LIC IPO aka Life Insurance Corporation IPO will hit the market on 4 May 2022, as per the market news. The company to raise ₹21,008.48 crores (approx) via an initial public offer with a face value of ₹10 per equity share.
Life Insurance Corporation of India (LIC) is looking to sell the government’s 3% equity stake in the company in the upcoming IPO, the Draft Red Herring Prospectus (DRHP) filed with capital markets regulator SEBI showed today. The government will offload a total of 316 million equity shares to investors through the IPO, out of the 6.32 billion equity shares outstanding, the DRHP showed. LIC’s DRHP has set the wheels in motion for the country’s largest public issue. LIC IPO will be entirely an offer for sale (OFS) by the promoter — The government of India.
LIC’s IPO will have a 50% reservation for Qualified Institutional Buyers (QIB), not less than a 15% portion of the IPO will be reserved for Non-Institutional Investors (NII). This will leave 35% of the public issue reserved for retail investors. Policyholders of the state-run insurance company will also have a quota reserved in the LIC IPO along with employees of LIC.
Competitive strengths
- Leading insurance provider company in India with 66% market share.
- India's only state-owned insurance provider company.
- A range of life insurance products to meet the varied insurance needs of individuals.
- A strong network of 2048 branches, 8 zonal offices, and 13.53 lakh agents.
- Worldwide presence in countries i.e. Singapore, Fiji, Sri Lanka, Kenya, Nepal, Mauritius, Kuwait, Qatar, UK, UAE, etc.
Check out LIC IPO and GMP details:
LIC IPO Date & Price Band:
| IPO Opening Date | May 4, 2022 |
| IPO Closing Date | May 9, 2022 |
| LIC IPO Face Value | ₹10 per share |
| LIC IPO Price | ₹902 to ₹949 per share |
| LIC IPO Lot Size | 15 Shares |
| Issue Size | 221,374,920 shares of ₹10 (aggregating up to ₹21,008.48 Cr) |
| Offer for Sale | 221,374,920 shares of ₹10 (aggregating up to ₹21,008.48 Cr) |
| Retail Discount | Rs 45 per share |
| Employee Discount | Rs 45 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
LIC IPO Tentative Timetable
LIC IPO opens on May 4, 2022, and closes on May 9, 2022. The LIC IPO bid date is from May 4, 2022, 10.00 A.M. to May 9, 2022, 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| IPO Open Date | May 4, 2022 |
| IPO Close Date | May 9, 2022 |
| Basis of Allotment Date | May 12, 2022 |
| Initiation of Refunds | May 13, 2022 |
| Credit of Shares to Demat Account | May 16, 2022 |
| IPO Listing Date | May 17, 2022 |
LIC IPO Market Lot:
The LIC IPO lot size is 15 shares. A retail-individual investor can apply for up to 14 lots (210 shares or ₹199,290).
| Minimum Lot Size: | Minimum 15 Shares |
| Minimum Amount: | ₹14,235 |
| Maximum Lot Size: | Maximum 210 Shares |
| Maximum Amount: | ₹199,290 |
LIC IPO Details by Investor Category
| Category | Bidding at | Max Bid Amount | Basis of Allotment | Discount | Final Price |
|---|---|---|---|---|---|
| HNI | At price | Rs 9,067 Cr | Proportionate | No | Rs 949 |
| Retail | Cut-off | Not above Rs 2 lakhs | Draw of Lot | Rs 45 per share | Rs 904 |
| Employee | Cut-off | Not above Rs 2 lakhs | Proportionate | Rs 45 per share | Rs 904 |
| Policy Holders | Cut-off | Not above Rs 2 lakhs | Proportionate | Rs 60 per share | Rs 889 |
LIC Company Financial:
| Particulars | For the year/period ended (₹ in Millions) | |||
|---|---|---|---|---|
| 31-Dec-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |
| Total Assets | 40,907,867.78 | 37,464,044.68 | 34,141,745.74 | 33,663,346.17 |
| Profit After Tax | 17,153.12 | 29,741.39 | 27,104.78 | 26,273.78 |
LIC IPO Reviews / Ratings
- Updates Soon
Brokerage Firm IPO Reviews for LIC IPO
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- Motilal Oswal: Adding Soon
- Capital Market: Adding Soon
- Ventura Securities Limited: Adding Soon
- KR Choksey: Adding Soon
- AXIS Capital Ltd: Neutral
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How to apply for the LIC IPO? You can apply for LIC IPO via ASBA available in your bank account. Just go to the online bank login and apply via your bank account by selecting the LIC IPO in the Invest section. The other option is you can apply to LIC IPO via IPO forms download via NSE and BSE. Check out the LIC IPO forms - click NSE Forms & BSE Forms blank LIC IPO forms download, fill, and submit in your bank or with your broker.
LIC IPO Subscription Numbers (Day 1)
| Category | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | x | x | x |
| NII | x | x | x |
| RII | x | x | x |
| EMP | x | x | x |
| OTH | x | x | x |
| Total | x | x | x |
About LIC
Every day we wake up to the fact that more than 250 million lives are part of our family called LIC. We are humbled by the magnitude of the responsibility we carry and realize the lives that are associated with us are very valuable indeed.
Though this journey started over six decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 61 years has been a process called TRUST.
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era - past few centuries - its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of the first Indian life insurance company in the year 1870 and covered Indian lives at normal rates. Starting as an Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. United India in Madras, National Indian and National Insurance in Calcutta, and the Co-operative Assurance at Lahore were established in 1906. In 1907, the Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance, and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912, India had no legislation to regulate the insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, of 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw a lot of growth in the insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over the insurance business. The demand for nationalization of the life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially, the management of the companies were taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reaching all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices, and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy, it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the Corporate office. LIC’s Wide Area Network covers 113divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer online premium collection facilities in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune, and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner, and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of the life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.
» Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.
1912: The Indian Life Assurance Companies Act was enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act was enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
» Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act was amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. GIC incorporated as a company.
LIC Company Promoters:
- The President Of India
LIC IPO Registrar:
KFintech Private Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India - 500 032.
Phone: 04067162222, 04079611000
Email: lic.ipo@kfintech.com
Website: https://karisma.kfintech.com/
LIC IPO Lead Managers:
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- BofA Securities India Limited
- Citigroup Global Markets India Private Limited
- Goldman Sachs (India) Securities Private Limited
- ICICI Securities Limited
- JM Financial Limited
- J.P. Morgan India Private Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- SBI Capital Markets Limited
LIC Company Address:
Life Insurance Corporation
Yogakshema, Jeevan Bima Marg
Nariman Point, Mumbai 400 021,
Phone: +91 22 6659 8732
Email: Investors@licindia.com
Website: http://www.licindia.in/
LIC IPO FAQs
What is LIC IPO?
LIC IPO is a main-board IPO. They are going to raise ₹21,008 Crores via IPO. The issue is priced at ₹902 to ₹949 per equity share. The IPO is to be listed on BSE & NSE.
When LIC IPO will open?
The IPO is to open on 04 May 2022 for QIB, NII, and Retail Investors.
What is LIC IPO Investors Portion?
The investors' portion for QIB-50%, NII-15%, and Retail 35%.
How to Apply the LIC IPO?
You can apply LIC IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form.
How to Apply the LIC IPO through Zerodha?
Log in to Console in Zerodha Website or in Application. Go to Portfolio and Click on IPO. You will see the IPO Name "LIC". Click on Bid Button. Enter your UPI ID, Quantity and Price. Submit IPO Application Form. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Zerodha.
How to Apply the LIC IPO through Upstox?
Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name "LIC". Click on Bid Button. Confirm your application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox.
How to Apply the LIC IPO through Paytm Money?
Log in to Paytm Money Application with your credentials. Select the IPO. You will see the IPO Name "LIC". Click on Bid Button. Confirm your application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Paytm Money.
What is LIC IPO Size?
LIC IPO size is ₹21,008 crores.
What is LIC IPO Price Band?
LIC IPO Price Band is ₹902 to ₹949.
What is LIC IPO Minimum and Maximum Lot Size?
The minimum bid is 15 Shares with ₹14,235 amount while the maximum bid is 210 shares with ₹199,290.
What is the LIC IPO Allotment Date?
LIC IPO allotment date is 12 May 2022.
What is the LIC IPO Listing Date?
LIC IPO listing date is 17 May 2022. The IPO is to list on BSE and NSE.
