LIC IPO, The Largest IPO Ever in India


LIC IPO: The dominant player in India’s life insurance market, Life Insurance Corporation, opens its initial public offering for subscription Wednesday in the country’s largest-ever IPO.

The government is selling a 3.5% stake in state-owned insurance behemoth LIC for an estimated $2.74 billion. The corporation will offer about 22.13 million shares for between 902 and 949 Indian rupees. LIC had a monopoly in India’s insurance market until 2000 and is still the dominant player, commanding about two-thirds of the life insurance market.

LIC IPO Details

  • Bidding Dates 04th-9th May 2022
  • Min. Investment 13530 (Lot 15)
  • Price Range INR 902-949

How to Apply for LIC IPO?

Investors and LIC policyholders need to have a demat account to apply for the LIC IPO. They can use different brokerage apps like Groww, Upstox and Zerodha or use the platform of any other depository participant (DP) to book the issue.

For policyholders: If you are a LIC policyholder, you will have to first link your both policy and Demat account with your Permanent Account Number (PAN).

There are currently 24 life insurance companies in India, with LIC being the sole public player.

The Life Insurance Corporation (LIC) will be the country’s largest company in terms of revenue and assets when it lists on the stock exchanges, but it will count as a mid-size company in terms of profit and net worth.

The insurance behemoth report revenues of around Rs 7.04 trillion in FY21, nearly 40 per cent more than those of Reliance Industries Ltd (RIL), which topped the charts in the listed space with Rs 5.05 trillion last financial year, while LIC’s assets, at Rs 37.46 trillion, were nearly three times those of RIL.

About LIC

LIC was form by merging and nationalizing as many as 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. The insurer’s group product portfolio comprises 11 group products.

As of December 2021, LIC had a market share of 61.6 per cent in terms of premiums or Gross Written Premium (GWP), 61.4 per cent in terms of new business premium, 71.8 per cent in terms of the number of individual policies issue, and 88.8 per cent in terms of the number of group policies issued.

LIC has an estimated base of 250 million policyholders, is an asset-rich organization. As of March 2021, LIC’s asset base had surpass $520 billion, with investments of $503 billion and a life fund of $470.70 billion.

Information Source : LIC India website and crisil report.

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