Life Insurance Corporation, or LIC, has etched its position as the biggest life insurer in India. LIC is also among the most well-recognised and trusted brands in the country. Not surprisingly, since the insurer announced its plans to launch an initial public offering (IPO), there has been a lot of interest and curiosity around the LIC IPO. It is in fact one of the most awaited IPOs of the year, and investors want to know all about the LIC IPO – right from the LIC IPO launch date and issue price to how to apply for the LIC IPO.
So without further ado, let’s take a look at the important things that an investor must know, ahead of the LIC IPO.
LIC IPO quick highlights:
This IPO is entirely an Offer for Sale (OFS) by the promoter i.e. the Government of India. Through this IPO, the Indian government will be selling a 3.5% stake, or about 22.1 crore shares.
Of the total issue size, about 10% is reserved for LIC Policyholders. Eligible policyholders may also get a discount on the offer price.
Courtesy its strong agency network, LIC enjoys a 66% market share in New Business Premium in FY21. New Business Premium refers to the premium earned from the total number of policies sold in a year by the company. To put it in perspective, the next biggest player’s market share is 7%. This reflects the massive size and leading position enjoyed by LIC in comparison to other life insurers.
As on 31 December 2021, LIC had assets under management (AUM) worth ₹40 lakh crore. It might be noted that LIC’s investments in listed equities constitute around 4% of the total market cap of the NSE.
To manage this mega IPO, the government has appointed 10 merchant bankers. These include Goldman Sachs (India) Securities, Citigroup Global Markets India, BofA Securities, JP Morgan India, among others.
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For company information, news, updates and application process related to the LIC IPO, click here: https://licipo.upstox.com/
For date, price and timeline details on the LIC IPO, click here: https://upstox.com/ipo-initial-public-offering/lic-life-insurance-corporation-of-india/42cb1060d6504ae9930f8c595b35a019
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