LIC IPO - All the information you need to know by Stock Market Trends

 

  The initial public offering (IPO) of the largest Insurance provider company in India is going to hit primary markets on May 4th 2022. The bid will remain open till 9th May 2022. Government of India (GoI) has fixed the price band of LIC IPO at Rs.902 to Rs.949 per equity share. LIC is functioning through 2048 branches, 113 divisional offices and 1554 satellite offices. LIC was recognised as the 3rd largest and 10th valuable global insurance brand as per the "Insurance 100 2021 report" released by Brand Finance. Through this IPO,  LIC is planning the sale of upto 221, 374, 290 equity shares.

What are the key positive factors??

• LIC is engaged in both insurance and investment. 
• LIC has over 13.5 lakh agents who play brings a large portion of the new business.LIC plans offer 'Fixed returns' alongside life insurance coverage . This makes it simple to sell by agents and carries genuine serenity to the insurers. 
• LIC manages assets of Rs. 39 lakh crores that is more money than the entire mutual fund industry combined.

 

 

Challenges that has to be faced....

• New policy growth is reduced. 
• The valuation of LIC is very difficult as LIC collects money upfront and compensate later. So this cannot be considered as a revenue.

Major dates of LIC IPO

IPO Opening date                   May 4, 2022
IPO Closing date                    May 9, 2022
Basis of allotment                   May 12, 2022
Initiation of refunds                 May 13, 2022
Credit of shares to demat       May 16, 2022
IPO listing date                       May 17, 2022

Discount for LIC policy holders ...... 

The GoI announced a discount of Rs. 60 per equity share for applicants having an LIC policy. They are only eligible for this discount if they have taken the policy before April 13, 2022 ( Day LIC filed its DHRP at SEBI).

Who all are the Major competetors?

1. HDFC Life Insurance                                               Rs. 113000 crore 
2. SBI Life Insurance                                                   Rs. 105000 crore 
3. ICICI Lombard General Insurance company           Rs. 67170 crore 
4. ICICI Prudential Life Insurance                                Rs. 60980 crore 
5. General Insurance corporation of India                    Rs. 19470 crore

Anyway the mega initial share sale of the Life Insurance Corporation of India is finally set to open for retail investors. Investment in stock market must include a backup of detailed research in your own perspective. If this content seems interesting to you , follow this page and stay tuned for the new updates. You can also watch my previous post on stock market trends. Give your suggestions in comment section . That will help in improving quality of my content.