| Issue Type | Issue Size | Open Date | Close Date | Min Investment | Lot Size | Price Range |
| Book Built – IPO | 3.5% of the company | May 4 | May 9 | ₹ 13,530 | 15 Shares in lot | ₹902 – ₹949 |
NOTE: The data mentioned is as per the RHP filed by LIC with SEBI and the statements by the LIC officials at the press conference on Apr 27, 2022.
The name LIC (Life Insurance Corporation of India) is known to almost everybody in the country. In many ways, LIC brings back memories for many generations, and people still remember the tagline “Zindagi Ke Sath Bhi, Zindagi Ke Baad Bhi.”
LIC has been serving Indians for more than 60 years and has earned the unwavering confidence of the nation. You might be living under the rock if you or any of your family members have not taken a LIC policy because there is always a neighbor who is a LIC agent.
LIC has been the largest insurance provider in India, and it will shortly launch an Initial Public Offering (IPO), which is expected to be the largest in recent times. With all the hype happening around, let’s take a look at LIC as an organization and what it has to offer!!
Content:
- LIC IPO- About Life Insurance Corporation of India
- LIC IPO Details/Size
- LIC IPO Price
- LIC IPO Date 2022
- How to Invest in LIC IPO?
- What Factors Should You Consider Before Investing in LIC IPO?
- FAQs
LIC IPO – About Life Insurance Corporation of India
The LIC of India was formed on September 1, 1956, by the Insurance Act of 1956, by amalgamating 245 small insurance companies. Over the years, LIC has grown to a team of roughly 1.2 Lakh employees and around 12 Lakh agents on the ground with 8 Zonal Offices, 113 Divisional Offices, 2048 Branch Offices, 73 Customer Zones, 1401 Satellite Offices, and 1240 Mini Offices across India.
LIC has the biggest market share of nearly 70% in the insurance industry and offers tons of investment options such as Endowment Plans, Pension Funds, Whole Life Plans, Money Back Plans, Mutual Funds, etc. No wonder it is still the first choice of investment for more than 30 Crore investors in India.
The Government of India majorly owns LIC under the Ministry of Finance. With that being said, in the budget for FY 21-22, the Indian Finance Minister, Mrs. Nirmala Sitharaman, indicated that the LIC would launch an IPO to meet the government’s ambitious goal of disinvesting Rs 1.75 trillion in FY 21-22.
LIC IPO Details/Size
According to the RHP submitted by LIC on April 27, 2022, it is clear that LIC is offering its 3.5% stake, with the Face Value of each share fixed at ₹10. Government is all set to raise around ₹21,000 Crores with LIC IPO. This also makes it the biggest IPO launch in the Indian stock market.
Going deep into the DRHP, we found that 5% of the LIC IPO Issue will be reserved for the LIC employees, and 10% will be reserved for the existing policyholders. There was also a mention that the RIBs or Retail Individual bidders would be allotted around 35% of the IPO issue size, and up to 60% would be allotted to the QIBs or Qualified Institutional Buyers.
LIC IPO Price
It has been announced that the price range of LIP shares will be around ₹902 – ₹949 per share, with a discount of ₹60 for policyholders and ₹45 for employees and retail investors.
The LIC IPO lot size has been fixed at 15 shares per lot. Being a retail investor you may apply for up to 14 lots or 210 shares. These statements were made by the LIC officials at the press conference on Apr 27, 2022.
LIC IPO Date 2022
The LIC IPO will be opened from May 2 for anchor investors and from May 4 to May 9 for retail investors. The allotment of shares is scheduled to be done by May 12, and the shares will be credited to Demat accounts by May 16, as the LIC is set to make a debut on the stock market on May 17, 2022.
Keep track of the LIC IPO News Here and be the first one to place your bids after thorough research and analysis.
Now that the LIC IPO date and price have come out officially, it’s best you be prepared for the LIC IPO application process. Read below to know the procedure in detail.
How to Invest in LIC IPO?
Investing in LIC IPO is made simple through Alice Blue. Follow these easy steps to start your investment.
- Step 1: Open a Demat account with Alice Blue in just 15 minutes. Already have an account?? Then just simply log in to Alice IPO.
- Step 2: Choose the LIC IPO and place your bid via UPI.
- Step 3: Once the bid is placed via UPI, the UPI App will block funds in your Bank account proportional to the bid (Till the allotment date). If the shares are allotted to you, the money will be debited from your account; if not, the money will be unblocked.
Excited to know how bidding and allotment shares are done? Read about it here.
What Factors Should You Consider Before Investing in LIC IPO?
This is probably the most crucial part to look after. In order to make the most out of your investment, you need to consider the following factors.
- Try to read and understand the business of the company in the Draft Red Herring Prospectus (DRHP). You can find the DRHP here. In the RHP, you can also:
- Do background research and check the past records of the company.
- Analyze the financial data and assess the company’s valuation.
- Compare the company with its competitors.
- Understand the risk involved in the process.
- Have a clear idea about the investment goal you want to achieve.
IPOs offer you an excellent opportunity to make a good amount of money in a short span of time. In the previous few months, three of the Dalal Street debutants have given more than 50% returns on their listing day – Zomato (65.59%), GR Infra (108.7%) & Clean Science (76.13%).
ALERT: LIC has reserved 5% of the IPO Size for its employees and 10% for its policyholders.
That increases your probability of getting the allotment to an extent, so why miss out on the opportunity?
Be investment-ready! Open your account with Alice Blue Today!
LIC IPO FAQs
1. What is LIC IPO?
The Indian Government has given a chance to the general public to be a part of LIC’s ownership.
LIC is giving away a 3.5% stake of the company for the QIBs, RIIs, and NIIs. Not more than 5% of the issue has been reserved for the LIC Employees and 10% has been reserved for its policyholders.
2. What is the LIC IPO Launch Date?
The LIC IPO will be opened from May 2 for anchor investors and from May 4 to May 9 for retail investors. The allotment of shares is scheduled to be done by May 12, and the shares will be credited to Demat accounts by May 16, as the LIC is set to make a debut on the stock market on May 17, 2022.
3. How will existing policyholders be affected by the LIC IPO?
LIC would reserve 10% of the LIC IPO for its policyholders and 5% for its employees, giving them a more transparent form of investment.
4. What is the LIC IPO Share Price?
The LIC IPO Size is a 3.5% Stake in the LIC for roughly ₹21,000 Crores. It has been announced that the price range of LIP shares will be around ₹902 – ₹949 per share, with a discount of ₹60 for policyholders and ₹45 for employees and retail investors.
5. How to buy LIC IPO?
If you already have a Demat Account with Alice Blue, then simply login to Alice IPO. If not, Create a New Demat Account in Just 15 mins.
Once you create a Demat Account-
STEP 1 – Login to Alice IPO
STEP 2 – Choose LIC IPO and place your bid.
STEP 3 – Once the bid is placed via UPI, the UPI App will block funds in your Bank account proportional to the bid (Till the allotment date). If the shares are allotted to you, the money will be debited from your account, if not the money will be unblocked.
