LIC IPO Details
|IPO Opening Date||May 4, 2022|
|IPO Closing Date||May 9, 2022|
|Issue Type||Book Built Issue IPO|
|Face Value||₹10 per equity share|
|IPO Price||₹902 to ₹949 per equity share|
|Market Lot||15 Shares|
|Min Order Quantity||15 Shares|
|Listing At||BSE, NSE|
|Issue Size||221,374,920 Eq Shares of ₹10
(aggregating up to ₹21,008.48 Cr)
|Offer for Sale||221,374,920 Eq Shares of ₹10
(aggregating up to ₹[.] Cr)
|Retail Discount||Rs 45 per share|
|Employee Discount||Rs 45 per share|
|QIB Shares Offered||Not more than 50% of the Net Offer|
|Retail Shares Offered||Not less than 35% of the Net Offe|
|NII (HNI) Shares Offered||Not less than 15% of the Net Offe|
|Particulars||For the year/period ended (₹ in Millions)|
|Profit After Tax||15,040.13||29,741.39||27,104.78||26,273.78|
There is something very unknown & unique to you about the Life Insurance Corporation of India, so today in this article we will discuss some Secrets Of LIC.
LIC has made a big move in the market for the IPO after the financial budget of 2022. According to sources, the LIC board had a meeting on Friday regarding the IPO. You should know some Secrets Of LIC before the IPO hits the market.
Top Secrets Of LIC
Life Insurance Corporation of India is a government-owned most enormous insurance corporation with 290 million policyholders. Let us dig into the secrets you never know about LIC India.
- LIC is the only player to make it to the global leaderboard of top 5 in insurance premium and top 10 in total assets. It has a 64.1% market share in terms of premium and 66.2% market share in terms of new business premium.
- These government-owned insurance corporations have a massive agent network of 1.35 million as of March 2021, i.e., 55% of the total agent network of our entire country.
- LIC is not just an insurance company. It’s an insurance firm that owns stocks worth 9.5lakh Cr. From 20 years back, LIC had a 100% market share in the life insurance biz, but the share has steadily dropped and now stands at 64.1% post-privatization.
- Every life insurance policy sold in India is 90% of LIC policies this is due to the government having given a guarantee to give the claim amount in case LIC defaults.
- LIC has also got a bad report in terms of retaining customers i.e 23% of Lic policyholders stop paying just after the 1st year while private insurance policyholders are doing much better in metric.
LIC's Current Holdings
Updating News For The Investors and Policyholders
Now let’s start some important discussions regarding the Life Insurance Corporation of India for the investors and policyholders.
India’s government-owned LIC submitted a draft red herring prospectus with the capital market regulator SEBI filed on 13th February. It was approved by the Insurance Regulatory and Development Authority(IRDAI) for its IPO proposal on 9th February.
The LIC IPO will be beneficial for investors because after the filing of DRHP the government is offering 31.62 crores of shares or 5% equity in the IPO as specified by the SEBI (Securities and Exchange Board of India).
According to sources, the government proposal of LIC IPO for the policyholders can go up to 10%. ‘The aggregate of reservations for the eligible policyholder(s) shall not exceed 10% of the offered size,’ the DRHP stated. 5% Employee quota. At least two working days prior, the quantum of potential discount will be specified closer to the bid opening date. Excess amounts are to be borne by the government. If any part of this maximum discount is not met, the excess will not be refunded. There will also be a set of minimum limits for the discount amount, i.e. no discount.
The President of India, acting through the Ministry of Finance, Government of India is the company promoter.