LIC IPO | Review - MONEYORBIT

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Life Insurance Corporation (LIC), has come up with an initial public offer (IPO). It will open on May 4-9, 2022 at Rs.902-949 a share. The IPO issue size is around Rs.21,008 crore. The minimum bid will be for 15 shares and in its multiples thereafter.

Overview

The most awaited IPO of the year is finally going to open on May 4, 2022. The most hyped thing about its IPO size has been reduced to Rs.21,000 cr. Earlier, the rumors were that it will be around Rs.60,000 cr. Today, LIC is the largest insurance provider in India. It has more than 60% market share in the insurance sector. LIC offers participating insurance products as well as non-participating insurance products such as ULIPs, term insurance products, health insurance, mutual funds, and annuity & pension products. Also, it is the biggest institutional investor in India for FY2021. It also has a global presence across the world. Apart from these, there are many interesting facts about LIC.

Promoters

President of India – 100%

Strength & Weakness

Strengths	Weaknesses
Highly trusted brand	Stiff competition from private players
Sovereign guarantee by Govt of India	Highly depends on the agents
Robust distribution network	Political risk
Highly experienced management team	Slow decision making
Robust risk management framework	Lower use of technology
Largest player in the Indian life insurance sector	Subject to complex regulatory requirements

Competitors

HDFC Life	Tata AIA Life	ICICI Prudential Life
Max Life Insurance	SBI Life	Bajaj Allianz

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2019	5,70,809.57	2,627.38
31-Mar-2020	6,45,605.47	2,710.48
31-Mar-2021	7,03,709.45	2,974.14
31-Dec-2021	3,36,972.92	1,504.01

Object of Issue

1) To achieve the benefits of listing on the exchange

2) Offer for Sale by the President of India

LIC IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	15	Rs.14,235
Maximum	14	210	Rs.1,99,290

LIC IPO details

IPO Opening Date	4th May 2022
IPO Closing Date	9th May 2022
Face Value	Rs.10 per Equity Share
IPO Price	Rs.902-949 per share
Market Lot	15 shares
Minimum Order Quantity	15 shares
Listing At	NSE, BSE
No. of shares offered	221,374,920 shares
Issue Size	Up to Rs.21,008.48 Crore
QIB Shares Offered	50% of the offer
Retail Shares Offered	35% of the offer
NII/HNI Shares Offered	15% of the offer

Discount

Retailers – Rs.45

Employees – Rs.45

Policyholders – Rs.60

LIC IPO Timetable

IPO Date	4-9 May, 2022
Allotment Date	12 May, 2022
Initiation of Refunds	13 May, 2022
Credit of share to Demat a/c	16 May, 2022
IPO Listing Date	17 April, 2022