LIC IPO

LIC IPO

Here we are Discussing about the LIC IPO Open and close Date, Price band at which LIC IPO will come and Its detailed Review.

Life insurance corporation is the oldest & major insurer corporation of India, having the Market valuation of approximately 10 Lakhs Crore.

LIC IPO will be the largest IPO of the Indian history, as the Government Will sell its 10% – 25% stake of the PSU in the free-floating market.

The main objective of disinvestment in LIC & to bring LIC IPO is to suck the money from the market and use it for the development purposes and infuse some money in the banking industry to make it much stable, that is the backbone of our economy.

After sucking so much money from the free floating market, one can see the money crunch in the market for few days.

LIC IPO was to Open in Late 2020, but due to COVID-19 Pandemic, it is halted for 2021, So that economy & market becomes stable.

LIC is the largest market player in Insurance. Due to 100% of government-owned PSU, LIC has built the peoples trust, and due to its large number of agents, the reach of LIC is the largest in the country, than any other insurance company in India.

Table Of Contents

LIC IPO Date

The official Date of Launching LIC IPO in the market is till not confirmed but,

LIC IPO is expected to come Next year (2022) In Financial year 2022-2023, in Q2 – Q3 That if from April 2022 – June 2022.

IPO will be open for 3 days, and allotment finalisation after 5 days of closing the IPO subscription.

Open Date[●]
Close Date[●]
Minimum Quantity (Market Lot)[●]
Share Price[●]
Listing Date[●]

LIC IPO Details

Open Date2022
Close Date2022
Allotment Date2022
Listing Date2022
Minimum Quantity (Market Lot)[●] Shares
Share Price₹[●] – ₹[●] Per Equity Share
Face Value₹[●] Per Equity Share
One Market Lot Price₹[●]
DRHPClick To View
RHPClick To View

LIC IPO Price Band (Share Price)

The Price Band of LIC IPO is not Yet officially Launched. But,

LIC price band of IPO is expected to be between 14,000 – 15,000.

Due to this price range, everyone will be able to buy minimum quantity (market Lot).

After the launch of IPO, Government of India will have to sell 15% more stakes of LIC in the interval of upcoming 3 years, as according to the rules of SEBI, If the Government Holds to sell only 10 % of its stake In LIC.

LIC Balancesheet (Investment)

Financial YearProfitInvestment (Debt + Equity)Debt InvestmentEquity Investment
2020 – 212.60 L Crore2.10 L Crore90 k Crore
2019 – 2018 k Crore4.35 L Crore3.75 L Crore68 k Crore
2018 – 1923 k Crore3.18 L Crore2.5 L Crore60 k Crore
2017 – 1825 k Crore3.90 L Crore3 L Crore50 k Crore

LIC Major profit comes from the Insurance Industry and Profit From investment comes at the second place.

LIC Peers & Competitors

NameP/EDiv Yld (%)Net Profit Q3 ((In ₹ Cr.)Quarterly Profit (%)Sales  (In ₹ Cr.)Sales Growth (Var %)ROCE %
HDFC Life Insurance88.260327.836.116518.1888.9920.15
SBI Life Insurance47.270299.73130.8518640.1144.7521.92
ICICI Pru Life54.780.2302.460.2116691.2104.9613.93
ICICI Lombard40.640.28415.7435.022994.74.9328.7
General Insurance0-497.02-358.7714835.48-18.73-1.39
New India Assurance11.210317.4313.756923.24-0.172.12

LIC IPO GMP (Grey Market Premium)

View LIC IPO Detailed GMP Here. (GMP will start After IPO open Date will be announced).

LIC IPO Review

Advantages

1. Market sentiment is very bullish related to LIC IPO, as the subscription will go high, the allotment of LIC IPO will become difficult & due to its high demand market will move its share price in upside trend.

2. Insurance industry has not gone achieved its full potential, as in foreign countries, where everyone is aware of insurance schemes & instruments, so LIC has many growth advantages in expanding its businesses across the country at PAN INDIA level.

3. LIC has the highest reach inside the country at PAN level, than any other insurer, and advantage of having a high number of agents helps the LIC a lot in selling its insurance products, Having 8 zonal offices, 100+ divisional offices, 2000+ branch offices & 12 Lakh+ agents that have reached at every part of the country.1.1 lakh+ total employees

5. LIC has also the highest presence outside the country at global presence in 14 other countries, Fiji, Mauritius, England, Bahrain, Nepal, Sri Lanka, Singapore and Bangladesh, among others.

6. market share in Insurance is highest of LIC

  • First-time premium holder share – 66%
  • Total no. of policies – 72%
  • the largest number of the policyholder is of LIC that 290+ million.

7. 31 Lakh crore Rs of AUM (asset under management is holded by LIC

  • 20x times growth in 1980 – 2000
  • 20x times growth in 2000 – 2020

8. LIC is the only PSU that fund Government and having in large profit through insurance & investment in Debt and Equity instrument.

  • 70 % in Government securities
  • 15% in Equity
  • 10% in Bonds
  • 5% in other instruments

DISADVANTAGES

1. Majorly 15% of funds are invested into Equity, which is Low investment in Equities that will lead to low investment returns as according to the shareholder. The highest growth is seen in equity funds. thus, another turn of this is that it gives stability to the LIC.

2. Having the tag of PSU on LIC that show Low growth rate as compared to private insurance firms.

3. Many bad investments have done by LIC (like DHFL & YES BANK) which has lead to Increase in percentage of NPA.

4. LIC Has the highest number of Claims settlement ratio in the insurance sector, that harms the shareholder’s sentiments of paying more to its policyholder.

5. LIC portfolio in debt is a major risking factor.

Investment Done by LIC In Equity market

RELIANCE6.00 %
HDFC BANK3.50 %
INFOSYS7.00 %
HDFC5.50 %
ICICI BANK10.00 %
TCS4.15 %
KOTAK BANK2.35 %
HINDUSTAN UNILEVER3.70 %
ITC16.15 %
BHARTI AIRTEL3.90 %

LIC IPO Latest News

In budget 2020, Nirmala Sitharaman announced that the Government is going to disinvest in LIC, Which would help to gather about 1 lakh crore RS.

Lic IPO FAQ

What is Lic IPO ?

Lic IPO is a main-board IPO of [●] equity shares of the face value of ₹ 10 aggregating up to ₹ [●]Crores. The issue price is ₹ [●] to ₹ [●] per equity share.

The Lic IPO minimum order quantity is [●] Shares. The IPO opens on 2022, and closes on 2022.

Lic IPO will be subscribed with a premium of ₹[●] per equity share & the issue price is [●] times of the face value. The shares are proposed to be listed on BSE, NSE.

What is Lic IPO opening and closing date ?

Lic IPO open date is 2022 and the close date is 2022.

What is the price of Lic IPO ?

Price of Lic IPO is ₹ [●] ₹ Per Equity Share.
Price of one lot of Lic IPO is ₹ [●].
Investors can buy a minimum lot of [●]Shares with a Price Band of ₹ [●] Per Equity Share which will cost ₹[●] for one lot.

What is Lic IPO GMP price today ?

Lic IPO GMP Price Today is ₹ N/A Per Equity share.

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