LIC IPO:- Life Insurance Corporation IPO Analysis, IPO Review, Dates, Price Bands, Market Lot, LIC IPO Grey Market Price Details
In what might be one of India’s biggest initial public offerings (IPO), the government will offer a part of its stake in Life Insurance Corporation of India (LIC).
LIC is India’s largest insurer, cornering over 70 percent of the market share.
LIC is the largest investor in the nation’s growth, with over Rs 4 lakh crore in investments in key sectors of the economy.
Insurance Regulatory Development Authority of India (IRDAI) is the regulatory body for all the insurance companies in India including LIC but apart from IRDAI, the company is also governed by the LIC Act.
Listing of LIC will bring in greater transparency, public participation and also deepen the equity market.
LIC IPO Details:
Finance Minister Nirmala Sitharaman while presenting the Budget 2020-21 on Saturday announced stake sale in LIC through an initial public offer in the next fiscal.
Market participants are quite bullish about “LIC IPO” and said it could be “IPO of the decade” akin to the Saudi Aramco listing.
|Issuer||Life Insurance Corporation of India (LIC)|
|Issue Type||100% Book Built Issue IPO|
|Issue Period||Issue Opens: MAY – JUNE 2020|
|Issue Closes: MAY – JUNE 2020|
|Price Brand||Rs.- per Equity Share (Expected)|
|Issue Size||Rs.70000* Crores|
|Face Value||Rs.10 per Equity Share|
|Bit Lot||X Equity Shares and in multiples thereof|
|Maximum Bid amount for Retail||Rs. 2 Lakhs|
|QIB||50% of the issue size|
|NIB||15% of the issue size|
|Retail Individual Bidders||35% of the issue size|
|Employee Reservation||X Equity Shares (Rs. – Crs)|
|Employee Discount||Rs.- per Equity Share|
|Listing||NSE & BSE|
|LIC का IPO विवरण हिंदी में|
|Grey Market Price||LIC IPO Grey Market Premium|
|Upcoming IPO 2020||Upcoming NCD 2020|
Overview of Life Insurance Corporation of India
LIC of India is the largest financial institution in India could easily become the country’s top listed company if its shares get listed on the stock exchanges points the report. They will rank number one in market valuation, beating the current leaders such as Reliance Industries and Tata Consultancy Services.
At present, the total AUM is Rs 31.11 lakh crore, which is a rise of 9.38 percent on a YoY basis. LIC has also made huge investments in debentures and bonds totaling over Rs 4.34 lakh crore.
The insurer’s financials, as cited in the report, will ensure this premium valuation. On a capital base of Rs 5 crore, LIC last reported a valuation surplus, or profit, of Rs 48,436 crore for FY 2018 and assets under management of Rs 31.11 lakh crore.
LIC also has huge investments in debentures and bonds (Rs 434,959 crore), besides providing funding for many infrastructure projects (Rs 376,097 crore as of March 2018), according to its Annual Report for 2017-18, cited by the daily.
LIC’s reported profits were of Rs 23,621 crore from its equity investment during 2018-19, against Rs 25,646 crore during 2017-18. The insurer made a gross equity investment of Rs 68,621 crore during FY 2018-19 as per the report.
The market value of LIC’s investment has seen a growth of 8.61 percent year-on-year to Rs 28.74 lakh crore in FY19, against Rs 26.46 lakh crore in 2017-18. Moreover, the total assets of the corporation crossed the historic figure of Rs 30 lakh crore for the first time to Rs 31.11 lakh crore, a rise of 9.38 percent.
LIC’s total premium income according to the provisional accounts for 2018-19—new and renewal premiums together—was Rs 337,185 crore, indicating a growth of 6.08 percent, while the total benefits paid amounted to Rs 250,936 crore, growing by as much as 26.66 percent. The insurer had mobilized Rs 41,086.31 crore as a new premium in FY19 points daily.
The total income of LIC, which includes the total premium and investment income, was around Rs 560,784 crore in 2018-19, a rise of 7.10 percent, the report further elaborates.
|Best Apps to Invest in Mutual Funds||Best Stock Trading Apps 2020|
|Best Sites for Indian Stock Market||Best Books for Share Market|
Financials of LIC Of India
Putting the premium income and investment income together, the net total income stood at Rs 5.61 lakh crore in FY19 compared to Rs 2 lakh crore in FY09. Here, the premium income stood at Rs 3.37 lakh crore.
Despite the tough market conditions, the investment income rose from Rs 2.08 lakh crore a year ago.
Similarly, LIC’s rental income from the estate portfolio rose to Rs 388.18 crore in FY19 compared to Rs 341.43 crore a year ago. The life insurer said that this was 90.18 percent of the yearly target. Ten years ago in FY09, gross revenue from estates stood at Rs 193.21 crore.
Every year, the life insurer books a profit of Rs 18,000 crore to Rs 25,000 crore in equity profits alone. In FY19, LIC had an equity profit booking of around Rs 23,600 crore which was lower than the Rs 25,650 crore of the year ago.
In FY19, provisions for doubtful debt stood at Rs 3,439.3 crore (rise from Rs 2,744.5 crore in FY18) for participating portfolio while for non-participating (FY19) it stood at Rs 32.2 crore rising from Rs 2.37 crore in FY18.
LIC IPO Dates & Price Band:
|IPO Size:||Approx ₹70000 Crore (Approx)|
|Face Value:||₹10 Per Equity Share|
|Price Band:||₹ to ₹ Per Share|
|Listing on:||BSE & NSE|
LIC IPO Market Lot:
|Lot Size:||Minimum – Shares & Maximum – Shares|
LIC of India IPO Allotment & Listing:
|Basis of Allotment:||2020|
|Credit to Demat Account:||2020|
LIC IPO Grey Market Premium
LIC IPO Grey market premium as of today is ₹1000, Kostak ₹3000 & Subject to Sauda is ₹10000.
IPO grey market movements may change very quickly and rates may be volatile. It is risky to base an investment decision on gray market IPO rates.
LIC of India IPO Review & Ratings
|LIC IPO Ratings & Review|
|Top Brokers Review||9/10|
How to Apply for LIC IPO?
If you have a Demat account, most banks offer the online IPO application facility called “ASBA”. You can also contact the broker to apply for in LIC IPO?
Most banks including the SBI bank, ICICI Bank, Axis, and Kotak bank allow the customer to apply in IPO using the Demat account.
- How to Apply LIC IPO Online through ASBA?
- How to Apply LIC IPO through Zerodha KITE Using UPI?
- How to Apply LIC IPO through SBI Net Banking?
- How to Apply LIC IPO through HDFC Netbanking?
|Best Discount Broker in India?||How to Invest in Share Market?|
|Mutual Funds Basics||What is a Fixed Deposit?|
Life Insurance Corporation of India –
Corporate Office: Yogakshema Building,
Jeevan Bima Marg, P.O. Box No – 19953,
Mumbai – 400 021 IRDAI Reg No- 512
I hope that the above information about LIC IPO (Life Insurance Corporation IPO) has been of great use. If you find the above information useful please share it with others via Facebook and Twitter. You can read more investment researched articles on our website investor’s academy.
Drop your comment, queries or feedback in the given below comment box. We would love to hear from you. Thanks and have a nice day.
LIC IPO FAQs:
Life Insurance Corporation Of India (LIC) – The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer,” said finance minister Nirmala Sitharaman in her budget speech.
LIC’s maybe the mother of all IPOs in India.
Listing of insurance behemoth Life Insurance Corporation (LIC) may be done in the second half of the next financial year 2020-21.
Eligible Employees can bid under all 3 categories of LIC IPO:
Retail Category (< ₹2L)
The amount of the bid should not exceed ₹200,000 in shareholder and retail categories.
If you are a LIC employee, you can apply in LIC IPO using 3 applications, one each in RII, Shareholder and Employee category.
LIC of India IPO application can be done through banks using ASBA online or through stock brokers trading account using UPI. All popular banks i.e. HDFC, ICICI, and SBI offer online IPO applications.
An investor can also apply directly through their broker (i.e. Zerodha, Sharekhan) using UPI as a payment method.
The finalization of the Basis of Allotment for LIC IPO will be done on [?], and the allotted shares will be credited to your Demat account by [?]. Check the LIC IPO allotment status.
The LIC IPO listing date is not yet announced. The tentative date of the Lic of India IPO listing is coming soon.
LIC IPO lot size and the minimum order quantity is not available at this time. Please check again later.
LIC IPO price for retail investors is coming soon.
Yes, you can invest in LIC IPO via UPI. If applying online you can use UPI as well as ASBA any one process, if applying in physical form UPI is mandatory.
LIC IPO expected date between August to September 2020. This is Tentative dates, which can be changed in the future.