India's Biggest IPO (Initial Public Offer) of LIC (Life Insurance Corporation of India) is live. After Paytm, LIC will be the biggest IPO in the history of India with an offer of 21,008.48 Crore.
Today we will let you know all the details (Pointwise) of the IPO so that you can make the decision on whether to apply or not.
Open a Free Demat account with Paytm Money and Apply LIC IPO with Zero Brokerage: Click Here
Introduction
LIC is India's Largest Insurance Provider Company with a Market share of more than 66%
As of 30 Sep 2021:
1. It has a total AUM of Rs. 39 lakh crore.
2. LIC operates through 2048 branches, 113 divisional offices, and 1,554 Satellite Offices.
3. It operates globally in Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, UAE, Bahrain, Qatar, Kuwait, and the United Kingdom.
4. Variety of Products such as Life Insurance, Unit Linked Insurance Policies, Health Insurance, Pension Products, Saving Products, etc.
About LIC Positive Highlights:
1. LIC is an insurance and part investment products company with a combination of insurance and investment with a guaranteed return.
2. It has over 13.5 lakh agents.
3. LIC plans offer 'fixed returns' along with life insurance coverage.
4. 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.
5. LIC manages assets of Rs 39 lakh crores. That is more money than the entire mutual fund industry combined. They invest these funds across stocks and bonds.
6. They own 4% of all listed stocks in India and more government bonds than the RBI.
7. Leading insurance provider company in India and fifth largest global insurer by GWP.
8. A range of life insurance products to meet the varied insurance needs of individuals.
Risks with LIC
1. Poor New Policyholders Growth especially in Urban Areas
2. Margin is low in Products. As the most of the amounts are distributed as Commission
3. Backward updation as other Policy Companies such as HDFC and ICICI adopt new and upgraded methods.
4. Decreasing Profit after Tax from 2019
Purpose of the IPO
1. To get the Benefits of Listing in the Stock Market
2. Providing the Funds to existing shareholders due to an Offer for Sale
3. General Corporate Purposes.
Financials of the Company:
IPO Dates
Opening: 4 May 2022
Closing: 9 May 2022
Allotment: 12 May 2022
Refunds: 13 May 2022
Shares Credit in Demat Account: 16 May 2022
Listing on NSE & BSE: 17 May 2022
IPO Size, Lot, Issue & Discounts
1. IPO Date: 4th May 2022 to 9th May 2022
2. Face Value: Rs. 10 Per Share
3. Price Band: Rs. 902 to Rs. 949 (Per Equity Share)
4. Lot Size: 15 Shares Per Lot
5. Discount for Employees: Rs. 45 Per Equity Share
6. Discount for Retailors: Rs. 45 Per Equity Share
7. Discount for Policyholders: Rs. 60 Per Equity Share
Quota
1. For QIB: 50% or Less
2. HNI's: 15% or Less
3. Retailors: 35% or Less
Tips for Multiple Applications & Extended Timings
1. Policyholders can apply through two Quotas: 1 from Policyholder (+) 1 from Retailer with a Maximum amount of 2+2 Lakhs
2. Employees (having LIC Policies) can apply through 3 Quotas: 1 From Policyholders (+) 1 From Retailers (+) 1 From Employees with a maximum limit of 2+2+2 Lakhs
3. IPO Application timing has been extended till 7 PM (which normally falls within 5 PM). So, the new timings will be 10:00 AM to 7:00 PM
LIC IPO Registrar
Latest Grey Market Premium
10% on Listing Gain (But you are advised to Apply according to your research & Analysis)
Important Links
> Apply LIC IPO through Paytm Money with Zero Brokerage: Click Here
1. LIC IPO Draft Red-Herring Prospectus: Click Here
Hope you Like this Article! Do share us with your friends so that they can get the benefit of knowledge and earn wealth
Sources: Chittorgarh, LIC of India, BSE, NSE etc
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