LIC IPO

Life Insurance Corporation of India

IPO Details

• Bidding Dates

  To be announced

• Min. Investment

• Lot Size

• Price Range

• Issue Size

  To be announced

• IPO Doc

  (D)RHP PDF

An Overview of the LIC Initial Public Offering

The Government of India owns the Life Insurance Corporation of India, which is an investment and insurance company. LIC is the only public sector life insurance business in India having a large presence in both rural and urban regions. It has 8 zone offices and 113 divisional offices. The Central Government plans to list LIC by the end of current fiscal year as part of its ambitious disinvestment plan.

LIC's Initial Public Offering (IPO) Goals

• To satisfy the need for working capital.

• To achieve company objectives.

Details on the LIC Initial Public Offering

This IPO is expected to be the largest in the Indian stock market's history. The pricing range for the LIC IPO is estimated to be between Rs. 400 and Rs. 600. The Government of India intends to launch the LIC IPO in the fourth quarter of this year. The anticipated dates for the IPO activities, however, have yet to be revealed. We will update the information as soon as it becomes available.

Important Dates for the LIC IPO

Why should you invest in the LIC Initial Public Offering (IPO)?

These are some of the main reasons why people might consider investing in this initial public offering

• The Life Insurance Corporation of India is a well-known brand with a strong market presence and a solid financial status.

• Investing in LIC’s IPO may provide major benefits to investors. In the June quarter, the corporation made stock market earnings of almost Rs 10,000 crores.

• For many, LIC is an attractive investment prospect because of its excellent financial position, large fund size, and government affiliation.

Companies in whom LIC has invested are known as LIC investors

LIC is regarded as India's largest investor. In FY21, it purchased shares for Rs. 90,000 crores. It also intends to invest Rs. 8 lakh crores in the stock market by the end of current fiscal year.

Here are a few of LIC's most notable investors:

How can I apply for the LIC Initial Public Offering (IPO)?

There are many methods to apply for the LIC IPO:

• UPI - Register your Ashika Group Demat account with your bank account and a verified UPI ID. Use the ID to book LIC IPO shares, confirm the payment on the UPI app, and set aside the funds for allocation.

• Depository Account - If you are already a customer of Ashika Group, go to their website and apply for the LIC IPO directly. If you're a first-time investor, open a free Demat account with Ashika Group to get started on your investing adventure.

Highlights from the LIC IPO

LIC is the country's sole government-owned insurance business. Around 245 insurance businesses were merged to establish the organization. Among the other highlights are:

• LIC has 69 percent of the market share in the life insurance industry, according to the 2019-2020 annual report.

• In addition to life insurance, the firm offers mutual funds, pension funds, home financing, and credit card services.

• In addition to accepting digital payments, the firm excels at cross-selling little packets of insurance and loans.

• There were around 13.53 lakh individual LIC agents as of March 31, 2021.

• It employs around 1.14 lakh people.

SWOT Analysis of the LIC IPO

Strengths

• Variety of insurance options: Life insurance policies, money back plans, endowment plans, insurance riders, and term insurance plans are among the most popular products.

• Business portfolio diversification: LIC has a diverse business portfolio. LIC Housing Finance, LIC Pension Fund, LIC Card Services, and LIC Mutual Fund are some of the company's most well-known areas of business.

• Large fund base: The firm has a fund base of nearly Rs. 289.57 crores. Furthermore, India's biggest investor has a strong financial position and enough freedom to develop and extend its portfolio.

Weaknesses

• PSU Limitations: As a PSU, LIC is subject to a number of restrictions. Such limitations may prove to be a stumbling hurdle to the company's operating and growth aspirations.

• Large workforce: Maintaining such a huge staff may be difficult, particularly during a recession.

Opportunities

• Online services: LIC's online services appeal to a wide number of tech-savvy clients. By utilizing the IPO revenues to develop a large digital presence, LIC could get into the urban market like never before.

• Increased disposable income: As people's disposable income rises, so does their knowledge of the need of being insured, which might help LIC continue to develop.

Threats

• Rivals: Several private insurance policy businesses and non-bank financial institutions (NBFIs) are currently operating in the market. These rivals' unique offers and more customized services may represent a challenge to LIC.

• Changes in fiscal policy: LIC's policies may be influenced by changes in the RBI's monetary and fiscal policies. Changes like this might have a negative impact on a company's profits or scope of operations.

Competitive Analysis of the LIC IPO

The Life Insurance Corporation of India is the country's biggest life insurance policy provider, with a significant market capitalization. These organizations, on the other hand, are among LIC's most notable rivals. In the previous year, the table below shows its competitors and market position.