Table of Contents
Today we are sharing LIC IPO today GMP and IPO review with all-important IPO information. The Life Insurance Corporation of India (LIC) was founded on September 1, 1956, with its headquarters in Mumbai. LIC is India’s only state retained insurance company. They have been offering insurance coverage in India for over 65 years and are the ‘s biggest life insurers. On September 1, 1956, LIC was created by consolidating and nationalizing 245 private sector insurance firms in India, with a startup investment of one million rupees. We were India’s only life insurance from the time our company was founded till 2000.
The company is providing life insurance in India for even more than 65 years and is the ‘s biggest life insurer, with a market share of 64.1 percent in terms of premiums (or GWP), 66.2 percent in terms of New Business Premium (or NBP), 74.6 percent in terms of individual policies issued, and 81.1 percent in terms of group plans offered for Fiscal 2021, as well as the number of individual agents.
The LIC IPO date has not yet been set; nevertheless, market speculation suggests that the IPO would take place in April or May 2022. The LIC IPO is expected to be among the largest in India’s history. With no Fresh Issue, the LIC IPO DRHP filed for a full sale of shares. The government plans to sell a 5% interest in the company in a mammoth IPO. The LIC IPO is expected to collect roughly – crores through a combination of a new issue of – and an offer for sale of up to 316,249,885 equity capital worth $10 apiece. Retail has a 35 percent quota, QIB has a 50 percent quota, and HNI has a 15 percent quota.
Life Insurance Group has a market share of approximately 71 percent and a 66 percent share of total premium collection. The brand was valued at between Rs. 9 lakh and Rs. 10 lakh crore.
LIC IPO Today GMP
LIC IPO today GMP is trading at 40 rupees with 5% listing gains.
LIC IPO Details:
- Almost 14 lakh agents for LIC, generating revenue and earning commissions.
- The Life Insurance Corporation of India (LIC) is among India’s foremost reputable insurance firms
- The company manages around 40 lakh crores of assets, utilizing these funds in the stock market and bonds.
- LIC is the world’s fifth-largest insurance company.
- LIC has 2000+ branches, 110+ divisional offices, and 1550+ Satellite Offices.
- LIC rate of returns: According to market predictions, the government of the LIC was looking for a valuation of approximately Rs 16 lakh crores.
- IPO-bound LIC has recorded a profit of Rs 1,440 crore for the first half of FY22. – Money management
- The LIC IPO Proposal Paper is Expected to be Filed This Month: LIC IPO Date, Price, and Key Facts – Network18
- LIC will launch India’s largest initial public offering (IPO) by mid-March – Economic Times
- The Centre is reaching out to shareholders ahead of the LIC IPO; embedded value is expected by August, according to the report. -TimesNowNews.com
- The LIC IPO is expected to raise up to 25,000 crores from over 24 anchor investors, according to business today.
LIC IPO assessment
| Earning per share (EPS) | Rs. 4.75 per share |
| P/E /Earning | n/a |
| Return on Net Worth | 45.70% |
| Net Asset Value | 10.30 per Equity |
LIC IPO price band
The pricing range for Life Insurance Corporation of India’s (LIC) initial public offering has already been set at Rs 908 to Rs 948, with a Rs 60 reduction for subscribers.The govt may earn worth rs 22,000 crore at the top of the price range.
The reduction will be Rs 40 for merchants and staff, according to people familiar with the situation.
Some important turning points in LIC business
- The following are some significant milestones in India’s life insurance industry:
- In 1818 The Oriental Life Insurance Firm, India’s first life insurance company, begins operations.
- The first Indian life insurance company, Bombay Mutual Life Assurance Society, began operations in 1870
- In 1912 The Indian Lite Assurance Companies Act is passed, becoming the first law to govern the life insurance industry in India.
- The Indian Insurance Companies Act was enacted in 1928 to allow the government to collect statistical data on insurance companies in India.
- In 1928The Insurance Act consolidates and amends previous legislation to safeguard the insuring public’s interests.
Main challenges
- The number of new policies issued by LIC is weak, as the business appears to have lost share of the market to insurance companies, especially in urban areas.
- Insurance and investment items have a low-profit margin.
- It’s impossible to put a value on LIC because its marketing strategy is unlike any other.
- The LIC takes money upfront and then pledges to reimburse policyholders later. They can’t count the premium they collect as profit.
LIC IPO Financial Information
| Particulars | For period/year ( Rs. In millions ) | |||
| 30 Sept 2021 | 31 Mar. 2021 | 31 Mar-2020 | 31 Mar 19 | |
| Total Assets | 40, 434,598 | 37,464,044 | 34,141,745 | 33,663,346 |
| Total Revenue | 15, 198 | 29,856 | 27,310 | 26,450 |
| Profit After Tax | 15,041 | 29,742 | 27,105 | 26,273 |
LIC Basic And Diluted profit per share
| Financial period | Basic EPS | Diluted EPS | Weight |
| 2021 | 4.68 | 4.70 | 3 |
| 2020 | 4.29 | 4.29 | 2 |
| 2019 | 4.15 | 4.15 | 1 |
| Weight average | 4.47 | 4.47 | |
| 30 Sept 2021 | 2.38 | 2.38 |
LIC Objectives
- To get the advantages of stockmarket listings of equity shares.
- Selling stockholders will make offers to sell 316,249,885 shares.
LIC Peer Partners
- SBI Life insurance
- HDFC life insurance
- ICICI prudential life insurance
LIC IPO Review
shareholders and institutions are attentively monitoring every activity at every stage of the LIC IPO and have high expectations.The IPO is anticipated to be the biggest in the country.
The company contributes significantly to the GDP and the Indian economy.
The IPO will assist the government in meeting its disinvestment goal for 2020-21. It’s likely to boost the stock market and the economy. According to one rumour, the LIC IPO’s expected price band will be between Rs. 400 and Rs. 600.
LIC IPO Important dates
| Price band declaration | N/A |
| Anchor investor allotment | N/A |
| IPO open date | N/A |
| IPO close date | N/A |
| Basis of Allotment | N/A |
| Refunds | N/A |
| Credit to Demat account | N/A |
| IPO listing date | N/A |
Is it wise to invest in LIC?
Being the first business to gain SEBI permission on DRHP in 2022, the LIC IPO has already created a stir in the market.
The organization currently has a strong broad customer base of roughly 21,342 customers.
To grow its activities, LIC purchased Spoton Logistics, a B2B delivery company, in December 2021, and in December 2022, it bought Transition Robotics Inc., a California-based ill-mannered airplane company.
In areas such as infrastructure, technologies, and growth, the company is steadily improving.
LIC IPO Conclusion
The LIC is the only public agency that provides insurance services and is often regarded as the most reliable. The government would continue to own the entirety of LIC even after the IPO.
The LIC IPO is believed to assist the industry recovery, allowing for more expansion and improvement. According to sources, the LIC IPO would have a significant oversubscription.
The listing is likely to benefit investors and policyholders because the insurance organization will be governed by SEBI laws following the listing, resulting in increased transparency and efficiency. The IPO is extremely important for the economy as a whole.
After all of the setbacks caused by COVID-19, the IPO could have a positive impact. The initial public offering (IPO) is a good way for them to invest their money.
