Updates on LIC IPO
LIC, India's biggest insurer and investment company, come with the most significant updates of LIC IPO. The company has filed DRHP with SEBI to increase its funds through an initial public offering.
The IPO consists of an offer by the Government of India to sell up to 316.25 million shares; LIC's IPO is expected to be the largest IPO in India to date.
After listing, LIC will become the largest company by market capitalization. It will surpass the largest issue by digital payments company One97 communications or Paytm, which raised Rs 18,300 Crore in November 2021.
What is LIC IPO?
LIC - India's largest investment and insurance corporation will launch its IPO on March 11, 2022.
The company is a big name in the insurance sector as it currently operates through 8 zonal and 113 divisional offices. Through its IPO, LIC first aims to address working capital requirements.
Secondly, it is required to meet its corporate purposes as well.
LIC IPO: When will it Happen?
In March, more than 31.6 billion shares (5% of government shares) were opened on D Street, giving insurance giant employees and policyholders a discount from the lowest rates.
What is the Expected Date of LIC IPO?
According to recent updates of LIC IPO, It is expected to launch its IPO on March 11, 2022.
How LIC IPO Will Benefit Its Policyholders?
According to the prospectus, employees and policyholders of the largest insurance company in the country will receive the lowest discount.
Shares to be booked for policyholders can reach up to 10 percent. "The total bookings for qualified policyholders must not exceed 10 percent of the offered size," DRHP explained.
Employee quotas are limited to 5%.
To invest in the long-awaited LIC IPO, policyholders need to have two things. The policyholder's PAN is updated on the LIC portal, and the policyholder must have a Demat account.
Policyholder’s Discount:
Potential discounts will be announced at least two business days in advance as the offer's start date approaches.
The policyholder assignment at the IPO (the first of its kind) requires the central government to designate LIC as one of the reserved categories under last year's amendment to the LIC Act of 1956.
How Can Policyholders Check LIC Policy PAN Link Status
- Go to https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
- Enter your insurance number, date of birth, PAN information, and capture. Then press the Submit button.
How to Link Your PAN Card with LIC Policy
Policyholders can use the online process to link their policy to the PAN. However, policyholders who are new to technology can ask agents for technology.
What is the Market Share of LIC?
LIC holds a majority stake in the Indian life insurance market. The government wants to raise $ 12 billion by selling its shares in the IPO and hopes the proceeds will help close the deficit gap this year.
LIC is the world's largest domestic market share, accounting for more than 64.1% of total premiums as of 2020 and providing the highest return on equity of 82% in terms of life premiums. Crisil's report states.
About LIC IPO Financials
LIC reports that after-tax profit for the first half of the fiscal year 2021-22 is Rs 1,437 compared to Rs 6,14 in the year-ago quarter.
The growth rate of new business insurance premiums in the first half of 2010 was 554.1%, 394.76% in the same period of the previous year.
What is the Embedded Value of LIC IPO?
According to DRHP, the embedded value of LIC is set at 5.39 trillion rupees. Companies usually trade at about 34 times the EV.
How much LIC stake is the government selling?
The government has announced that it will sell 5% of its total capital in shares.
LIC was founded on September 1, 1956, by the merger and nationalization of 245 life insurance companies in India. The initial capital is 5 Crore rupees.
Although many private life insurers have entered the market, LIC is still the leading life insurer.
Steps to Apply for LIC IPO with Swastika
If you've been waiting for a LIC IPO and want to invest in it, Swastika offers investors several benefits such as security features, key conveniences, and more.
Below is how investors apply for LIC IPO using the Swastika
Step I. Mobile Application
- Tap the three lines in the upper left corner.
- Select IPO from the menu bar
- Select the IPO you need to apply for.
- Check Apply by Cutoff and select the lot size according to your requirements.
- Click Continue and select UPI ID.
- Enter the UPI ID and check the Terms of Service. After submitting the request, the client receives the mandate request in the UPI mobile application and chooses to accept or send it.
Step II.
- For applications as existing customers
- Please enter your customer code or mobile number.
- Enter the OTP and send
- Select IPO from the menu bar
- Select the IPO you need to apply for.
- Check Apply by Cutoff and select the lot size according to your requirements.
- Click Continue and select UPI ID. Enter UPI ID.
Enable the terms of use. After submitting the request, the client receives the mandate request in the UPI mobile application and chooses to accept or send it.
After successful registration, the investor will be required to enter the lot size and suggested price. You can click the submit button to place your order when you're done.
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