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About LIC of India
LIC is owned by the
Government of India. It is the only life insurance company with an extensive
presence in rural and urban areas. It operates through 8 zonal and 113
divisional offices.
LIC IPO Objectives
- The government
aims to get 21,000 crores by offloading 3.5% of its shares.
- Enhance the brand image & provide a public market for the equity shares
in India.
Opening Date : May 4, 2022
Closing Date : May 9, 2022
Price Band: ₹902 - ₹949 per equity share
Issue Size: 21,000 Cr
Face Value: ₹10 per equity share
Market Lot: 15 Shares
Listing at NSE, BSE
LIC IPO Important
Dates
|
IPO Open Date |
May
4, 2022 |
|
IPO Close Date |
May
9, 2022 |
|
Allotment Date |
May
12, 2022 |
|
Initiation Of Refunds |
May
13, 2022 |
|
Credit Of Shares To |
May
16, 2022 |
|
IPO Listing Date |
May
17, 2022 |
|
UPI Mandate Expiry Date |
May
10, 2022 |
LIC IPO - Perks for Policyholders
LIC has reserved 10% of IPO shares for
policyholders. Also, an Additional discount of Rs 60 per share for
policyholders.
LIC policyholders can apply under this quota only
if:
- The policy is issued on/before 13 Feb
2022
- The PAN is linked to LIC Policy
Why should you invest in LIC IPO?
Below are your top 2 reasons:
• LIC has 65 years of lineage and a network of 13
lakh agents.
• Has a reliable risk management framework.
How to apply for LIC IPO?
Here is your quick checklist for
LIC IPO:
UPI
- Link
your bank account to a UPI ID.
- Register
your UPI id with your Demat account.
- Subscribe
for LIC IPO and approve the payment on your UPI ID.
Demat
Account
- If you
are an existing Angel One user,
- If
you’re a new investor open AngelOne account using below linkhttps://angel-one.onelink.me/Wjgr/tb4j8p4q, and
begin your investment journey.
LIC IPO - Noteworthy Highlights
LIC
is the only government-owned insurance company in the country. The entity was
formed by merging around 245 insurance companies. Other highlights include :
•
Besides life insurance, the company also extends mutual funds, pension funds,
housing finance, and card services.
•
As of 31 March 2021, there were around 13.53 lakhs individual LIC agents.
•
It has more than 1.14 lakh employees. LIC employees are also offered a discount
of Rs.45/- per share.
LIC IPO - SWOT Analysis
Strengths
- Multiple
offerings: LIC offers various insurance plans.
The most popular products include life insurance policies, money back
plans, endowment plans, insurance riders, and term insurance plans.
- Diversified
business portfolio: LIC boasts a diversified business
portfolio. Some of its most noteworthy lines of business include LIC
Housing Finance, LIC Pension Fund, LIC Card Services, and LIC Mutual Fund.
- Sizeable
fund base: The company operates with a fund
base of nearly Rs. 289.57 crores. Additionally, India's largest investor
has a robust financial standing with sufficient flexibility to grow and
expand its portfolio further.
Weaknesses
- Restrictions
on PSU: LIC is subject to various
restrictions since it's a PSU. Such restrictions could emerge as a
roadblock to the operational and expansion goals of this company.
- Large
workforce: LIC has more than 1 lakh employees.
Maintaining such a large workforce can become challenging, especially
during a financial crisis.
Opportunities
- Online
services: The online offerings of LIC cater
to a large pool of tech-savvy customers. LIC could tap into the urban
market like never before by leveraging the IPO proceeds to establish an
extensive digital footprint.
- Increase
in disposable income: A surge in individuals' disposable
income and greater awareness about the importance of being insured could
continue to favour LIC's growth.
Threats
- Competition: Several
private insurance policy companies and NBFCs are now active in the market.
The unique offerings and more customised services of these competitors
could pose a threat to LIC.
- Changes
in the fiscal policy: Changes in RBI's monetary and
fiscal policies can prompt LIC to modify its policies accordingly. Such
changes can be counterintuitive to the company's earnings or scope of
operations.
