Home ยป LIC IPO Details – Check Issue Date, Price Range and Lot Size

LIC IPO Details – Check Issue Date, Price Range and Lot Size

LIC is a behemoth like no other. India’s biggest upcoming LIC IPO is here!

Open Date4th May 2022
Close Date9th May 2022
Minimum InvestmentRs. 13,530
Lot Size15
Price RangeRs. 902 – Rs. 949
Issue SizeRs. 21,000 Crore
Refer – LIC IPO DRPH

About LIC

Life Insurance Corporation of India (LIC) has been providing life insurance in India for more than 65 years and is the largest life insurer in India. LIC was formed in 1956 by merging and nationalising around 245 private life insurance companies. It has the largest asset manager in India. LIC has a broadly diversified product portfolio covering various segments across individual products and group products. These include savings insurance products, term insurance products, health insurance products, annuity, and pension products, and unit-linked insurance products.

You can also read about Life Insurance Corporation of India to learn some interesting facts about the history of Insurance, how LIC was created, the growth of LIC right here.

Objectives of the LIC IPO

The aim of the LIC IPO is to achieve the benefits of listing the equity shares on the stock exchange and the government aims to get 21,000 crores by offloading 3.5% of its shares. This will enhance the brand image & provide a public market for the equity shares in India.

Strengths

  • LIC offers both insurance and investment products. Their plans are a combination of insurance and investment with a guaranteed return.
  • A network of 13 lakh agents backs up LIC’s 65-year history
  • LIC manages assets of Rs 39 lakh crores. That is more money than the entire mutual fund industry combined. They invest these funds across stocks and bonds.
  • Leading insurance provider company in India and fifth largest global insurer by GWP.
  • There are a variety of life insurance products to meet the needs of individuals.
  • LIC has a reliable risk management framework
  •  They own 4% of all listed stocks in India and more government bonds than the RBI.

Risks

  • LIC has poor new policy growth as they continue losing market share to private insurance players, especially in urban areas.
  • Investment & insurance products have a low margin.
  • It’s very difficult to value LIC as the business model is unlike any other company. LIC collects money upfront and then promises to compensate policyholders at a later stage. The premiums they collect (part insurance and part investment) cannot be recognized as revenue.
  • LIC has more than 1 lakh employees. Maintaining such a large workforce can become challenging, especially during a financial crisis.
  • Changes in RBI’s monetary and fiscal policies can prompt LIC to modify its policies accordingly. Such changes can be counterintuitive to the company’s earnings or scope of operations.
  • For a significant portion of its revenue, it relies on the sales of participating products and single premium products.

LIC’s market share compared to its competitors

CompanyMarket Share
LIC64.1%
SBI Life Insurance7.9%
HDFC Life Insurance6.1%
ICICI Prudential Life Insurance5.6%
Max Life Insurance3%
Bajaj Allianz Life Insurance1.91%
Other11%
*As per the DRHP filed by LIC

Asset diversification of LIC

Investments% Share
Central Government Securities37.45
Equity24.77
State Government Securities24.62
Debentures & Bonds8.06
Loans3.07
Venture Funds, MF & ETFs0.78
Other Approved Securities0.66
Money Market Instruments0.22
Other Investments0.37

LIC Profit & Loss Statement from last 3 years

You can also read other interesting articles like Vedenta 52W high story and HDFC Bank Merger right here!

Happy Investing ๐Ÿ˜‡

Disclaimer: This blog is not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your own due diligence or consult a trained financial professional before investing.

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