LIC IPO 2022 : Mega IPO of India and Its Highlights

LIC or Life Insurance Corporation of India is the biggest insurance company in India. It covers more than 65% of the entire insurance market in India. In September 2021 the AUM of the enterprise was noted to be at 39 Lakh Crore Rs. The company has 2048 branches, 1554 Satellite Offices and 113 divisional offices. The networking of the company is spread through its 13.5 Lakh LIC agents across India and many other countries. The company performs international business in Mauritius, Fiji, Nepal, Singapore, Bahrain, UAE, Sri Lanka, Kuwait, United Kingdom etc.

IPO DETAILS

Life Insurance Corporation of India IPO is set to launch on 4th May, 2022. The subscription timeline extends till 9th May, 2022. The size for the IPO is 21008.48 Crore Rs.. No Shares are  given through Fresh Issue mode. Shares issued through Offer for sale are worth Rs. 21008.48 Crore. The lot size is 15 shares and the price range is 902 Rs. – 949 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is KFin Technologies  Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	4th May, 2022
CLOSING DATE FOR IPO	9th May, 2022
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	902 Rs. – 949 Rs.
LOT SIZE	15 shares
MINIMUM ORDER QUANTITY	15 shares
ISSUE SIZE	21008.48 Crore Rs.
OFFER FOR SALE	21008.48 Crore Rs.
FRESH ISSUE	No Fresh Issue
LISTING AT	NSE, BSE
LISTING DATE	17th May, 2022

IMPORTANT DATES

IPO OPENING DATE	4th May, 2022
CLOSING DATE FOR IPO	9th May, 2022
IPO ALLOTMENT DATE	12th May, 2022
REFUNDS	13th May, 2022
DEMAT A/C CREDITED ON	16th May, 2022
IPO LISTING DATE	17th May, 2022

Life Insurance Corporation of India IPO begins for subscription from 4th May, 2022. The IPO subscription would continue till 9th May, 2022. The allotment status for the shareholders who applied would come on 12th May, 2022. The refunds for the ones who did not get allotment would be initiated on 13th May, 2022. The DEMAT accounts of shareholders would be credited on 16th May 2022. The listing of the company would be accompanied on 17th May, 2022.

Lead Managers And Promoters

The promoters of the company are the Government of India and the President of India (working through the Indian Ministry of Finance).

The lead managers are :

• BoFA Securities India Limited
• Kotak Mahindra Capital Company Limited
• Axis Capital Limited
• Citigroup Global Markets India Private Limited
• ICICI Securities Limited
• Goldman Sachs India Securities Private Limited
• Nomura Financial Advisory and Securities India Limited
• JM Financial Consultants Private Limited
• J.P. Morgan India Private Limited
• SBI Capital Markets Limited

The minimum lot size for the company is decided at 15 shares. This holding accounts to  14235 Rs.. The maximum lot size is decided at 210 shares. This amounts to 199290 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	15 shares	14235 Rs
Maximum	210 shares	199290 Rs.

OBJECTIVES FOR THE IPO

• The funds can be utilised for General corporate purposes.
• The company also plans to utilise the money for further business growth purposes.

COMPANY FINANCIALS

Particulars (in Million Rs.)	Dec. 2021	2020-21	2019-20
ASSETS	40907867	37464044	34141745
PAT	17153	29741	27104

The asset base of LIC is amazing. The company has more than 40907867 Million Rs of Assets in Dec 2021 which have been increasing at a steady pace of 3000000 Million Rs every year. The problem may be at the profit margin of the company. The company has been enratin just 0.07% as the profit margin as compared to its asset base. The ratio has been consistent over the years. However the roodt figures have been also increasing at a steady pace of 2000 Million Rs. 

PROS

• Huge asset base.
• The biggest insurance company of India covers almost 65% of the entire market.
• Networking is spread across 13.5 Lakh LIC Agents.
• The brand name of LIC is highly trusted.

CONS

• Huge IPO size can result in unfulfilled subscriptions.
• The profit ratio in comparison to the asset base is just 0.07%

Life Insurance Corporation of India IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Life Insurance Corporation of India IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.