LIC of India IPO

Life Insurance Corporation of India is an investment and insurance corporation owned by the Government of India. LIC is the only life insurance company in the Indian public sector with an extensive presence in rural and urban areas. It operates through 8 zonal and 113 divisional offices.

As a part of its ambitious disinvestment endeavour, the Central Government aims to list Life Insurance Corporation of India (LIC) by the last quarter of this fiscal year.

LIC IPO Objectives

- To address working capital requirements
- To meet corporate purposes

LIC IPO - Details

This IPO is likely to be the biggest initial public offering in the Indian stock market. The expected price band of the LIC IPO could be anywhere between Rs. 400 and Rs. 600.

The Government of India plans to launch the LIC IPO by this year’s last quarter. However, the tentative dates for the IPO events are yet to be disclosed. Once the information is available, we will update the same accordingly.

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Opening Date

To be updated

Closing Date

To be updated

Price Band

To be updated

per equity share

Issue Size

₹ To be updated

Face Value

₹ To be updated

per equity share

Market Lot

To be updated

Listing at NSE, BSE

LIC IPO Important Dates

IPO Open Date Not announced
IPO Close Date Not announced
Basis Of Allotment Date Not announced
Initiation Of Refunds Not announced
Credit Of Shares To
Demat ACcount
Not announced
IPO Listing Date Not announced
UPI Mandate Expiry Date Not announced

Why should you invest in LIC IPO?

These are among the primary reasons why individuals should consider investing in this IPO –

- The Life Insurance Corporation of India boasts a reputed brand with stable financial standing and robust market presence.

- Investing in LIC could favour investors significantly. The company clocked stock market profits of more than Rs. 10,000 crores in this June quarter. Its strong fiscal standing, robust fund size, and association with the government make LIC a lucrative investment opportunity for many.

LIC’s investee companies

LIC is touted as the biggest investor in India. It has bought shares worth Rs. 90,000 crores in this FY21. Moreover, it plans to touch a stock market investment of Rs. 8 lakh crores by the end of this fiscal year.

Here are some of the most noteworthy investees of LIC –

Stock Quantity held Holding %
Canara Bank 133,627,205 8.11%
Bank of Baroda 248,334,291 4.80%
Biocon Ltd. 49,374,988 4.11%
PTC India Ltd. 17,654,072 5.96%
ABB Power Products and Systems India Ltd. 1,881,348 4.44%
Indian Overseas Bank 228,087,493 1.21%
Reliance Infrastructure Ltd. 6,989,930 2.68%
ABB India Ltd. 8,376,287 3.95%
BEML Ltd. 515,435 1.24%
Aditya Birla Capital Ltd. 51,407,882 2.13%
Hindustan Zinc Ltd. 96,246,636 2.28%
Aban Offshore Ltd. 1,000,000 1.71%
Titan Company Ltd. 35,163,104 3.96%

How to apply for LIC IPO?

You can apply for the LIC IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book LIC IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for LIC IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

LIC IPO - Noteworthy Highlights

LIC is the only government-owned insurance company in the country. The entity was formed by merging around 245 insurance companies. Other highlights include –

- Per the 2019-2020 annual report, LIC occupies 69% of the market share in the life insurance segment.

- Besides life insurance, the company also extends mutual funds, pension funds, housing finance, and card services.

-Besides digital payment, the company is adept at cross-selling small sachets of insurance policies and loans.

- As of 31 March 2021, there were around 13.53 lakhs individual LIC agents.

- It has more than 1.14 lakh employees.

LIC IPO - SWOT Analysis

strengths

Strengths

  • Multiple offerings: LIC offers various insurance plans. The most popular products include life insurance policies, money back plans, endowment plans, insurance riders, and term insurance plans.
  • Diversified business portfolio: LIC boasts a diversified business portfolio. Some of its most noteworthy lines of business include LIC Housing Finance, LIC Pension Fund, LIC Card Services, and LIC Mutual Fund.
  • Sizeable fund base: The company operates with a fund base of nearly Rs. 289.57 crores. Additionally, India's largest investor has a robust financial standing with sufficient flexibility to grow and expand its portfolio further.
Weaknesses

Weaknesses

  • Restrictions on PSU: LIC is subject to various restrictions since it’s a PSU. Such restrictions could emerge as a roadblock to the operational and expansion goals of this company.
  • Large workforce: LIC has more than 1 lakh employees. Maintaining such a large workforce can become challenging, especially during a financial crisis.
Opportunities

Opportunities

  • Online services: The online offerings of LIC cater to a large pool of tech-savvy customers. LIC could tap into the urban market like never before by leveraging the IPO proceeds to establish an extensive digital footprint.
  • Increase in disposable income: A surge in individuals’ disposable income and greater awareness about the importance of being insured could continue to favour LIC’s growth.
Threats

Threats

  • Competition: Several private insurance policy companies and NBFCs are now active in the market. The unique offerings and more customised services of these competitors could pose a threat to LIC.
  • Changes in the fiscal policy: 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.

LIC IPO - Competitive Analysis

LIC of India is the largest life insurance policy provider in the country with a massive market capitalisation.

However, these entities are among LIC's most noteworthy competitors. The table below offers an insight into its competition and market standing in the last year.

Competitor Market capitalisation Gains
HDFC Life Insurance 14.45% 14.63%
SBI Life Insurance 20.95% 20.84%
ICICI Lombard General Insurance Company 20.44% 20.77%
ICICI Prudential Life Insurance 45.01% 44.97%
General Insurance Corporation of India 25.15% 24.91%
New India Assurance Company 48.21% 48.21%
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Brand recognition: The company has a global footprint in more than 24 countries with a partnered network of over 1.5 million restaurants.
  • Business model: Zomato follows a B2C business model that connects customers to a wide network of restaurants. The company has an asset-less business model, giving it high financial leverage.
  • Marketing: Zomato follows a robustly creative marketing strategy both online and offline. Accordingly, it has a decent customer engagement and has over 11.2 million active users each month.
  • User-friendly: The Zomato app and web portal come with an easy-to-navigate UI.

Weaknesses 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

Opportunities 

  • Market expansion: Zomato is active in 25 countries. Moreover, it has not reached the saturation point yet. Therefore, given its current market momentum and growth potential, it can be expected that the food delivery service will witness upward mobility and rapid market expansion in the next couple of years.
  • Online users: The percentage of smartphones users with interest access is increasing every day. This opens up a great growth opportunity for Zomato to expand its target base and market presence.
  • Technological development: As the tech space continues to bring in newer innovations, it could open newer paths for Zomato to explore.

Threats 

  • Competition: Newer food delivery platforms with unique offerings are mushrooming now more than ever. It not only limits Zomato’s market expansion scope but also imposes a threat to its existing customer base.
  • Business model: Though Zomato’s business model is currently working in its favour, there are high chances tech developments could impose a foundational threat. If Zomato stops innovating and improving its customer service, its very successful business model could restrain its potential.

LIC IPO FAQs

What is LIC IPO?

The government is diluting its stake in LIC through this upcoming IPO. It is an invitation for the public to participate in its ownership. Post listing, the company will come under the regulations of SEBI.

When will LIC IPO open for subscription?

There is no information available as of the time of writing.

What is the minimum lot size that retail investors can subscribe?

The company has not disclosed any information in this regard.

When is the LIC IPO listing date?

The LIC IPO timeline is yet to be announced.

How will I receive shares?

The LIC shares will be credited to the Demat account post allotment.

Who are the merchant bankers for LIC IPO?

The Central Government is yet to appoint merchant bankers for this upcoming IPO.

What is the minimum order quantity for LIC IPO?

The company has not released any data yet.

Who is the registrar for LIC IPO?

We will share all the relevant details once the company offers more information.

Which categories of investors are allowed to participate in this IPO?

Retail individual, NIB, and QIB are the expected categories that can participate in this IPO.

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