How to check LIC IPO allotment status?
Typically, it takes up to six days after the closing date of an IPO for the allotment process to complete.
However, when the allotment process is complete, you can check the status of your application by visiting the LIC IPO allotment status page. You will need your PAN card number, IPO application number, or the DP/Client ID to check the allotment status.
The LIC IPO, which is the country’s biggest-ever public offering so far, has become the most talked about topic since the company decided to go public. The Indian government, which is the 100% owner of the insurance giant, will offload 3.5% of its stake in the company through the IPO route.
Out of 22.1 crore shares being offered by the government, 35% are reserved for retail investors, 15% for non-institutional investors (NIIs) and 50% for Qualified Institutional Buyers (QIBs). To give you a clear picture of the LIC IPO, we have gathered all the relevant IPO details.
About the Life Insurance Corporation of India IPO
Life Insurance Corporation of India (LIC) was established in September 1956 by merging over 240 private insurers. LIC began its operations with a capital of ₹5 crore and is the largest life insurer since then.
As of December 31, 2021, LIC had 4,983 offices spread across all 36 states and union territories of India. This comprises one central office, eight zonal offices, 113 divisional offices and over 4,700 branch/satellite and mini offices.
In over 65 years, LIC has covered over 91% of the districts across India. It also has operations in Nepal, Bangladesh, Singapore, Sri Lanka, Bahrain, Fiji, England, Mauritius, Bangladesh and Singapore.
As of March 2021, the insurance giant had a market share of 64.1% in terms of gross written premium (GWP) and 81.1% in terms of the number of group policies issued. It has assets under management (AUM) to the tune of ₹40.1 lakh crore as of December 31, 2021. This is more than 3 times the AUM of all private insurance players and 1.2 times the AUM of the entire mutual fund industry in India. It also holds the largest agent network among life insurance entities, accounting for 55% of the total agent network in India.
LIC has become synonymous with the word insurance and with a variety of financial products under its umbrella, it is the go-to company for most people as far as financial planning is concerned.
LIC financial snapshot
Do you have an LIC Policy?
Having an LIC policy will be beneficial if you want to apply for the IPO as policyholders have a special reservation. For those who don’t have a policy, fret not. Even non-policyholders can apply and take advantage of the pre-apply feature provided by Upstox.
| LIC IPO for policyholders
If you are an LIC policyholder and have linked your PAN with the policy, you can apply in the policyholder category. Around 10% of the IPO has been reserved for policyholders. The chances of getting an LIC IPO allotment for policyholders are higher as they can also apply under the retail investor category.
LIC is also offering a special discount of ₹60 per share to its policyholders. Further, If this category is oversubscribed a proportionate allotment will be made.
| How to apply under the ‘policyholder’ category?
To apply for any IPO, you need a demat account. If you don’t have one, you can simply open it with a few steps. Click here to open a demat account with Upstox. If you have an Upstox account and want to apply for LIC under the policyholder category, all you need to do is follow these simple steps.
That's all you need to do to apply from the policyholder's category.
LIC IPO for individual category
If you are not an LIC policyholder or have not linked your PAN to the policy, you can still apply from the retail category.
Retail investors, whose bidding value is less than ₹2 lakh, will get a special discount of ₹45 per share. If the IPO is oversubscribed, then allotment will be made on a lucky-draw basis.
| How to apply under the ‘Individual Investor’ category?
To apply for LIC IPO under the all investors category, follow these simple steps.
LIC IPO open for subscription 24*7 on Upstox
The LIC IPO is open for subscription on Upstox round the clock. You can apply for the LIC IPO even after the IPO window shuts at 7pm. If you apply for the LIC IPO post 7 pm, then your application will be processed after 10:30 am the next day. Following that, you will receive the UPI mandate to block the funds for your LIC IPO application.
Apply for LIC IPO
As a retail investor, there are two ways to apply for the LIC IPO. Retail investors can apply via the policyholder’s category and general category.
To be eligible for applying via the policyholder’s category, you must have an LIC policy dated on or before February 13, 2022. Also, your PAN must be linked with the policy. Only if these conditions are fulfilled, you can apply via the policyholder category and enjoy the following benefits.
This brings us to the question of how to apply for LIC IPO? Well, in the above section, we looked at how to apply for this IPO in policyholder and all investors’ categories. However, you must note that a demat account is necessary to apply for any IPO. Click here to open a demat account and apply for LIC IPO.
Why apply on Upstox?
Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the LIC IPO on Upstox.
To apply for the LIC IPO, you need a demat account. A demat account can be opened with Upstox in no time. When you apply for an IPO using your Upstox account, the brokerage charges are zero.
Courtesy its world-class features with minimal charges, Upstox is one of the preferred trading apps, and can be a reliable choice when it comes to opening a demat account. Lakhs of Indians trust Upstox as it is a robust and reliable trading app that makes IPO applications easy. Upstox also offers seamless trading and investing experience.
How to open a demat account with Upstox to apply for LIC IPO?
To apply for the LIC IPO, it is necessary to open a demat account. You can open a demat account with Upstox either by downloading the app or by visiting the website.
To open a demat account with Upstox, you can visit this page and enter the basic details to begin the process of signing up. When directed, you need to upload scanned copies of your PAN, Aadhar card, cancelled cheque, and bank statement. You then need to complete e-verification with the help of an OTP sent to your registered mobile number. With this, your demat account will be created with Upstox. Easy, isn’t it?
LIC IPO updates and news
LIC’s top holdings
Along with being the largest life insurer in India, LIC is also a major investor in the domestic stock markets. In fact, it is the largest domestic institutional investor, accounting for 4% of the NSE’s total market capitalisation, as of September 2021.
The state-owned life insurer has ₹39 lakh crore assets under management (AUM). This makes it the country’s largest asset manager. To put things in perspective, LIC’s AUM is higher than the domestic mutual fund industry.
Let’s look at the top five equity holdings from LIC.
Note: Holding as on 31 December 2021 and value as on 28 February 2022
Competitive analysis: LIC vs peers
After the life insurance sector was opened up, many private players made their foray into the space. Currently, there are 23 life insurance companies in India. Despite the rising competition, LIC has managed to remain the largest player in the life insurance sector.
Let’s take a look at how India’s largest life insurer stacks up against peers.
LIC’s product portfolio is largely not linked to capital markets, making it less susceptible to market volatility. Also, the demand for non-linked products has been on the rise. This segment’s share in new business premium (NBP), which is the premium earned from new policies, increased to 89% in FY21 from 87% in FY16.
LIC has been able to keep its costs under control. Its operating expense to NBP ratio has remained in single digit. As LIC is a matured business, the operating expense ratio has been lower than most of the private players.
LIC holds a dominant position in the industry. It is currently India's largest life insurer in terms of the NBP. In the first nine months of FY22, LIC's NBP stood at ₹1.2 lakh crore, accounting for around 61% of the market share.