This year has been a fantastic year for IPOs, though perhaps not in terms of investor returns. With new-generation firms like NYKAA and Paytm having a mediocre debut on the exchanges, all eyes are on Life Insurance Corporation of India (LIC), India’s trusted insurance provider. LIC  will be listed on both the National Stock Exchange of India Limited (NSE) and BSE Ltd (BSE)  The pricing and size of the LIC IPO have yet to be announced.

LIC of India is one of the first insurance companies to be started in India, which explains the level of trust and confidence it has earned over the years. Since its inception in 1956, LIC has consistently produced plans that are cost-effective and provide maximum coverage for the Indian people. LIC has expanded internationally in recent years, with branches in Fiji, Mauritius, Nepal, and Sri Lanka, among others.

LIC IPO details you don’t want to miss

  • Issue size – Yet to be declared
  • Issue Period – Yet to be declared
  • Price Band – Yet to be declared
  • Market Lot / Multiples – Yet to be declared

What is LIC IPO?

This IPO is highly important and gaining attention from the investors since the company has decided to treat existing LIC profiles differently. If you have a Life Insurance Company of India (LIC) policy, your application will be given priority over those who do not.

Purpose of LIC IPO

The purpose of the LIC IPO is to establish more discipline, transparency in the company’s operations and provide an opportunity for retail investors to invest in the company.

IPO Allocation

  • The Indian Government will continue to hold the majority of the stake after the IPO.
  • 10% allocation holding for policyholders/ LIC customers.

 

LIC IPO and Company Overview

Summary of Financial Information

Source

The Indian government on LIC IPO

Nirmala Sitharaman, the finance minister, stated in Budget 2020 that the government is considering listing Life Insurance Corporation of India on secondary markets by the second part of the year. With around 28 crore policies in force and an amount assured of Rs. 45 lac crores, LIC is India’s largest insurance provider.

In the financial year 2018-19, LIC’s annual premium receivable was Rs. 2 lac crores. As of March 31st, 2019, LIC had investments worth Rs. 30 lac crores. The IPO was approved by the Cabinet Committee on Economic Affairs in July 2021.

To assist reach disinvestment targets for the year, the center plans to list LIC on stock exchanges. The government of India intends to generate up to Rs 1 lakh crore with this IPO.

How will LIC policyholders benefit from this allocation?

Budget officials announced in the 2021-2022 fiscal year that up to 10% of the LIC IPO issue size would be earmarked for policyholders. Officials from the LIC have advised policyholders to update their PAN card information to take benefit of the proposed public offer.

As a LIC policyholder, you will need a Demat account as well as your PAN card information updated on your policy records to apply for LIC IPO. No other company in the history of Indian IPOs has gone to such lengths to prioritize its customers.

To link your PAN with LIC policy please visit the below link:

https://linkpan.licindia.in/UIDSeedingWebApp/

If you have already linked your PAN with the LIC policy, you can then check the PAN availability status at the below link:

https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus

Why should investors apply for LIC IPO?

With a total first-year premium of over 1.844 lakh crore in the fiscal year ended March 2021, LIC is India’s largest life insurer. It owns more than 66 percent of the market. LIC is India’s largest institutional investor, with a sizable investment portfolio.

With 2.9 lakh employees and a network of 22.78 lakh agents, it has a large employment base. Given the success of other PSU IPOs such as IRCTC, there is a reasonable expectation of a successful listing. This is surely a good event for retail investors with the announcement of the policyholder category.

How to apply for LIC IPO?

If you are an investmentz.com investor, apply for LIC IPO online directly from the app or the website.

For Non investmentz.com users: Just signup with us and apply for LIC IPO. No documentation is required. You can use your existing Demat account.

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