IPO

                    Initial Public Offer - (IPO)   

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LIC IPO - Individual Investor

LICI

Pre-apply

₹902-949

per share

Bidding Dates

4-9 May

Min. Investment

₹13,530.00

Lot Size

15 shares

Issue Size

₹20557 Cr

IPO Timeline

Bidding starts

04 May ‘22

Bidding ends

09 May ‘22

Allotment finalisation*

12 May ‘22

Refund initiation*

13 May ‘22

Demat transfer

16 May ‘22

Listing

17 May ‘22

* Refund is a 7-10 days process. If you don’t get refund then please contact your bank.

LIC IPO - Individual Investor is available for Pre applying right now.Learn more about pre-applying

LIC IPO details

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   FY20 FY21 9MFY22 Total Assets 34,14,174 crores 3,746,404 crores 40,90,786 crores Net Premium 382,475 crores 405,398 crores 2,85,341 crores Net Profit 2,710 crores 2,974 crores 1,715 crores

 

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Strengths

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Has omni-channel presence through agents (13 lakh+), bank partners, brokers and digital channel.

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Ranked tenth globally in terms of total assets, as of 31 March 2021.

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New business grew at a CAGR of 13.5% between FY19 and FY21.

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Trusted brand with a diverse product portfolio.

 

Risks

 

Death claims increased to ₹2,392.69 crore for FY21 from ₹1,752 crore in FY20.

 

The market share dropped to 63.6% in the first half of FY22 from 66.4% in FY19.

 

None of its products are sold on third-party websites.

 

The lockdown affected its partners ability to sell products.

 

Threats

 

Government intervention in key business areas could affect decision making and utilisation of resources.

 

Agents are independent of LIC's control and can easily missell the products.

 

Faces intense competition from private life insurers like HDFC Life and ICICI Pru Life.

 

The government raised the limit of foreign investment in Indian insurance companies, which can impact LIC's market share.

 

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. Login to Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ Look for LIC IPO and click on ‘LIC - Individual Investor’ Now fill in all the required information Enter the bid price Confirm and click on ‘Apply’ Accept the mandate on your UPI app

 

Pre-apply for LIC IPO You can pre-apply for the LIC IPO on Upstox from April 29, 2022. Upstox has introduced this new feature exclusively for its customers. So what exactly is the pre-apply feature? Well, pre-apply is a tool by which you can apply for the IPO even before it has been launched. This way, you won’t miss out on applying for the IPO. However, the allotment is not guaranteed and will depend on the demand for the IPO. Once the IPO goes live, you will receive a mandate on your UPI app. You must accept it to complete your LIC IPO application. So how do you pre-apply for the LIC IPO? Well, it’s simple! Open your WhatsApp and follow the steps below. Send ‘Hi’ on +919321261098 and click on ‘IPO’ Select ‘Yes Proceed’ to confirm your number or if you want to change your number click on ‘No, change number’ Now, enter the six digits OTP, which you have received Out of the list of IPOs, select LIC IPO and click on ‘Apply Now’ Enter the bid price, which should be within the range and select the number of lots Ensure the details are correct and then select ‘Proceed’ Next, you will be asked to enter your UPI ID After entering it, select ‘Accept and Proceed’ That’s all. You can revisit the chat and check the application status anytime.

 

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. 10% reserved allocation for LIC policyholders Special discount of ₹60 per share Proportionate allotment if the issue is oversubscribed Policyholders can also apply in the retail/individual category 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?

 

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.

 

LIC IPO updates and news LIC IPO anchor book witnesses strong demand. Large investors bid twice the size of the anchor book Five domestic mutual funds commit in the range of ₹150-₹1,000 crore for the LIC IPO Norway, Singapore and Abu Dhabi sovereign wealth funds to be anchor investors for LIC IPO, according to reports More than 6 crore policyholders have shown interest in LIC IPO The management of LIC reportedly said that it is a good time for an IPO of this size

 

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.    Stocks  Value (₹ crore) Stake (%) Reliance Industries (RIL) 94,927 6% Tata Consultancy Services (TCS) 47,978 4% Imperial Tabacco Company of India (ITC) 43,117 16% Infosys (INFY) 40,917 6% State Bank of India (SBI) 35,527 8% 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.