LIC is the largest insurance provider company in India. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
As of 30 Sep 2021, it has a total AUM of Rs. LIC operates through 2048 branches, 113 divisional offices, and 1,554 Satellite Offices. It operates globally in Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, UAE, Bahrain, Qatar, Kuwait, and the United Kingdom.
Key positive factors
LIC is a part insurance and part investment products company. Their plans are a combination of insurance and investment with a guaranteed return.
LIC has over 13.5 lakh agents who play brings most of the new business. LIC plans offer 'fixed returns' along with life insurance coverage. This makes it easy to sell by agents and brings peace of mind to the insurers.
LIC has high trust in the public for both life insurance as well as investment done with them. LIC is synonymous with insurance in India.
LIC manage asset of Rs 39 lakh crores. They own 4% of all listed stocks in India and more government bonds than the RBI.
Leading insurance provider company in India and fifth largest global insurer by GWP.
A range of life insurance products to meet varied insurance needs of individuals.
Key challenges
LIC has poor new policy growth as they continue losing market share to private insurance players, especially in urban areas.
The margin in insurance + investment products is low.
It's very difficult to value LIC as the business model is unlike any other company. The premiums they collect (part insurance and part investment) cannot be recognized as revenue.
| IPO Opening Date | May 4, 2022 |
| IPO Closing Date | May 9, 2022 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per equity share |
| IPO Price | ₹902 to ₹949 per equity share |
| Market Lot | 15 Shares |
| Min Order Quantity | 15 Shares |
| Listing At | BSE, NSE |
| Issue Size | 221,374,920 Eq Shares of ₹10 (aggregating up to ₹21,008.48 Cr) |
| Offer for Sale | 221,374,920 Eq Shares of ₹10 (aggregating up to ₹[.] Cr) |
| Retail Discount | Rs 45 per share |
| Employee Discount | Rs 45 per share |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
| IPO Opening Date | May 4, 2022 |
| IPO Closing Date | May 9, 2022 |
| Basis of Allotment | May 12, 2022 |
| Initiation of Refunds | May 13, 2022 |
| Credit of Shares to Demat | May 16, 2022 |
| IPO Listing Date | May 17, 2022 |
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 15 | ₹14,235 |
| Maximum | 14 | 210 | ₹199,290 |
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 96.50% |
| Investor Category | Effective Price |
|---|---|
|
QIBs |
Rs 949 |
|
HNIs |
Rs 949 |
|
Retail |
Rs 904 (Rs 45 discount) |
|
Policyholders |
Rs 889 (Rs 60 discount) |
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