Life Insurance Corp.of India IPO
IPO Timeline
Category-wise Subscription
| Category | Sub (x) | Offered | Bid For | Amt (Cr)* |
|---|---|---|---|---|
| QIB | — | 98,828,089 (45%) | — | ₹937,879 Cr |
| NII (HNI) | — | 29,648,427 (13%) | — | ₹281,364 Cr |
| Retail | — | 69,179,663 (31%) | — | ₹656,515 Cr |
| Employee | — | 1,581,249 (1%) | — | ₹1,501 Cr |
| Σ Total | — | 221,374,920 (100%) | — | ₹21,008,480 Cr |
Only available investor categories are shown. Amount is auto-calculated when shares offered and issue price are available.
Issue Details
Minimum Investment (Lot-wise)
| Category | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 1 | 15 | ₹14,235 |
| Retail (Max) | 13 | 195 | ₹185,055 |
| S-HNI (Min) | 14 | 210 | ₹199,290 |
| B-HNI (Min) | 67 | 1,005 | ₹953,745 |
Financial Statements Amount in Crore
| Metric | 31-Dec-21 | 31-Mar-21 | 31-Mar-20 |
|---|---|---|---|
| Profit After Tax | 1,715 | 2,974 | 2,710 |
| Total Assets | 4,090,787 | 3,746,404 | 3,414,175 |
Valuation & Key Ratios
Grey Market Premium (GMP)
GMP is an unofficial grey market indicator and does not guarantee actual listing price. Invest at your own risk.
Objects of the Issue
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Company Overview
LIC is the largest insurance provider company in India. It has a market share of above 66.2% in new business premium. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.
As of 30 Sep 2021, it has a total AUM of Rs. 39 lakh crore. LIC operates through 2048 branches, 113 divisional offices, and 1,554 Satellite Offices. It operates globally in Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, UAE, Bahrain, Qatar, Kuwait, and the United Kingdom.
Key positive factors
- LIC is a part insurance and part investment products company. Their plans are a combination of insurance and investment with a guaranteed return.
- LIC has over 13.5 lakh agents who play brings most of the new business. LIC plans offer 'fixed returns' along with life insurance coverage. This makes it easy to sell by agents and brings peace of mind to the insurers.
- LIC has high trust in the public for both life insurance as well as investment done with them. LIC is synonymous with insurance in India.
- LIC manage asset of Rs 39 lakh crores. That is more money than the entire mutual fund industry combined. They invest these funds across stocks and bonds. They own 4% of all listed stocks in India and more government bonds than the RBI.
- Leading insurance provider company in India and fifth largest global insurer by GWP.
- A range of life insurance products to meet varied insurance needs of individuals.
Key challenges
- LIC has poor new policy growth as they continue losing market share to private insurance players, especially in urban areas.
- The margin in insurance + investment products is low.
- It's very difficult to value LIC as the business model is unlike any other company. LIC collects money upfront and then promises to compensate policyholders at a later stage. The premiums they collect (part insurance and part investment) cannot be recognized as revenue.