LIC IPO is set to open on 4 May 2022, with an issue size of ₹21,008.48 cr for a 3.5% stake. The much-anticipated mega initial public offering of Life Insurance Corp. (LIC) has been announced. The issue will open on May 4th IPO bidding will continue until May 9th. The price band of LIC IPO is Rs. 902 – Rs. 949 per equity share, with a ₹ 60 discount to policyholders and a ₹ 45 discount for retail investors and employees. The IPO issue size is Rs 21,008.48 crore, around 22.14 crore shares.
The Initial Public Offering (IPO) Of LIC opens on May 2 for anchor investors, and from May 4 to May 9 for retail and HNI quota. As per the report government will sell a 3.5% stake in the state-owned Life Insurance Corporation (LIC). As per SEBI norms, companies with a valuation of over ₹1 lakh crore have to sell a 5% stake in IPO.
LIC is the largest insurance provider company in India. It has a market share of above 66% in new business premium. The business uses participating insurance coverage products and non-participating products like unit-linked insurance policy items (ULIPS), conserving insurance coverage products, term insurance policy items, health insurance, as well as annuity & pension plan products.
It operates globally in Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, UAE, Bahrain, Qatar, Kuwait, as well as the UK. Since 30 Sep 2021, it has had a total AUM of Rs. 39 lakh crore. LIC operates via 2048 branches, 113 local workplaces, and 1,554 Satellite Workplaces.
Paytm’s IPO in 2021, which raised Rs 18,300 crore, was the largest ever in India, followed by Coal India’s IPO in 2010, which raised nearly Rs 15,500 crore, and Reliance Power’s IPO in 2008, which raised Rs 11,700 crore.
Also Read: Delhivery IPO Details, Price Band, Allotment, GMP, Review, Subscription Data
Key Positive Factors For LIC IPO
- LIC has more than 13.5 lakh agents who bring most of LIC revenue through various insurance products.
- Currently, LIC manages a net asset of more than Rs. 39 lakh crores which are more money than the entire Indian mutual fund industry combined.
- Over the years due to state operations, LIC has gained huge trust among Indians for both insurance and investments.
- LIC is the fifth largest insurance provider on a global level in terms of Gross Written Premium (GWP)
- Has many types of insurance and investment product for every type of user.
- It has a large agent network, a proven track record, and a 65-year history.
Key Challenges For Life Insurance Corporation of India
- LIC is losing its competition to private insurance players such as HDFC Life, ICICI Prudential, Navi Insurance Etc.
- Government intervention in key business areas could affect decision-making and utilization of resources.
- The majority of its revenue is burned by its agents who take a huge commission percentage from the premium collected from the insurance.
- Having not properly utilized the purchase of insurance through the internet, LIC has more than its 90% policy availability through offline agents. Most private players are winning in terms of online selling of insurance.
- Because LIC’s business model is unlike any other, valuing the company is extremely difficult. LIC collects money upfront and then promises to compensate policyholders later, which is not proper revenue.
LIC IPO Valuation:
According to actuarial firm Milliman, the company’s valuation is expected to be around Rs 5.4 lakh crore. The government’s intention to sell 3.5 percent of its stake for Rs 21,008.48 crore, however, puts the valuation at around Rs 6 lakh crore.
LIC IPO Timetable Information:
The LIC IPO date starts from May 4, 2022, to May 9, 2022. The bidding time is 10.00 A.M. to 5.00 P.M. Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day
| 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 |
Minumim & Maximum Lot Size Of LIC IPO
The minimum lot size of LIC IPO is 1 Lot (15 shares) and the Maximum lot size is 14 Lot (210 shares). Users can apply for a minimum of 1 lot and a maximum of 14 lots.
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum Lot Size | 1 | 15 | ₹14,235 |
| Maximum Lot Size | 14 | 210 | ₹199,290 |
LIC IPO Effective Price After Discount:
LIC IPO Effective Price by Category
| Investor Category | Effective Price |
|---|---|
| QIBs | Rs 949 |
| HNIs | Rs 949 |
| Retail | Rs 904 (Rs. 45 discount) |
| Policyholders | Rs 889 (Rs. 60 discount) |
LIC IPO Details:
| IPO Opening Date | May 4, 2022 |
| IPO Closing Date | May 9, 2022 |
| Stock Ticker Symbol | LICI |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹5 per equity share |
| IPO Price | Rs.902 – Rs.949 per equity share |
| Market Lot / Min Order Quantity | 15 Shares |
| Listing Platform | BSE, NSE |
| Issue Size | 221,374,920 Eq Shares of Face Value ₹10 (aggregating up to ₹21,008.48 Cr) |
| Offer for Sale | 221,374,920 Eq Shares of ₹10 (aggregating up to ₹21,008.48 Cr) |
| Fresh Issue | 0 Cr |
| Employee Discount | Rs. 45 per equity share |
| Retail Investor Discount | Rs. 45 per equity share |
| QIB Shares Offered | 50% of the net offer |
| Retail Shares Offered | 35% of the net offer |
| NII (HNI) Shares Offered | 15% of the net offer |
| DRHP Link | Click Here |
Summary of financial Information For LIC IPO
For the year/period ended (₹ in Millions)
| Particulars | 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 |
|---|---|---|---|---|
| Total Assets | 40,434,596.70 | 37,464,044.68 | 34,141,745.74 | 33,663,346.17 |
| Total Revenue | 15,197.24 | 29,855.71 | 27,309.56 | 26,449.96 |
| Profit After Tax | 15,040.13 | 29,741.39 | 27,104.78 | 26,273.78 |
Consolidated Financial Summary of LIC
| (₹ Amount in Lakhs) | FY19 | FY20 | FY21 |
|---|---|---|---|
| Net Premium Income | 33718539.65 | 37906255.71 | 40284434.43 |
| Total Revenue | 56078439.38 | 61588293.71 | 68220499.40 |
| PAT (Profit After Tax) | 268849.66 | 271270.80 | 290056.68 |
| Persistency Ratio (13th Month) | 66 % | 61 % | 67 % |
| Conservation Ratio | 92.19 % | 88.79 % | 84.48 % |
| Solvency Ratio | 1.60 | 1.55 | 1.76 |
LIC Profit & Loss:
| PARTICULARS | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 |
| Net Sales | 0 | 0 | 0 | 0 | 0 |
| Total Expenditure | 0 | 0 | 0 | 0 | 0 |
| Operating Profit | 0 | 0 | 0 | 0 | 0 |
| Other Income | 0 | 0 | 0 | 0 | 0 |
| Interest | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 0 | 0 | 0 | 0 | 0 |
| Exceptional Items | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 2,248.36 | 2,459.41 | 2,703.48 | 2,720.75 | 2,906.77 |
| Provision for Tax | 16.62 | 13.01 | 14.99 | 8.04 | 6.21 |
| Net Profit | 0 | 0 | 0 | 0 | 0 |
| Adjusted EPS (Rs.) | 0.35 | 0.39 | 0.43 | 0.43 | 0.46 |
LIC Cash Flows (All Figures are in Crores.)
| PARTICULARS | MAR 2020 | MAR 2021 |
|---|---|---|
| Profit from operations | 0 | 0 |
| Adjustment | 86,826.68 | 72,219.07 |
| Tax Paid | -11,337.08 | -11,791.58 |
| Operating Cash Flow | 74,768.69 | 55,723.07 |
| Investing Cash Flow | -85,722.03 | -54,012.82 |
| Financing Cash Flow | -2,608.25 | 0 |
| Net Cash Flow | -13,561.59 | 1,710.25 |
How To Apply For LIC IPO:
You Can Apply For the IPO Of LIC through
- Your Stock Brokers Such as Zerodha, UpStox, 5Paisa, Groww, etc
- Through 3rd Party IPO Applications such as SBI Bank, Axis Bank, Bank of Baroda (BoB), RBL Bank, IndusInd Bank, etc.
- To apply in the LIC policy Holder Category, Make Sure you hold any LIC policy issued before 13 Feb ’22 and linked your PAN with your LIC Policy.
LIC IPO Allotment Status
Allotment status for LIC IPO is not available yet. The allotment will happen on May 4, 2022. Users can check the status of allotment by following the below process.
Method 1:
- Go to the Kfintech Registrar website (Link 1, Link2, Link3, Link4)
- Select the company as Life Insurance Corporation of India
- Next you can either enter your PAN Number / IPO Application No. / DP/Client ID / Account No / IFSC
- Click on submit, You will get the information about your allotment
Method 2:
- Click Here to go to the BSE website
- Select equity as an option
- The next step is to select the Issue Name as Life Insurance Corporation of India
- The next step is to either enter your IPO application number or your PAN number.
- Complete the captcha and click on submit
The below table has the consolidated data for LIC GMP per day basis. The grey market premium, or GMP, is data calculated based on the demand for a company that is planning an initial public offering. After the IPO date and price band announcements, the grey market begins unofficially in the unregulated market.
The current GMP of LIC IPO is Rs 30 As Of 10-May-2022
| Date | LIC GMP Today |
| 10 May | Rs. 30 |
| 9 May | Rs. 40 |
| 8 May | Rs. 60 |
| 7 May | Rs. 40 |
| 6 May | Rs. 50 |
| 5 May | Rs. 65 |
| 4 May | Rs. 52 |
| 3 May | Rs. 62 |
| 2 May | Rs. 55 |
| 30 April | Rs. 85 |
| 29 April | Rs. 70 |
| 28 April | Rs. 63 |
| 27 April | Rs. 28 |
| 26 April | NA |
LIC IPO Subscription Data
| Date | Day | QIB | NII | Retail | Employees | Policy Holders | Total Subscription |
| 04 May 2022 | 1 | 0.33 | 0.27 | 0.60 | 1.17 | 1.99 | 0.67 |
| 05 May 2022 | 2 | 0.4 | 0.47 | 0.93 | 2.22 | 3.11 | 1.03 |
| 06 May 2022 | 3 | 0.55 | 0.68 | 1.19 | 2.94 | 3.87 | 1.32 |
| 07 May 2022 | 4 | 0.67 | 1.08 | 1.46 | 3.54 | 4.67 | 1.66 |
| 08 May 2022 | 5 | 0.67 | 1.24 | 1.59 | 3.79 | 5.04 | 1.79 |
| 09 May 2022 | 6 | 2.83 | 2.91 | 1.99 | 4.4 | 6.12 | 2.95 |
DAY 1 Of LIC IPO
- Qualified Institutional Buyers (QIBs) subscribed 0.33 times
- Non-Institutional Investors subscribed 0.27 times
- Retail Individual Investors (RIIs) subscribed 0.60 times
- Employees subscribed 1.17 times
- Policyholders subscribed 1.99 times
- Total subscribed 0.67 times
DAY 2 Of LIC IPO
- Qualified Institutional Buyers (QIBs) subscribed 0.40 times
- Non-Institutional Investors subscribed 0.47 times
- Retail Individual Investors (RIIs) subscribed 0.93 times
- Employees subscribed 2.22 times
- Policyholders subscribed 3.11 times
- Total subscribed 1.03 times
Day 3 Of LIC IPO Subscription Data (06 May 2022)
- Qualified Institutional Buyers (QIBs) subscribed 0.55 times
- Non-Institutional Investors subscribed 0.68 times
- Retail Individual Investors (RIIs) subscribed 1.19 times
- Employees subscribed 2.94 times
- Policyholders subscribed 3.87 times
- Total subscribed 1.32 times
Day 4 Of LIC IPO Subscription Data (07 May 2022)
- Qualified Institutional Buyers (QIBs) subscribed 0.67 times
- Non-Institutional Investors subscribed 1.08 times
- Retail Individual Investors (RIIs) subscribed 1.46 times
- Employees subscribed 3.54 times
- Policyholders subscribed 4.67 times
- Total subscribed 1.66 times
Day 5 Of LIC IPO Subscription Data (08 May 2022)
- Qualified Institutional Buyers (QIBs) subscribed 0.67 times
- Non-Institutional Investors subscribed 1.24 times
- Retail Individual Investors (RIIs) subscribed 1.59 times
- Employees subscribed 3.79 times
- Policyholders subscribed 5.04 times
- Total subscribed 1.79 times
Day 5 Of LIC IPO Subscription Data (09 May 2022)
- Qualified Institutional Buyers (QIBs) subscribed 2.83 times
- Non-Institutional Investors subscribed 2.91 times
- Retail Individual Investors (RIIs) subscribed 1.99 times
- Employees subscribed 4.4 times
- Policyholders subscribed 6.12 times
- Total subscribed 2.95 times
Consolidated Bid Details (Updated as on 09-May-2022 19:00:00)
| SR. NO. | CATEGORY | NO OF SHARES OFFERED/ RESERVED | NO OF SHARES BID FOR | NO OF TIMES OF TOTAL MEANT FOR THE CATEGORY |
|---|---|---|---|---|
| 1 | Qualified Institutional Buyers(QIBs) | 3,95,31,236 | 11,20,68,960 | 2.83 |
| 1(a) | Foreign Institutional Investors(FIIs) | – | 2,41,55,730 | – |
| 1(b) | Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) | – | 4,93,81,500 | – |
| 1(c) | Mutual funds | – | 88,53,450 | – |
| 1(d) | Others | – | 2,96,78,280 | – |
| 2 | Non Institutional Investors | 2,96,48,427 | 8,61,93,060 | 2.91 |
| 2(a) | Corporates | – | 3,20,70,375 | – |
| 2(b) | Individuals(Other than RIIs) | – | 5,08,74,210 | – |
| 2(c) | others | – | 32,48,475 | – |
| 3 | Retail Individual Investors(RIIs) | 6,91,79,663 | 13,77,84,060 | 1.99 |
| 3(a) | Cut Off | – | 11,42,94,555 | – |
| 3(b) | Price bids | – | 2,34,89,505 | – |
| 4 | Employees | 15,81,249 | 69,49,965 | 4.40 |
| 4(a) | Cut Off | – | 47,93,730 | – |
| 4(b) | Price Bids | – | 21,56,235 | – |
| 5 | Policyholders | 2,21,37,492 | 13,53,70,965 | 6.12 |
| 5(a) | Cut Off | – | 11,17,59,045 | – |
| 5(b) | Price Bids | – | 2,36,11,920 | – |
| – | Total | 16,20,78,067 | 47,83,67,010 | 2.95 |
LIC India Company Promoter Profile
The President of India, acting through the Ministry of Finance, Government of India is the company promoter.
LIC IPO Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | NA |
LIC IPO Valuation
| PARTICULARS | VALUE |
|---|---|
| Upper Price Band | Rs 949 |
| Existing Shares (Qty) | 632.4 Cr |
| Market Cap | 600147.6 Cr |
| EPS (FY21) | Rs 4.70 |
| PE Ratio | 201.9 |
| Industry PE (Insurance Sector) | 79.7 |
LIC IPO Registrar Information
KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: [email protected]
Website: https://karisma.kfintech.com/
Company Contact Information
Life Insurance Corporation Of India
Address: Central Office ‘Yogakshema’ Jeevan Bima Marg Nariman Point Mumbai 400021
email:
Phone: +91 22 6659 8732
Email: [email protected]
Website: https://licindia.in/
Also Read: Campus Activewear IPO Date, Price, Allotment, GMP, Review, Details
Lead Managers For LIC IPO
- Kotak Mahindra Capital
- Goldman Sachs (India) Securities
- JP Morgan India Private Ltd
- ICICI Securities
- JM Financial
- Citigroup Global Markets India Private Ltd
- Nomura Financial Advisory and Securities (India) Private Ltd
- Axis Capital
- BofA Securities
- SBI Capital Market Ltd
FAQ ON LIC IPO
What is the LIC IPO Date?
IPO For LIC Will opens from May 4, 2022, to May 9, 2022.
What is LIC IPO Price Band?
The Price Band Of LIC IPO Will Be Rs.902 – Rs.949 per equity share.
What is the discount for LIC Policy Holder?
Existing LIC Policy Holder Will Get Rs. 60 as a discount.
What is the Valuation Of LIC IPO?
As per the IPO price band for 3.5% stakes for Rs 21,008.48 crore, the valuation comes to around Rs 6 lakh crore.
What is the issue size of LIC IPO?
The issue size of LIC IPO is 221,374,920 Eq Shares For ₹21,008.48 Crore.
How can I apply for LIC IPO?
You can apply For LIC IPO Through Your Broker Or Through ASBA(Application Supported by Blocked Amount)
What is the allotment date of LIC IPO?
LIC IPO Allotment Date of LIC IPO is May 12, 2022.
What Is The Listing Date Of LIC IPO?
The Listing Date Of LIC IPO is May 17, 2022.
What is The Minimum Lot Size For LIC IPO?
The Minimum Lot Size For LIC IPO 1 Lot i.e. 15 shares.
What is the GMP Of LIC IPO?
The Current GMP (Grey Market Premium) of LIC IPO is Rs. 30.
Disclaimer:
We don’t participate in grey market trading or facilitate the purchase or sale of initial public offering (IPO) forms. We do not support such activities in any way. We are adamantly opposed to such activities and never advise anyone to trade in the grey market.
3 Comments
Good coverage on LIC IPO. Can i link my pan with policy now to become eligible for policy holder category??
To become eligible for policyholder discount, Make sure you have linked your PAN number with your LIC policy before February 28, 2022
I have applied in Policy holder category. I hope to get the allotment