LIC or Life Insurance Corporation of India is the biggest insurance company in India. It covers more than 65% of the entire insurance market in India. In September 2021 the AUM of the enterprise was noted to be at 39 Lakh Crore Rs. The company has 2048 branches, 1554 Satellite Offices and 113 divisional offices. The networking of the company is spread through its 13.5 Lakh LIC agents across India and many other countries. The company performs international business in Mauritius, Fiji, Nepal, Singapore, Bahrain, UAE, Sri Lanka, Kuwait, United Kingdom etc.
IPO DETAILS
Life Insurance Corporation of India IPO is set to launch on 4th May, 2022. The subscription timeline extends till 9th May, 2022. The size for the IPO is 21008.48 Crore Rs.. No Shares are given through Fresh Issue mode. Shares issued through Offer for sale are worth Rs. 21008.48 Crore. The lot size is 15 shares and the price range is 902 Rs. – 949 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is KFin Technologies Limited.
TABULAR REPRESENTATION OF IPO DETAILS
| IPO OPENING DATE | 4th May, 2022 |
| CLOSING DATE FOR IPO | 9th May, 2022 |
| ISSUE TYPE | Book Built Issue |
| Face Value per share | 10 Rs. per share |
| IPO price band | 902 Rs. – 949 Rs. |
| LOT SIZE | 15 shares |
| MINIMUM ORDER QUANTITY | 15 shares |
| ISSUE SIZE | 21008.48 Crore Rs. |
| OFFER FOR SALE | 21008.48 Crore Rs. |
| FRESH ISSUE | No Fresh Issue |
| LISTING AT | NSE, BSE |
| LISTING DATE | 17th May, 2022 |
IMPORTANT DATES
| IPO OPENING DATE | 4th May, 2022 |
| CLOSING DATE FOR IPO | 9th May, 2022 |
| IPO ALLOTMENT DATE | 12th May, 2022 |
| REFUNDS | 13th May, 2022 |
| DEMAT A/C CREDITED ON | 16th May, 2022 |
| IPO LISTING DATE | 17th May, 2022 |
Life Insurance Corporation of India IPO begins for subscription from 4th May, 2022. The IPO subscription would continue till 9th May, 2022. The allotment status for the shareholders who applied would come on 12th May, 2022. The refunds for the ones who did not get allotment would be initiated on 13th May, 2022. The DEMAT accounts of shareholders would be credited on 16th May 2022. The listing of the company would be accompanied on 17th May, 2022.
Lead Managers And Promoters
The promoters of the company are the Government of India and the President of India (working through the Indian Ministry of Finance).
The lead managers are :
- BoFA Securities India Limited
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- Citigroup Global Markets India Private Limited
- ICICI Securities Limited
- Goldman Sachs India Securities Private Limited
- Nomura Financial Advisory and Securities India Limited
- JM Financial Consultants Private Limited
- J.P. Morgan India Private Limited
- SBI Capital Markets Limited
The minimum lot size for the company is decided at 15 shares. This holding accounts to 14235 Rs.. The maximum lot size is decided at 210 shares. This amounts to 199290 Rs.. Hence the company’s final holdings would be set as :
| Shares | Amount | |
| Minimum | 15 shares | 14235 Rs |
| Maximum | 210 shares | 199290 Rs. |
OBJECTIVES FOR THE IPO
- The funds can be utilised for General corporate purposes.
- The company also plans to utilise the money for further business growth purposes.
COMPANY FINANCIALS
| Particulars (in Million Rs.) | Dec. 2021 | 2020-21 | 2019-20 |
| ASSETS | 40907867 | 37464044 | 34141745 |
| PAT | 17153 | 29741 | 27104 |
The asset base of LIC is amazing. The company has more than 40907867 Million Rs of Assets in Dec 2021 which have been increasing at a steady pace of 3000000 Million Rs every year. The problem may be at the profit margin of the company. The company has been enratin just 0.07% as the profit margin as compared to its asset base. The ratio has been consistent over the years. However the roodt figures have been also increasing at a steady pace of 2000 Million Rs.
PROS
- Huge asset base.
- The biggest insurance company of India covers almost 65% of the entire market.
- Networking is spread across 13.5 Lakh LIC Agents.
- The brand name of LIC is highly trusted.
CONS
- Huge IPO size can result in unfulfilled subscriptions.
- The profit ratio in comparison to the asset base is just 0.07%
Life Insurance Corporation of India IPO APPLICATION PROCESS WITH ZERODHA
It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :
- Logging into Zerodha console through its website or KITE platform.
- Clicking the IPO link present in the Portfolio section.
- Click the Life Insurance Corporation of India IPO button and press the BID button.
- Entering the details asked for like UPI ID, Quantity and price.
- Submit the application form for the IPO.
- Visiting the application of UPI for approving the transaction.
Now, applying for an IPO online is possible with most of the Discount and online brokers.
