. | 96,246,636 | 2.28% |
| Aditya Birla Capital Ltd. | 51,407,882 | 2.13% |
| Aban Offshore Ltd. | 1,000,000 | 1.71% |
| BEML Ltd. | 515,435 | 1.24% |
| Indian Overseas Bank | 228,087,493 | 1.21% |
How to apply for LIC IPO?
Here is your quick checklist for LIC IPO:
UPI
- Link your bank account to a UPI ID.
- Register your UPI id with your Demat account.
- Subscribe for LIC IPO and approve the payment on your UPI ID.
LIC IPO – Noteworthy Highlights
LIC is the only government-owned insurance company in the country. The entity was formed by merging around 245 insurance companies. Other highlights include :
• Besides life insurance, the company also extends mutual funds, pension funds, housing finance, and card services.
• As of 31 March 2021, there were around 13.53 lakhs individual LIC agents.
• It has more than 1.14 lakh employees. LIC employees are also offered a discount of Rs.45/- per share.
LIC IPO – SWOT Analysis
Strengths
- Multiple offerings: LIC offers various insurance plans. The most popular products include life insurance policies, money back plans, endowment plans, insurance riders, and term insurance plans.
- Diversified business portfolio: LIC boasts a diversified business portfolio. Some of its most noteworthy lines of business include LIC Housing Finance, LIC Pension Fund, LIC Card Services, and LIC Mutual Fund.
- Sizeable fund base: The company operates with a fund base of nearly Rs. 289.57 crores. Additionally, India’s largest investor has a robust financial standing with sufficient flexibility to grow and expand its portfolio further.
Weaknesses
- Restrictions on PSU: LIC is subject to various restrictions since it’s a PSU. Such restrictions could emerge as a roadblock to the operational and expansion goals of this company.
- Large workforce: LIC has more than 1 lakh employees. Maintaining such a large workforce can become challenging, especially during a financial crisis.
Opportunities
- Online services: The online offerings of LIC cater to a large pool of tech-savvy customers. LIC could tap into the urban market like never before by leveraging the IPO proceeds to establish an extensive digital footprint.
- Increase in disposable income: A surge in individuals’ disposable income and greater awareness about the importance of being insured could continue to favour LIC’s growth.
Threats
- Competition: Several private insurance policy companies and NBFCs are now active in the market. The unique offerings and more customised services of these competitors could pose a threat to LIC.
- Changes in the fiscal policy: Changes in RBI’s monetary and fiscal policies can prompt LIC to modify its policies accordingly. Such changes can be counterintuitive to the company’s earnings or scope of operations.