LIC IPO to be one of the biggest IPOs ever launched in India. LIC IPO DRHP filed for a full offer for sale, no Fresh Issue. The government to sell a 5% stake via mega IPO. LIC IPO to raise around - crores via IPO that comprises fresh issue of - and offer for sale up to 316,249,885 equity shares of ₹10 each. The retail quota is 35% while QIB is 50% and HNI is 15%.
Life Insurance Corporation of India aka LIC IPO is going to hit the market in March 2022 as per the market speculations. The LIC IPO will be one of the biggest IPOs in the Indian Market. The government to sell their 5% stake via IPO. The IPO to list on NSE and BSE. The IPO is a part of the disinvestment of the Government stack in the company. It will a great opportunity for retail investors and employees to invest in the company for the longer-term and short term. As per the speculations, the LIC Policy Holders may get the quota to apply for the LIC IPO.
Life Insurance Corporation is controlling around 72% of the market and around 66% share in total premium collection. The valuation of the company stayed around ₹9 Lakh to ₹10 Lakh crore. The company was founded way back in 1956. It's a merger of 245 insurance companies. The company had a monopoly in life insurance till the 1990s, after that the government gives a chance to the private sector in life insurance. They have around 2000+ branches in India with 8 zonal offices situated in Delhi, Chennai, Mumbai, Bhopal, Hyderabad, Patna, Kanpur, and Kolkata. They have 100+ divisional offices, 1100+ mini offices, and 1500+ satellite offices. Stay tuned for LIC IPO date, price band, and market lot details.
Peer Group Listing:
- SBI Life Insurance Company
- HDFC Life Insurance Company
- ICICI Prudential Life Insurance Company
LIC IPO Valuation:
Category Break up:
Anchor: 8,06,43,751 Shares = 16,935.18 Crores (at 2,100/-)
QIB: 5,37,62,480 Shares = 11,290.12 Crores (at 2,100/-)
NII: 4,03,21,860 Shares = 8,467.59 Crores (at 2,100/-)
RII: 9,40,84,341 Shares = 19,757.71 Crores (Lot size: 7 = 1,34,40,620 Forms)
Employees: 1,58,12,494 Shares = 2,988.56 Crores (10% discount = at 1,890/-)
Policy Holders: 3,16,24,989 Shares = 5,977.12 Crores (10% discount = at 1,890/-)
Total Issue: 31,62,49,885 Shares = 65,416.29 Crores.
Subscription required for 1X
RII = 1,34,40,620 Forms
NII = 8,467.59 Crores
Life Insurance Corporation of India IPO: Financial Information (Basis of Valuation)
The information is collated from the following documents:
1) DRHP = Draft Red Herring Prospectus Dated February 13, 2022 (652 pages)
EPS Data:
EPS for FY18-19 >>> Rs 4.15 (Page #97 of DRHP)
EPS for FY19-20 >>> Rs.4.29 (Page #97 of DRHP)
EPS for FY20-21 >>> Rs.4.70 (Page #97 of DRHP)
EPS for H121-22 >>> Rs.2.38 (Page #97 of DRHP)
RoNW Data:
RoNW for FY18-19 >>> 322.25% (Page #98 of DRHP)
RoNW for FY19-20 >>> 317.14% (Page #98 of DRHP)
RoNW for FY20-21 >>> 45.65% (Page #98 of DRHP)
RoNW for H121-22 >>> 18.76% (Page #98 of DRHP)
NAV as of September 30, 2021, was Rs.12.68 (Page #98 of DRHP)
LIC IPO Updates:
- Guide: How to Link PAN with LIC Policy
- LIC Valuations: As per the market speculations LIC government was aiming for a LIC valuation of around Rs 15 lakh crores
- IPO-bound LIC reports net profit of Rs 1,437 crore for H1FY22 - Moneycontrol
- LIC IPO Draft Paper Filing Likely this Month: LIC IPO Date, Price, Key Things to Know - Network18
- LIC to open India's biggest IPO issue by mid-March - Economic Times
- Centre reaches out to investors ahead of LIC IPO; embedded value likely by August: Report - TimesNowNews
- LIC IPO: Centre plans to raise up to ₹25,000 cr from over 24 anchor investors - BusinessToday
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LIC IPO Date & Price Band (Tentative)
The below given IPO details are not confirmed yet by the officials. We will make the changes according to the official announcements. Stay tuned for the updates.
| IPO Open: | 10 March 2022 |
| IPO Close: | 14 March 2022 |
| IPO Size: | Approx ₹80000 - ₹100000 Crores |
| Fresh Issue: | Approx - Crores |
| Offer for Sale: | Approx 316,249,885 Equity Shares |
| Face Value: | ₹10 Per Equity Share |
| Price Band: | ₹2000 to ₹2100 Per Share |
| Listing on: | BSE & NSE |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
| Discount: | 10% for Employee & Policy Holders |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
LIC IPO Market Lot (Tentative)
The LIC IPO minimum market lot is 7 shares with ₹14700 application amount. The retail investors can apply up-to 13 lots with 91 shares or ₹191,100 amount.
| Minimum Lot Size: | Minimum 7 Shares |
| Minimum Amount: | ₹14700 |
| Maximum Lot Size: | Maximum 91 Shares |
| Maximum Amount: | ₹191,100 |
LIC IPO Date, Time Table, Allotment & Listing
The LIC IPO date is 10 March 2022 and the close date is 14 March 2022. The allotment will be finalized on 17 March 2022 and the IPO may list on 23 March 2022.
| Price Band Announcement: | 07 March 2022 |
| Anchor Investors Allotment: | 09 March 2022 |
| IPO Open Date: | 10 March 2022 |
| IPO Close Date: | 14 March 2022 |
| Basis of Allotment: | 17 March 2022 |
| Refunds: | 21 March 2022 |
| Credit to Demat Account: | 22 March 2022 |
| IPO Listing Date: | 23 March 2022 |
LIC IPO Form
How to apply for the LIC IPO? You can apply for LIC IPO via ASBA available in your bank account. Just go to the online bank login and apply via your bank account by selecting the LIC IPO in the Invest section. The other option you can apply for LIC IPO via IPO forms download via NSE and BSE. Check out the LIC forms - click NSE Forms & BSE Forms blank IPO forms download, fill, and submit in your bank or with your broker.
LIC Company Financial Report
| ₹ in Crores | |||||
| Revenue | Expense | PAT |
|||
| 2019 | ₹2645 | ₹2.63 | ₹2627 | ||
| 2020 | ₹2731 | ₹1.24 | ₹2710 | ||
| 2021 | ₹2986 | ₹5.22 | ₹2974 | ||
| 2021 6M |
₹1520 | ₹0.25 | ₹1504 | ||
Company Promoters
- The President of India, Acting Through The Ministry Of Finance, Government of India
About LIC
Every day we wake up to the fact that more than 250 million lives are part of our family called LIC.
We are humbled by the magnitude of the responsibility we carry and realize the lives that are associated with us are very valuable indeed.
Though this journey started over six decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 61 years has been a process called TRUST.
We are humbled by the magnitude of the responsibility we carry and realize the lives that are associated with us are very valuable indeed.
Though this journey started over six decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 61 years has been a process called TRUST.
The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era - past few centuries - its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of the European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of the first Indian life insurance company in the year 1870 and covered Indian lives at normal rates. Starting as an Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. United India in Madras, National Indian and National Insurance in Calcutta, and the Co-operative Assurance at Lahore were established in 1906. In 1907, the Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance, and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912, India had no legislation to regulate the insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, of 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw a lot of growth in the insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over the insurance business. The demand for nationalization of the life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially, the management of the companies were taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reaching all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices, and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy, it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the Corporate office. LIC’s Wide Area Network covers 113divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer online premium collection facilities in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from online Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune, and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner, and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of the life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.
» Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.
1912: The Indian Life Assurance Companies Act was enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act was enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
» Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act was amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. GIC incorporated as a company.
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of the European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of the first Indian life insurance company in the year 1870 and covered Indian lives at normal rates. Starting as an Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. United India in Madras, National Indian and National Insurance in Calcutta, and the Co-operative Assurance at Lahore were established in 1906. In 1907, the Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance, and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912, India had no legislation to regulate the insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, of 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw a lot of growth in the insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over the insurance business. The demand for nationalization of the life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially, the management of the companies were taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reaching all insurable persons in the country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices, and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long-term contracts and during the currency of the policy, it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satellite offices, and the Corporate office. LIC’s Wide Area Network covers 113divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer online premium collection facilities in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from online Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune, and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner, and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of the life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.
» Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.
1912: The Indian Life Assurance Companies Act was enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act was enacted to enable the government to collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crores from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.
» Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act was amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India Insurance Company Ltd. GIC incorporated as a company.
LIC IPO Registrar
KFin Technologies Private Limited
Selenium, Tower B, Plot No- 31 and 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad 500 032, Telangana, India
Tel: +91 40 6716 2222
E-mail: lic.ipo@kfintech.com
Investor Grievance ID: einward.ris@kfintech.com
Website: www.kfintech.com
Contact Person: M Murli Krishna
SEBI Registration Number: INR000000221
Note: Check LIC IPO allotment status on KFintech website allotment URL. Click HereLIC IPO Lead Managers
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- BofA Securities India Limited
- Citigroup Global Markets India Private Limited
- Goldman Sachs (India) Securities Private Limited
- ICICI Securities Limited
- JM Financial Limited
- J.P. Morgan India Private Limited
- Nomura Financial Advisory and Securities (India) Private Limited
- SBI Capital Markets Limited
Company Address
Life Insurance Corporation of IndiaCentral office: Yogakshema, Jeevan Bima Marg,
Nariman Point, Mumbai 400 021,
Maharashtra, India
Contact Person: Pawan Agrawal
Company Secretary and Compliance Officer
Tel: +91 22 6659 8732
E-mail: Investors@licindia.com
Website: www.licindia.in
IRDAI Registration number: 512
LIC IPO FAQs
What is LIC IPO?
LIC IPO is a main-board IPO. They are going to raise ₹80000 to ₹100000 Crores via IPO. The issue is priced at ₹2000 to ₹2100 per equity share. The IPO is to be listed on BSE & NSE.
When LIC IPO will open?
The IPO is to open on 10 March 2022 for QIB, NII, and Retail Investors.
What is LIC IPO Investors Portion?
The investors' portion for QIB-50%, NII-15%, and Retail 35%.
How to Apply the LIC IPO?
You can apply LIC IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form.
How to Apply the LIC IPO through Zerodha?
Log in to Console in Zerodha Website or in Application. Go to Portfolio and Click on IPO. You will see the IPO Name "LIC". Click on Bid Button. Enter your UPI ID, Quantity and Price. Submit IPO Application Form. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Zerodha.
How to Apply the LIC IPO through Upstox?
Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name "LIC". Click on Bid Button. Confirm your application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox.
What is LIC IPO Size?
LIC IPO size is ₹80000 to ₹100000 crores.
What is LIC IPO Price Band?
LIC IPO Price Band is ₹2000 to ₹2100.
What is LIC IPO Minimum and Maximum Lot Size?
The minimum bid is 7 Shares with ₹14,700 amount while the maximum bid is 91 shares with ₹191,100.
What is the LIC IPO Allotment Date?
LIC IPO allotment date is 17 March 2022.
What is the LIC IPO Listing Date?
LIC IPO listing date is 21 March 2022. The IPO to list on BSE and NSE.
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