LIC IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP
Last Updated Date: Nov 17, 2022Let’s have a comprehensive study on the upcoming IPO by Life Insurance Corporation (LIC), the biggest IPO in India. Investors are observing every move with their eyes peeled.
Hence, it is accustomed to staying updated with every most recent progress made in the IPO proceedings. Though, the investors are already keen for investment in the corporation for the underlying reasons of the credibility offered by LIC.
Standing for decades, the statutory corporation held wholly by Government is all set to open the doors for the general public and the public is also waiting with a warm welcome.
Amidst COVID-19 and other adverse factors, the IPO is a refreshing step for the investors, corporations, and the economy at large. So, continue reading.
| Face Value | Rs 10 |
| Price Band | Rs.902 to Rs.949 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 15 Shares |
| Listing Date | May 17, 2022 |
| Offer for Sale | Not Disclosed |
| Fresh Issue | Not Disclosed |
| IPO Size | Rs. 21,008.48 Crores |
| Tick Size | 1 |
LIC IPO Overview
The statutory corporation established by an act of Parliament, Life Insurance Corporation Act, 1956 is finally after a long wait its offering its shares publicly with its IPO and has already been considered as the biggest IPO of India.
Be aware of every prospect, every detail, and every change that is taking place in regards to the LIC IPO. From its astonishing history to its forthcoming tomorrow, each detail is materialistic.
So, let’s unfold all the folds held in the LIC IPO.
LIC IPO Important Dates
| Events | Date |
| IPO Opening Date | May 4, 2022 |
| IPO Closing Date | May 9, 2022 |
| Basis of Allotment Finalization | May 12, 2022 |
| Refunds Initiation | May 13, 2022 |
| Credit of Shares to Demat Account | May 16, 2022 |
| Share Listing Date | May 17, 2022 |
The LIC IPO is all set to be floored on 4th May 2022. The investors will be able to place their bids till 9th May 2022.
Finance Minister of India, Nirmala Sitharaman is closely monitoring the process.
The corporation proposed the Initial Public Offering in the budget and has been making all preliminary preparations. Investors are having high hopes from the IPO.
The IPO will be open for subscription from 4th May to 9th May. The basis of allotment will be determined on 12th May and subsequently the shares will be credited in Demat accounts on 16th May.
LIC IPO Price, Size, Share Offerings
| Face Value | Rs.10 |
| Price Band | Rs.902 – Rs.949 |
| Offer for Sale | Not Disclosed |
| Fresh Issue | Not Disclosed |
| IPO Size | Rs. 21,008.48 Crores |
With the upcoming IPO, Life Insurance Corporation (LIC) is expecting to raise Rs. 80,000 to 1,00,000 crores.
Every type of investor is eyeing on the IPO. The government has proposed the IPO to attain its goal of disinvestment for the year 2021. Around 3.5% of the corporation’s stakes will be offered to the public and post issue, Government will continue to hold the majority shares.
The price band is Rs.902 – Rs.949 and the corporation is offering 22,13,74,920 equity shares.
LIC IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 17th May 2022 | Rs.+-12 | Rs.NA | Rs.NA |
| 16th May 2022 | Rs.+-12 | Rs.NA | Rs.NA |
| 13th May 2022 | Rs.+-10 | Rs.NA | Rs.NA |
| 12th May 2022 | Rs.+-10 | Rs.NA | Rs.NA |
| 11th May 2022 | Rs.+-10 | Rs.NA | Rs.NA |
| 10th May 2022 | Rs.30 | Rs.NA | Rs.NA |
| 9th May 2022 | Rs.40 | Rs.800 | Rs.2000 |
| 7th May 2022 | Rs.60 | Rs.900 | Rs.2000 |
| 6th May 2022 | Rs.50 | Rs.1000 | Rs.1500 |
| 5th May 2022 | Rs.65 | Rs.1000 | Rs.1500 |
| 4th May 2022 | Rs.85 | Rs.1500 | Rs.2000 |
| 3rd May 2022 | Rs.85 | Rs.1500 | Rs.2000 |
| 2nd May 2022 | Rs.85 | Rs.1500 | Rs.2000 |
| 30th April 2022 | Rs.90 | Rs.1500 | Rs.2000 |
| 29th April 2022 | Rs.75 | Rs.1000 | Rs.1500 |
| 28th April 2022 | Rs.45 | Rs.800 | Rs.1100 |
| 27th April 2022 | Rs.25 | Rs.500 | Rs.1000 |
| 26th April 2022 | Rs.25 | Rs.400 | NA |
| 25th April 2022 | Rs.15 | NA | NA |
| 23rd April 2022 | Rs.15 | NA | NA |
| 21st April 2022 | NA | NA | NA |
| 20th April 2022 | NA | NA | NA |
| 19th April 2022 | NA | NA | NA |
| 18th April 2022 | NA | NA | NA |
| 15th April 2022 | NA | NA | NA |
| 14th April 2022 | NA | NA | NA |
| 13th April 2022 | NA | NA | NA |
| 12th April 2022 | NA | NA | NA |
| 29th March 2022 | (-Rs.35) | NA | NA |
| 28th March 2022 | (-Rs.35) | NA | NA |
| 25th March 2022 | (-Rs.55) | NA | NA |
| 24th March 2022 | (-Rs.55) | NA | NA |
| 23rd March 2022 | (-Rs.55) | NA | NA |
| 22nd March 2022 | (-Rs.55) | NA | NA |
| 21st March 2022 | (-Rs.55) | NA | NA |
Grey market is the market where the stocks are traded unofficially. It is not illegal but since the market is unofficial, there exist no rules and regulations and is not regulated by the regulators.
Grey Market Premium is the price at which stocks are traded in the Grey Market. Grey market is also seen as a yardstick to foresee the performance of the stock after it will be listed on the mainboard.
LIC IPO has already stirred a buzz in the market therefore LIC IPO GMP can be expected to be high. All the information will be made available expeditiously.
LIC IPO Subscription Status
| Day / Date | QIB | NII | RII | EMP | Policyholder |
Total Subscription |
| 1st Day – 4th May | 0.33x | 0.27x | 0.60x | 1.17x | 1.99x | 0.67x |
| 2nd Day – 5th May | 0.40x | 0.47x | 0.93x | 2.22x | 3.11x | 1.03x |
| 3rd Day – 6th May | 0.56x | 0.76x | 1.23x | 3.06x | 4.01x | 1.38x |
| 4th Day – 7th May | 0.67x | 1.08x | 1.46x | 3.54x | 4.67x | 1.66x |
| 5th Day – 8th May |
0.67x | 1.24x | 1.59x | 3.79x | 5.04x | 1.79x |
| 6th Day – 9th May | 2.83x | 2.91x | 1.99x | 4.40x | 6.12x | 2.95x |
| Shares Offered or Net Issue | 39,531,236 | 29,648,427 | 69,179,663 | 1,581,249 | 22,137,492 | 162,078,067 |
LIC IPO Subscription will start from 4th of May. The company has filed Red Herring Prospectus (RHP).
Investors can bid for the IPO ASBA process or through UPI (available for retail investors only). The lot size for the IPO is 15 shares. As a retail investor, you can apply for upto 14 lots.
The Lead Managers of the issue are:
- Kotak Mahindra Capital Company Limited
- Morgan Stanley India Company Private Limited
- BofA Securities India Limited
- Citigroup Global Markets India Private Limited
LIC IPO Allotment Status
The LIC IPO Allotment will be determined on May 12, 2022.
LIC IPO Live Performance
Keen to know the LIC IPO Performance, click on the given below link and get all the important information regarding LIC Share Price, , its trading and its performance.
Subscribe to LIC IPO – Open Free Demat Account Now!
Latest LIC IPO News
Statutory Corporation wholly owned by the Ministry of Finance, Government of India is now preparing for disinvestment and opening door for retail investors to invest in the Insurance Corporation.
3.50% of the total stakes will be offered to the general public and the Government will continue holding the majority.
The IPO is going to open on 4th May and will remain open till 9th May. The Price band of the IPO is Rs. 902 – 949. And discount will be provided for the eligible employees and plicyholders.
LIC – Company Review
LIC, a name we all have come across at some point and we all are very familiar with this corporation. A trustworthy entity people rely on. LIC embarked on its presence ever since the evolution of mankind. LIC not only serves as an insurance corporation but also has widened by providing attractive means to optimize their customers’ savings.
Also, LIC strives at offering its wide range of services in a very accessible and inexpensive manner such that it can be easily availed by every individual. They aim to appraise individuals & spread the importance of insurance and impact lives.
The headquarters of LIC is located in Mumbai, India. LIC was established by the Life Insurance Corporation Act, 1956 with the objective of nationalizing the business of life insurance and transferring all the business in this respect to a corporation. It is currently under the ownership of Ministry of Finance, Government as a Public Sector Undertaking.
Products or Services
LIC offers a varied range of products like Life Insurance, Health Insurance, Investment Management and Mutual Fund.
The objective of the corporation is to spread awareness among people about insurance and its relative significance specifically in the rural areas. In 1956, with Life Insurance Corporation Act, about 245 entities offering life insurance and other related facilities were consolidated for the purpose.
Promoters and Holding
The founders of the Gurugram based company, LIC are Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati.
The company is professionally managed and does not have any identifiable promoters. The management of LIC comprises of the following:
- Deepak Kapoor (Chairman)
- Sahil Barua (CEO)
- Ajith Pai (COO)
- Kapil Bharati (CTO)
- Sandeep Barasia (CBO)
Is LIC good for Investment?
LIC IPO has already created a buzz in the market ever since the IPO was proposed in the Budget.
Presently, the company has a strong diverse base of around 21,342 customers.
To expand its operations, LIC acquired the B2B logistics company, Spoton Logistics and in further pursuance, in December 2021, it made another acquisition of Transition Robotics Inc. which is a California-based unmannered aircraft system company.
The company is progressively making development in respect of infrastructure, technology, and expansion.
LIC Financial Statements
| Amount (in INR & Million) | ||||
| 31-Dec-21 | 31-Mar-21 | 31-Mar-20 | Mar-19 | |
| Assets | 40,907,867.78 | 37,464,044.68 | 34,141,745.74 | 33,663,346.17 |
| Revenue | 17,573.49 | 29,855.71 | 27,309.56 | 26,449.96 |
| Expense | 3.82 | 52.24 | 124.40 | 26.31 |
| Profit After Tax | 17,153.12 | 29,741.39 | 27,104.78 | 26,273.78 |
The Statutory Corporation established by the LIC Act 1956 has total life funds of Rs.28.3 trillion in the year 2019. The corporation has been valuated at a whopping sum of USD 150 billion. Alongside LIC has 1.2 million agents sales channel, more than 100,000 employees and Rs 37,000 crore profit from equity investments as per the financial year 2021.
The total value of sold policies as reported for the year 2018-19 was Rs. 21.4 million and had more than 290 million policyholders in the same year.
As on 30th June 2021, the total assets of the corporation were 65,821.92 million.
And now with the LIC IPO, the entity will be raising funds from the public for the purpose of disinvestment, privatization and growth.
| Earnings per Equity Share (in Million) | ||||
| 31-Dec-21 | 31-Mar-21 | 31-Mar-20 | Mar-19 | |
| Basic & Diluted | 2.71 | 4.70 | 4.29 | 4.15 |
LIC has maintained a positive EPS over the years. The Earning per share of LIC as on 31st Dec 2021 was 2.71. And earlier to that, for the financial year 2020-21, the EPS was 4.70. LIC is a significantly important entity whose aim is to make people conscious of insurance especially in the rural areas.
LIC IPO Review
Investors and institutions are observing every process at every step of the LIC IPO closely and have pinned high hopes. The IPO is going to be the biggest IPO of India.
The corporation happens to play an integral part in the GDP and the Indian Economy.
The IPO will help government achieve their target of disinvestment for the year 2020-21. It is likely to uplift the market and boon the economy. As per one of the reports, the expected price band of the LIC IPO shall be between Rs. 902 to Rs. 949.
LIC IPO Details
Here are few more details you need to know before investing in LIC IPO –
LIC IPO Issue Object
Some of the objectives of the Largest IPO of India are:
1. Neo-liberalism
2. Privatization and allowing general public to hold stakes
3. Achieve targeted disinvestment of 10% for the financial year 2020-21
3. Fulfill the Working capital requirements
LIC IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Rapid growth, extensive scale, and improvement in unit economics
- Their proprietary logistics operating system
- Vast data intelligence capabilities
- Their network design and engineering
- Their integrated portfolio of logistics services
- Strong relationships with a diverse customer base
- Extensive ecosystem of partners, enabling an asset-light business model and extended reach
- Highly qualified professional team
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-21 | 4.70 | -14.66 | 54.79 |
| 31-Mar-20 | 4.29 | -8.48 | – |
| Mar-19 | 4.15 | -52.63 | – |
LIC IPO Lead Managers
Here are the list of Lead managers –
- Kotak Mahindra Capital Company Limited
- Morgan Stanley India Company Private Limited
- BofA Securities India Limited
- Citigroup Global Markets India Private Limited
LIC IPO Registrar to offer
Check out the details of registrar here –
Link Intime India Private Limited
Address – C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India
Tel: +91 22 4918 6200
E-mail: LIC.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor grievance E-mail: LIC.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
LIC IPO – Other Details
- Statutory Auditor – S.R. Batliboi & Associates LLP
- Legal Counsel to the Company – Shardul Amarchand Mangaldas & Co
- Bankers to the Company – HDFC Bank Limited, Axis Bank Limited, IndusInd Bank Limited, ICICI Bank Limited, State Bank of India, and Kotak Mahindra Bank Limited
LIC IPO Verdict by Stock Brokers
Review by Angel One: While LIC may have achieved unicorn status, it is still a loss-making entity.
However, it remains to be seen how this company will perform on the bourses, given that several new rules have been implemented.
LIC IPO – Conclusion
LIC is the only government entity offering insurance facilities and is the most trusted. Even after the IPO, the government will hold the majority of LIC.
LIC IPO is expected to have a turnaround impact on the market promoting growth and development. As per the reports, the LIC IPO will observe an oversubscription of a high quantum.
The investors and policyholders are likely to be benefited with the listing since, after the listing, the insurance corporation will be regulated by SEBI regulations leading to more transparency and efficiency. The IPO is of great significance for the economy as a whole.
After facing all the setbacks due to COVID-19, the IPO will possibly make an uplifting impact. The IPO is a favorable opportunity to invest their savings.
To Subscribe to LIC IPO – Open Demat Account Now!
LIC IPO Review FAQs
Check out the FAQs on LIC IPO –
What is the Issue Size of LIC IPO?
The Company is making an initial public offer of 221,374,920 equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of LIC IPO?
The price band for this particular IPO ranges between Rs.902 – Rs.949. As far as the face value of the share is of concern, it is Rs.10 per share.
What is the LIC IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on May 4, 2022, while the closing date is set at May 9, 2022.
What is the LIC IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on May 12, 2022, refund initiation is on May 13, 2022, credit of shares is on May 16, 2022, and share listing date is on May 17, 2022.
What is the LIC IPO Listing Date?
Shares of this company shall be listed in the exchanges May 17, 2022. The date, when the listing would be done, is stagnant on May 17, 2022.
Who is the Registrar of LIC IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of LIC IPO?
Here are the promoters of this IPO – PROFESSIONALLY MANAGED. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of LIC IPO?
They have obtained the GMP of this IPO and it is Rs.+-12. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is LIC IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of LIC Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2021 in Million is 29,741.39, 2020 is 27,104.78, 2019 is 26,273.78. PAT from Dec 2021 is 17,153.12.
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