LIC IPO
LIC has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its mega initial public offering (IPO) on 13 february 22. LIC IPO is expected to open for anchor investors on March 11 and a couple of days later for other investors. The exact date of launching is yet to be disclosed. However, we will update all the information once the details are revealed by them.
About LIC
LIC was formed by merging and nationalizing 245 private life insurance companies in India on September 1, 1956.LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in India, with a 64.1% market share in terms of premiums (or GWP), a 66.2% market share in terms of New Business Premium(or NBP), a 74.6% market share in terms of number of individual policies issued, a 81.1% market share in terms of number of group policies issued for Fiscal 2021, as well as by the number of individual agents, which comprised 55% of all individual agents in India as at March 31, 2021.
As of September 30, 2021, Corporation’s individual product portfolio in India comprised 32 individual products, 17 participating products and 15 non-participating products and seven individual riders.
Don't miss the chance to apply for the LIC IPO.
LIC IPO will open on May 4th.
Activate your dormant account in Swastika and apply for the IPO.
OR
LIC IPO Details
| IPO Opening Date | May 4, 2022 |
|---|---|
| IPO Closing Date | May 9, 2022 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per equity share |
| IPO Price | ₹902 to ₹949 per equity share |
| Market Lot | 15 Shares |
| Min Order Quantity | 15 Shares |
| Listing At | BSE, NSE |
| Issue Size | 221,374,920 Eq Shares of ₹10 (aggregating up to ₹21,008.48 Cr) |
| Offer for Sale | 221,374,920 Eq Shares of ₹10 (aggregating up to ₹[.] Cr) |
| Retail Discount | Rs 45 per share |
| Employee Discount | Rs 45 per share |
| QIB Shares Offered | Not more than 50% of the Net Offer |
| Retail Shares Offered | Not less than 35% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Net Offer |
LIC IPO Tentative Timetable
| IPO Opening Date | May 4, 2022 |
|---|---|
| IPO Closing Date | May 9, 2022 |
| Basis of Allotment | May 12, 2022 |
| Initiation of Refunds | May 13, 2022 |
| Credit of Shares to Demat | May 16, 2022 |
| IPO Listing Date | May 17, 2022 |
LIC IPO Lot Size
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 15 | ₹14,235 |
| Maximum | 14 | 210 | ₹199,290 |
A Quick Tour of LIC’s Financial Performance in FY 21
| Particulars | For the year/period ended (₹ in Millions) | ||||
|---|---|---|---|---|---|
| 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 40,434,596.70 | 37,464,044.68 | 34,141,745.74 | 33,663,346.17 | |
| Total Revenue | 15,197.24 | 29,855.71 | 27,309.56 | 26,449.96 | |
| Profit After Tax | 15,040.13 | 29,741.39 | 27,104.78 | 26,273.78 | |
LIC IPO Size
As per the DRHP, up to 31,62,49,885 (31.62 crore) equity shares will be on offer through the offer for sale (OFS), representing 5 percent of equity stake. There will be no fresh issue of shares.
Investees of LIC
| Stock | Quantity Held | Holding % |
|---|---|---|
| ABB Power Products And Systems India Limited | 1,881,348 | 4.44% |
| ABB India Limited | 8,376,287 | 3.95% |
| Aditya Birla Capital Limited | 51,407,882 | 2.13% |
| Aban Offshore Ltd | 1,000,000 | 1.71% |
| Bank of Baroda | 248,334,291 | 4.80% |
| Biocon Ltd | 49,374,988 | 4.11% |
| BEML Limited | 515,435 | 1.24% |
| Canara Bank | 1,33,627,205 | 8.11% |
| PTC India Ltd | 17,654,072 | 5.96% |
| Indian Overseas Bank | 228,087,493 | 1.21% |
| Reliance Infrastructure Ltd | 6,989,930 | 2.68% |
| Hindustan Zinc Limited | 96,246,636 | 2.28% |
| Titan Company Ltd | 35,163,104 | 3.96% |
IPO Quota
50% of the quota is reserved for qualified institutional buyers, while non-institutional buyers will have 15% of the quota allocated for them.The retail portion has been fixed for the 35% of the offer. 5% offers are reserved for the employees.10% offer reserved for policyholders.
LIC IPO: A Big Deal
It is the largest asset manager in India as of September 30, 2021, with AUM of ₹39,558,929.24 million on a standalone basis, which was more than 3.3 times the total AUM of all private life insurers in India. It has more than 1.1 times the entire Indian mutual fund industry’s AUM and 18.5% of India’s annualised GDP for Fiscal 2022.LIC has 66% market share in New Business Premiums with 283 mn policies and 1.35 mn agents as of 31st March 21.LIC's embedded value stood at Rs 5,39,686 crore as of September 30, 2021.The net premium collected by LIC is three times more than the previous top issuers: SBI Life, ICICI Prudential, and HDFC life.
LIC IPO Swastika
Swastika is an India based financial service company that provides complete financial services including stock trading, trading in currency, IPO launching, depositories portfolio management, Investment advisory services, fundamental research-based advice for IPO, Mutual funds and insurance.
The company is also involved in other works such as hire purchase, and lease financing. The other services Swastika provides are Investment banking solutions for big businesses. This includes IPO launching, planning and execution, merchant banking, private equity and advisory services.
Swastika’s Recommendation for LIC IPO
Swastika hasn’t given any recommendations yet.
How to Apply for LIC IPO with Swastika
If you are eagerly waiting for the LIC IPO and want to invest in it, Swastika offers several benefits for the investors such as safety features, key conveniences and more. Below are the ways through which investors can apply for LIC IPO with Swastika
1. Swastika’s Online Web Portal
Watch to know how to apply for LIC IPO: https://youtu.be/418AxGoJvMc
The foremost step investors do is either they can log in to Swastika’s trading web portal Justrade web or they can download the app available on Android and IOS.
IPO APPLYING PROCESS
STEP I. MOBILE APPLICATION
- Tap on three lines in the top left corner
- Select IPO from the menu baar
- Select IPO which you have to apply,
- Tick on apply at cutoff , select lot size as per your requirement,
- Click on proceed and select UPI ID
- Fill your UPI ID ,Tick on terms and conditions
- Click on review order.
- After submit request client will get a Mandate request in his UPI mobile application
- select their accept option or submit that.
STEP II. Through our website
- For applying as Existing Client
- Enter Client code or mobile no
- Enter OTP and submit
- Select IPO from the menu baar
- Select IPO which you have to apply,
- Tick on apply at cutoff , select lot size as per your requirement,
- Click on proceed and select UPI ID
- Fill your UPI ID ,Tick on terms and conditions
- Click on review order.
- After submit request client will get a Mandate request in his UPI mobile application
- select their accept option or submit that.
- After successfully logged in, investors are required to enter the lot size and desired price. Once done, click the submit button and you are ready to place the order.
2. Visit a Swastika’s Branch
If investors want to do transactions offline, they are suggested to visit the nearest Swastika’s branch. More than 1500 branches are available in the country.
Customers who visit Swastika’s branch should carry the necessary documents such as bank account details, Demat account information, PAN Number. Once the application process gets complete, customers are notified and after that, they can go for the other process.
To get a detailed insight into LIC IPO, visit Swastika’s nearest branch or simply search the Swastika branch near me on the internet. Contact us to learn more.
Account Opening:
If you don’t have an account withSwastika, you can open online by https://kyc.swastika.co.in/customer/login
You can sign up using your mobile number on our website :https://swastika.co.in/
You can contact our helpdesk team: 0120 4400789
How to Link your PAN with your LIC Policy?
Watch to know How to Link your PAN with your LIC Policy: https://youtu.be/7hQ9dzcO6q4
The last date to link PAN with your policy was 28 February 22.
Steps to Check PAN-LIC Status
Step1: Visit https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
Step2: Enter Policy Number, Date of Birth and PAN information and Captcha. Click on the submit button.
FAQ’s - LIC IPO
One can buy shares once they get listed on exchanges. LIC is about launch its IPO and post the subscription dates, once LIC gets listed, you can buy its shares through any broking platform.
Though you can still apply for the IPO through your broker’s platform.
The LIC IPO listing date will be decided by the board of directors of LIC. It is expected that the company will complete the IPO process and the listing by March 31, 2022.
No. Currently LIC has not launched its IPO. After the IPO, it will get listed on NSE and BSE.
LIC IPO is expected to open for subscription on March 11, 2022. Dates are yet to be announced officially.
You should be able to apply for the LIC IPO after the IPO commencement date. You can apply online through a brokerage platform like Swastika.
- One needs to have a valid Demat account. If you don’t have a DEMAT account feel free to open one with Swastika here: https://kyc.swastika.co.in/customer/login
- It is not required to have a trading account, a Demat account serves the purpose.
- While applying through a broker, one also needs to have a UPI handle.
There are also reservations made in LIC IPO for policyholders. That is, if you hold LIC policy, you can apply in retail as well as policyholder category. Policyholder category might have some discount in it too.
February 28,
The Life Insurance Corporation (LIC) has announced February 28 as the deadline for linking the policy with the Permanent Account Number (PAN).
Yes. You can apply without using UPI ID, but then you have to apply it through Net Banking. In this case your demat account should be linked with the net banking, in order to apply for the LIC IPO.
While applying through broker, it is essential that you use a UPI handle.
As per the DRHP filed by LIC to market regulator SEBI, 10% of the total offering of LIC shares will be reserved for LIC policyholders.
Currently, LIC IPO has not yet launched. Once it gets launched you can apply through this process through Swastika’s Justrade2.0 app and website:
STEP I. MOBILE APPLICATION
- Tap on three lines in the top left corner
- Select IPO from the menu bar
- Select IPO which you have to apply,
- Tick on apply at cutoff, select lot size as per your requirement,
- Click on proceed and select UPI ID
- Fill your UPI ID,Tick on terms and conditions
- Click on review order.
- After submit request client will get a Mandate request in his UPI mobile application
- Approve the mandate and your application has now been bid.
STEP II. Through our website
- For applying as Existing Client
- Enter Client code or mobile no
- Enter OTP and submit
- Select IPO from the menu baar
- Select IPO which you have to apply,
- Tick on apply at cutoff, select lot size as per your requirement,
- Click on proceed and select UPI ID
- Fill your UPI ID,Tick on terms and conditions
- Click on review order.
- After submit request client will get a Mandate request in his UPI mobile application
- Approve the mandate and your application has now been bid.
Applying multiple applications through one PAN and single category (be it retail or policyholder or any other) can lead to rejection of all the applications.
Though, a PAN can bid for one application in all the categories. For e.g., a policyholder can apply in both Retail and Policyholder. But if two applications in Retail category itself are subscribed, it can lead to rejection of both of them – irrespective of whether those applications are coming from same or different brokers.
Only one of the two can apply for the Equity Shares under the Policyholder Reservation Portion category. The PAN number of the applicant Bidding in the Offer (you or your spouse) needs to be updated in the policy records. The applicant has to have a demat account in his/ her name and in case the demat account is joint, the applicant needs to be the first /primary holder of the demat account.
A policyholder has to have the demat account in his/her name. A policyholder cannot apply from the demat account of his/her spouse or son or a relative.
NRIs cannot apply for the IPO via the Policyholder Reservation Portion. Only a person residing in India during the bid or offer period is eligible for applying in the offer.
The spouse of an annuity policyholder (now deceased) who is currently receiving annuities is not eligible to apply for the LIC’s equity shares in the offer.
