LIC IPO

Life Insurance Corporation of India has been offering life insurance in India for over 65 years and is the country ‘s biggest life insurer. LIC IPO will hit the stock market in 04 May 2022.

About LIC

They have a 64.1 percent market share in terms of premiums, a 66.2 percent market share in aspects of New Business Premium, a 74.6 percent market share in relation to individual policies issued, an 81.1 percent market share in terms of group policies issued in 2021, and a 55 percent market share in terms of individual agents as of March 31, 2021.

When compared to the leading companies in the top seven markets internationally, they had the greatest disparity in market share by life insurance GWP comparing to the second-largest life insurer in India.

This is due to their vast agent network, proven track record, significant trust in the LIC brand, and their Corporation’s 65-year history.

Asset Management

As of September 30, 2021, their Company was the biggest asset manager in India, with a standalone AUM (consisting policyholders’ investment, shareholders’ investment, and assets retained to satisfy associated liabilities) of 39,558,929.24 million.

• It was more than 3.3 times the entire AUM of all Indian private life insurers.
• In terms of AUM, it is roughly 16.2 times larger than the AUM of the second-largest company in the Indian life insurance business.
• More than 1.1 times the total AUM of the Indian mutual fund sector
• It is 18.5 percent of India’s total annualised GDP.

According to the CRISIL Report, as of September 30, 2021, their Company’s interests in listed stock totaled approximately 4% of the total market capitalisation of the NSE.

Brand

According to Brand Finance’s “Insurance 100 2021 study,” Life Insurance Corporation of India’s brand, LIC, is the third strongest and tenth most valuable worldwide insurance brand.

The feasibility of a brand’s success on intangible indicators relative to its rivals is measured by examining the brand’s marketing investment, stakeholder equity, and impact on company performance. A brand’s value is the present worth of earnings that are directly tied to the brand’s reputation.

WPP Kantar named LIC the second most valuable brand in India in the report “BrandZTM Top 75 Most Valuable Indian Brands” for 2018, 2019, and 2020. LIC has a diverse product offering that includes individual and group products in a variety of areas.

LIC IPO

Life Insurance Corporation of India, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 316,249,885 equity shares on 13 February 2022.

The offer doesn’t includes any fresh issue and there is offer for sale (OFS) of 316,249,885 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They got approval for IPO from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	40,43,459.67	37,46,404.47	34,14,174.57	33,66,334.62
Total Revenue	3,38,492.64	7,06,695.02	6,48,336.43	5,73,454.57
Profit After Tax	1,504.01	2,974.14	2,710.48	2,627.38

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	4.70	4.70	3
Financial Year 2020	4.29	4.29	2
Financial Year 2019	4.15	4.15	1
Weighted Average	4.47	4.47
30 Sep. 2021	2.38	2.38

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

• The 5th biggest life insurer in the world by GWP and the dominant participant in the rapidly growing and underserved Indian life insurance business.
• A reliable brand and a customer-focused business model.
• A cross-cyclical product mix that meets a wide range of client requirements, as well as an individual product portfolio driven by participation life insurance plans.
• With an unrivalled agency force, they have a presence throughout India.
• Using technology to help customers connect and generate operational advantages.
• India’s biggest asset manager, having a proven track record of financial performance and profitable development.
• A strong risk management structure.
• A highly seasoned and skilled management team, a respected Board of Directors, and a solid corporate governance framework are all in place.

Life Insurance Corporation of India Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	SBI Life Insurance Company Limited	81.46
2	10	HDFC Life Insurance Company Limited	94.26
3	10	ICICI Prudential Life Insurance Company Limited	81.83

LIC IPO Details

IPO Opening Date	04 May 2022
IPO Closing Date	09 May 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	902 to 949 per equity share
Discount	60(Policy Holder) & 45(Retail & EMP)
Market Lot	15
Min Amount	14235
Listing At	BSE, NSE
Issue Size	316,249,885 Equity Shares
Fresh Issue	0
Offer for Sale	316,249,885 Equity Shares

LIC IPO Date

Life Insurance Corporation of India IPO opening date is 04 May 2022, and the closing date is 09 May 2022. The Life Insurance Corporation of India issue may list in 17 May 2022.

IPO Opening Date	04 May 2022
IPO Closing Date	09 May 2022
Basis of Allotment Date	12 May 2022
Initiation of Refunds	12 May 2022
Credit of Shares to Demat Account	16 May 2022
IPO Listing Date	17 May 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Life Insurance Corporation of India IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Life Insurance Corporation of India IPO.

LIC IPO GMP

Life Insurance Corporation of India IPO Grey Market Premium is 38. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
10 May 2022	38	1800	150
09 May 2022	42	2600	250
08 May 2022	44	2100	200
07 May 2022	47	2300	200
06 May 2022	66	3300	350
05 May 2022	63	4700	500
04 May 2022	58	5400	550
03 May 2022	79	7500	750
02 May 2022	77	4700	500
01 May 2022	82	3500	400
30 April 2022	87	2500	250
29 April 2022	72	0	0
28 April 2022	21	0	0
27 April 2022	39	0	0

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Life Insurance Corporation of India IPO Review

Life Insurance Corporation of India IPO review : If you are looking for advise regarding LIC IPO is good or bad than you can apply in this IPO with a long term view.

The company is big and popular as they have reach to every middle Indian household. However, the short term gain like listing gain will not go beyond 10 to 15%.

Life Insurance Corporation of India IPO Risk

1. The ongoing COVID-19 outbreak could have a negative impact on all elements of their business.
2. Their trademark, reputation, and perception are vital to their continued dominance in the Indian life insurance sector.
3. Adverse persistency measures or a negative variation in persistency metrics could have a materially negative impact on their financial state.
4. Interest rate volatility can have a significant and negative impact on their profitability.
5. The practical difficulty of integrated value calculations is considerable.
6. Participating items provide a major share of their corporation’s overall new business premiums.
7. Their risk management policies, processes, and internal controls, and also the risk management instruments at their disposal, may be insufficient or ineffective.
8. There are important legal processes pending against their Corporation.

Other Threats

1. In the future, they may be obliged to inject additional funds into IDBI Bank.
2. They confront tremendous competition, and if they are incapable to compete effectively, their business may suffer materially.
3. Adjustments in their Corporation’s surplus distribution strategy may lower the appeal of their contributing products, thus harming their business.
4. If they are unable to secure regulatory permissions or maintain their present regulatory approvals or licences, their business may suffer.
5. They are subject to several sorts of operational risks, the development of any of which could have a major detrimental effect on their business.
6. They are vulnerable to malfeasance and fraud by their staff, which could harm their reputation.

Network

Individual agents, bancassurance associates, intermediate channels (corporate agents, intermediaries, and insurance marketing companies), digital sales (through a platform on Corporation’s official site), Micro Insurance agents, and Point of Sales Persons-Life Insurance scheme make up their Company’s omni-channel distribution platform for individual products. Individual policies from their company are mainly distributed by their individual agents.

Their individual agents were accountable for procuring 96.69 percent, 95.73 percent, 94.78 percent, and 96.42 percent of their Corporation’s NBP for their individual products in India in Fiscal 2019, Fiscal 2020, Fiscal 2021, and the six months ending September 30, 2021, correspondingly.

As of March 31, 2021, their Corporation had the biggest individual agent network across life insurance corporations in India, with around 1.35 million individual agents.

Life Insurance Corporation of India IPO Brokerage views

Here is the views of different stock brokers regarding this IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Life Insurance Corporation of India IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
04 May 2022	1
05 May 2022	2
06 May 2022	3
07 May 2022	4
08 May 2022	5
09 May 2022	6

Management

Their company boasts a well-trained and experienced top management. All of their key management personnel have over decades of experience in the insurance industry, having worked in various areas of India in various capacities (both administrative and marketing), and having led branches, divisions, and zones throughout India.

Several of them have also worked in other countries. They feel that their Key Managerial Personnel’s expertise will give them a competitive edge in implementing their business goals and adapting to changing consumer preferences as well as changes in their business and regulatory environment.

They have a solid corporate governance framework and a board of highly esteemed government representatives.

Promoters

• President of India

Promoter’s Holding

Pre Issue Share Holding	100%
Post Issue Share Holding

Life Insurance Corporation of India Prospectus