Life Insurance Corporation of India IPO – Globe Capital
Life Insurance Corporation of India IPO
Closed
Price Band
Rs. 902 to 949
IPO Issue Period
May 4, 2022 to May 9, 2022
Issue Size
21,008.48 Cr.
Face value
Rs. 10/-
Fresh issue
NIL
Offer for sale
21,008.48 Cr.
Minimum Shares for Retail
15
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
KFintech Private Limited
Tentative Listing Date
May 17, 2022
QIB
50%
NII
15%
Retail
35%
Price Band
Rs 45 per share
Price Band
Rs 60 per share
Price Band
Rs 45 per share
Retail Discount
Rs 45 per share
Employee Discount
Rs 45 per share
Policy holder Discount
Rs 60 per share

Axis Capital Limited
BofA Securities India Limited
Citigroup Global Markets India Private Limited
Goldman Sachs (India) Securities Private Limited
ICICI Securities Limited
J.P. Morgan India Private Limited
JM Financial Consultants Private Limited
Kotak Mahindra Capital Company Limited
Nomura Financial Advisory And Securities (India) Pvt Ltd
SBI Capital Markets Limited

Life Insurance Corporation of India (LIC) is the largest insurer in the country. It is one of the most trusted brands in the financial sector. LIC has the legacy of more than 65 years in India. It is the largest asset manager in India with the AUM of Rs 36.7 trillion. Its AUM on a standalone basis was equal to 18% of India’s GDP for FY21. While the Indian government has staunchly maintained control of this entity since its inception, the company is finally getting ready for its initial public offering (IPO). It also has subsidiaries in Singapore along with joint ventures in Bahrain, Kenya, Sri Lanka, Nepal, Saudi Arabia, and Bangladesh to name a few.

As the market is abuzz with the potential investment opportunities that will be opened with this mega-IPO, here is all you need to know about the company, the LIC IPO launch date, the LIC IPO price, and how to apply for LIC IPO.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 285,341.93 405,398.50 382,475.52
Profit After Tax 1,715.31 2,974.14 2,710.48
EPS 2.71 4.70 4.29
OPM (%) -% -% -%
PATM (%) -% -% -%
  • LIC is a part insurance and part investment products company. Their plans are a combination of insurance and investment with a guaranteed return.
  • LIC has over 13.5 lakh agents who play brings most of the new business. LIC plans offer ‘fixed returns’ along with life insurance coverage. This makes it easy to sell by agents and brings peace of mind to the insurers.
  • LIC has high trust in the public for both life insurance as well as investment done with them. LIC is synonymous with insurance in India.
  • LIC manage asset of Rs 39 lakh crores. That is more money than the entire mutual fund industry combined. They invest these funds across stocks and bonds. They own 4% of all listed stocks in India and more government bonds than the RBI.
  • Leading insurance provider company in India and fifth largest global insurer by GWP.
  • To achieve the benefits of listing the equity shares on the stock exchange.
  • To carry out an offer for sale of 316,249,885 shares by selling shareholders.

At the upper band of Rs. 949, the IPO at 1.11 times its embedded value compared to domestic insurance firms such as HDFC Life Insurance and SBI Life Insurance are currently trading at 4.05 times and 3.10 times their embedded values while ICICI Prudential Life is at 2.5 times, which looks very attractive. Hence,  investors may consider investing in this issue for the long term.

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