LIC IPO : All you need to know

 About The Company

  • 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.
Competitive Strengths

  • 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.
Objective of the IPO 

  1. To achieve the benefits of listing the equity shares on the stock exchange.
  2. To carry out an offer for sale of 221,374,920 shares by selling shareholders.

IPO Issue Details

LIC IPO DateMay 4, 2022 to May 9, 2022
LIC IPO Face Value₹10 per share
LIC IPO Price₹902 to ₹949 per share
LIC IPO Lot Size15 Shares
Issue Size221,374,920 shares of ₹10
(aggregating up to ₹21,008.48 Cr)
Offer for Sale221,374,920 shares of ₹10
(aggregating up to ₹21,008.48 Cr)
Retail DiscountRs 45 per share
Employee DiscountRs 45 per share
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
QIB Shares OfferedNot more than 50% of the Net Offer
Retail Shares OfferedNot less than 35% of the Net Offe
NII (HNI) Shares OfferedNot less than 15% of the Net Offe
Company Promoters

The President of India, acting through the Ministry of Finance, Government of India is the company promoter.


Company Financials



Peer Analysis




Personal View

  • LIC IPO subscribed 1.32x on Day 3 of bidding process
    • QIB: 55%
    • HNI: 68%
    • Retail: 1.19 times
    • Employee: 2.94 times
    • Policyholder: 3.87 times

- Current GMP for LIC is 50 which has been dropped from 90
- LIC IPO is going to list between such negative market conditions which is definitely going to impact its listing.
- LIC is going to be a Risky IPO looking at the current market scenario.
- The most attractive thing for LIC is its EV, which makes it worth buying at its listing price.
- Apply in Retail and Policyholder category with minimum one lot in each category
- Looking at the current market situation if applying then strictly do for listing gains only.
- Long Term view not recommended from our Perspective.


Dos & Don'ts

- Apply with multiple lots in retail category and with atleast single lot in Policyholder category

- One pan can be used to apply for 3 applications in different categories, retail/HNI, Policyholder and Employee

- You can apply from different Demat accounts linked with different PAN e.g from your family members account so as to get more chances of allotment

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