The LIC IPO Allotment Status is out now; the IPO will go public on May 4, 2022, and conclude on May 9, 2022. The LIC IPO would be one of the largest ever launched in India. The LIC IPO DRHP has filed for a complete offer for sale with no Fresh Issue. The government plans to sell a 3.5 percent interest in the company in a mega-IPO. LIC IPO will generate about 21,008 crores through an IPO that will include a fresh issuance of – and an offer for sale of up to 221,374,920 equity shares of 10 apiece. The retail quota is 35%, the QIB quota is 50%, and the HNI quota is 15%.The LIC IPO Allotment Date is Expected to be 12th March 2022.
The Life Insurance Corporation has a 72 percent market share and collects 66 percent of the total premiums collected in the industry. The company’s valuation remained in the range of 9 Lakh to 10 Lakh crore. The firm was established in 1956, and it is the result of a merger of 245 insurance firms. The corporation enjoyed a monopoly in life insurance until the 1990s when the government gave the private sector a chance. They have around 2000 branches in India, with eight zonal offices in Delhi, Chennai, Mumbai, Bhopal, Hyderabad, Patna, Kanpur, and Kolkata.
LIC IPO Allotment Status 2022
|Company Name||Life Insurance Corporation (LIC)|
|LIC IPO Start Date||4th May 2022|
|LIC IPO Last Date||9th May 2022|
|LIC Per Share Price||₹902.00-₹949.00|
|IPO Lot Size||15 Shares|
|Listing Exchange Name||National Stock Exchange and Bombay Stock Exchange (BSE and NSE)|
|LIC IPO GMP||₹ 25|
|Profit||10 to 12% (Expected)|
|LIC IPO Application Rate||₹ 400|
|Expected Raise||₹ 25,000|
|Retail Investor Quote in LIC IPO||35%|
LIC IPO Allotment Date
LIC IPO Allotment Date::The LIC IPO Allotment date is expected as of 12th May,2022.According to the article, the Indian government plans to sell its 5% stake in the LIC initial public offering (IPO). The sale of the 5% equity will generate funds for the government. The Federal Government intends to seek a total of 316,249,885 shares. The share will be sold for ten cents a share to those who purchase it. Furthermore, a fixed quote will be issued for retail investors, accounting for about 35% of the overall proceeds from the IPO.
Life Insurance Corporation of India (LIC), one of the world’s oldest and largest insurance firms, has been in operation since 1876. As of March 2019, LIC has a total fund of 28.3 trillion dollars. During the fiscal year 2018–2019, the full value of vendor programmes was $21.4 million. The Life Insurance Corporation of India paid out 26 million claims in the fiscal year 2018–19. According to the firm, it has 290 million policyholders.
LIC IPO: GMP, Price, and Key Details
- KFin Technologies Limited is the official registrar of the LIC IPO.
- LIC IPO size: The government intends to generate over Rs 21,000 crore from the IPO, making it the largest IPO in India’s history.
- LIC IPO Grey Market Premium (GMP): According to sources, the LIC IPO grey market premium (GMP) today is Rs 85. This was Rs 69 on Monday.
- Investment limit for LIC IPO: The LIC IPO has a minimum application amount of Rs 14,235. Rs 1,99,290 is the maximum amount that a retail investor may invest in one transaction.
- Date of the LIC IPO: The public offering will begin on May 4, 2022, and end on May 9, 2022.
- LIC IPO application limit: A single bidder can apply for a minimum of one lot, with a maximum of 14 lots authorised for a single bidder.
- The government of India has set the price band for the LIC IPO at Rs 902 to Rs 949 per equity share.
- Discount for LIC policyholders: In the IPO, policyholders would receive a discount of Rs 60 per equity share.
- The lot size for LIC IPO: One lot of LIC IPO has 15 LIC shares.
- Discount for LIC workers and agents: LIC personnel and agents would receive a Rs 45 discount per equity share.
- Date of the LIC IPO allocation: The date of the LIC IPO allocation will be revealed on May 12, 2022.
- LIC IPO listing: LIC shares are expected to be listed on the BSE and NSE on May 17, 2022.
How do I purchase a LIC IPO Online?
The LIC IPO would be listed on the major stock markets, BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) (National Stock Exchange). You must have a DEMAT account to purchase a LIC IPO online.
You may book an IPO using websites and applications such as angleone, groww.in, zerodha, and others. As a payment method, you can utilise your UPI id. You must notify your broker that you intend to submit an IPO application using your UPI ID.
Is the LIC IPO a good or bad investment?
LIC is one of India’s largest and oldest insurance companies. The Life Insurance Corporation of India had a total life fund of 28.3 trillion rupees as of 2019. In the fiscal year 2018–19, the total value of vendor programmes was $21.4 million. In 2018–19, the Life Insurance Corporation of India resolved 26 million claims. It has a total of 290 million policyholders.
Life Insurance Corporation engages in various industries, including banks, cement, chemicals, electronics, finance and investments, healthcare, hotels, textiles, transportation, transportation and logistics, electrical and electronics, engineering, and construction, among others.
Important good aspects
- LIC is a hybrid of an insurance business and an investment firm, and its products are a hybrid of insurance and guaranteed-return investments.
- The LIC manages assets of Rs 39 lakh crores, which is more money than the mutual fund industry. These funds are invested in both equities and bonds, and they possess 4% of all listed equities in India and more government bonds than the RBI.
- The public has a high confidence level in LIC for both life insurance and investments. In India, LIC is synonymous with insurance.
- LIC has approximately 13.5 lakh agents who bring in most new business. LIC plans to provide ‘set returns’ and life insurance coverage. This makes it simple for brokers to sell and provides insurers with peace of mind.
- Leading insurance carrier in India and the world’s fifth-largest insurer by GWP.
- A variety of life insurance plans to accommodate people’s varying insurance needs.
The most important challenges
- LIC is experiencing low new policy growth as it loses market share to private insurance providers, particularly in metropolitan regions.
- It is challenging to assess LIC since its business model is unlike any other. LIC obtains money upfront and then promises to reimburse policyholders later. The premiums they collect (both insurance and half investment) are not income.
- Insurance and investment products have a low-profit margin.
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