The Life Insurance Corporation of India (LIC) is, India’s largest life insurer, has been in operation for more than 65 years. Around 245 private life insurance businesses were merged and nationalized to become LIC in 1956. For Fiscal 2021, it holds a 64.1 percent market share in terms of premiums (or GWP), 66.2 percent market share in terms of New Business Premium (or NBP), 74.6 percent market share in terms of individual policies issued, and 81.1 percent market share in terms of group policies issued.
It is also India’s largest asset manager. It was the country’s only life insurance business until 2000. LIC’s product line is diverse and covers a wide range of categories in both individual and group products. Savings insurance products, term insurance products, health insurance products, annuity, and pension products, and unit-linked insurance products are all examples of these.
Strength and Risk Involved
- It has an extensive agent network, a proven track record, and a 65-year history.
- GWP is the world’s fifth-biggest life insurer and the most significant participant in India’s fast-growing and underserved life insurance market.
- A well-known brand and a customer-focused business approach
- A cross-cyclical product mix that meets a variety of customer demands, as well as an individual product portfolio dominated by participating life insurance policies
- We have a presence across India through an Omnichannel distribution network and an unrivaled agency force.
- It is the largest asset manager in India, with a track record of financial performance and profitable growth.
- Highly competitive industry.
- The company depends on selling participating products and single premium products for its revenue.
- Unfavorable publicity that impacts its brand image, name, and perception
Likely, the wait has finally ended. The LIC IPO is planned to launch for anchor investors in March and other investors a few days later. By the first week of March, the insurance giant is expected to receive regulatory permission, after which an approximate marketing pricing band will be established.
Offer for Sale
In line with Section 5(9)(c) of the Life Insurance Corporation Act, the LIC board has authorized the Offer for Sale of up to 316,249,885 equity shares. As determined by LIC, the shares have a face value of Rs 10 apiece. The insurance behemoth will declare the pricing band (BRLMs) after discussions with the book-running lead managers. Employees and policyholders who are eligible for a discount will be notified.
How to Apply for LIC IPO?
It is now inactive; however, you may apply for LIC IPO once the stock is listed on the exchange. Individuals can begin acquiring IPO stock when the underwriting bank establishes the price and the exchange begins trading. When it begins, you may open an account with IIFL Securities, which will allow you to purchase and sell stocks effortlessly.
Investors will have various options for purchasing shares, and with its app, it will be simple to invest in equities. You can also subscribe to the LIC IPO on the IIFL Securities website. You’ll discover all there is to know about upcoming initial public offerings. You may also keep track of current, future, and finished initial public offerings. The IIFL Trading Terminal (TT) platform may also get used to acquiring first public offerings (IPOs). IIFL Markets customers can use the company’s website or the IIFL Markets mobile app to apply for an IPO. IIFL offers a paperless and hassle-free online initial public offering (IPO) application.
Who Can Apply for the LIC IPO?
Anyone with a Demat account can participate in the LIC IPO. However, some of them will be given a specified number of shares depending on their application when the business announces the allotment.
LIC policyholders can purchase the shares at a discounted rate of 5%. As a result, policyholders will get a maximum of 10% of the total shares.
You must link your PAN Card to your LIC policy to enjoy the discount.
A minimum of 35% of the component will get reserved for retail investors, who will purchase shares from that portion.
Objects of the Issue
The net revenues from the IPO will be used for the following purposes:
- First, to get the benefits of stock exchange listing of equity shares.
- Selling stockholders will make an offer to sell 316,249,885 shares.