LIC IPO: A total of 24 life insurance companies are currently operating in India and it is no surprise that Life Insurance Corporation or LIC has grasped the top spot among all for quite a long time now.
In the Fiscal year 2020-2021, their market share was evaluated to be 69% and during this financial year alone, the company had obtained 1st-year premiums of IND 1.78 trillion.
As per the Insurance Regulatory and Development Authority of India, the figure was 25.17% greater than that of the fiscal year 2019-2020 which is pretty incredible growth.
We must also mention that LIC has assets of a total of INR 34 trillion wherein the Indian government occupies a hefty stake of 95%.
The banking industry in India has been going through a tough time because of the ongoing pandemic as well as other issues concerning the quality of assets.
At such a time, the IPO seems truly like a breath of fresh air!
Given the prominence of this company, IPO listing can assist the BFSI sector in regaining its strength in the records and appealing to a great number of institutional as well as retail investors.
Recently, there has been a lot of buzz about the LIC IPO Latest News.
There are too many questions and discussions about the LIC IPO Date as well as all other related details related to the IPO. Let’s take a look at everything you need to know.
LIC IPO Latest News
The Indian Cabinet Committee of Economic Affairs granted its in-principle authorization for LIC IPO listing in July. A total of ten merchant bankers had been assigned.
LIC IPO is however unlikely to be launched in the ongoing fiscal year ending in March 2022.
LIC IPO valuation is taking longer than expected and the preparatory task is yet to finalize as well.
A senior officeholder among the ten merchant bankers mentioned that there are a few important things that demand to be looked into regarding LIC IPO valuation.
The LIC IPO needs vetting by the Securities and Exchange Board of India, also known as SEBI as well as the Insurance Regulatory and Development Authority of India, or IRDAI.
The process however seems to be headless for nearly seven months now, as claimed by the officeholder.
Another officeholder working at LIC IPO informed that the LIC IPO valuation is an intricate and long process primarily because of its mammoth magnitude, property assets, subsidiaries, product mix, as well as profitability sharing configuration.
The scope of the stock exchange is going to be dependent largely on the valuation.
The officer also mentioned that it is a truly tough task to achieve the launch deadline of the forthcoming quarter of the fiscal year 2021 at any cost.
Nevertheless, Tuhin Kanta Pandey, DIPAM Secretary, later expressed assurance in one of her tweets that LIC IPO plans are on course and that it is going to come about in the forthcoming quarter of January-March 2021-2022.
Also read – Upcoming IPO in India
LIC IPO Date
Nirmala Sitharaman, the Finance Minister of India, in her speech this year in February, mentioned that the LIC IPO will be launched in the country before the end of this fiscal year.
Pandey asserted that the IPO date is expected to be sometime in the last quarter of this fiscal year, that is January to March, and that the IPO is under process.
LIC IPO Price
The expected LIC IPO price band is deemed to be around INR 400 to INR 500.
As per PTI’s statement, the legitimate LIC IPO share price shall be INR 25,000 crore.
This large amount is split up into a total of 2500 crore shares with the Life insurance corporation IPO share price of each share being INR 10 according to the revised regulation.
Up to 10% of the Life insurance corporation IPO size will be secured for policyholders.
Talking about disinvestment, Nirmala Sitharaman recently claimed that the government of India is advancing nicely enough.
Any loose ends among different departments as well as bureaucracy require a specific amount of time but the government is working to speed that up.
In the early months of the year, the government of India had revised the Life Insurance Corporation Act of 1956 for facilitating the listing.
According to this amendment, the government of India will now preserve at least a 75% stake in this government-owned insurance company for the first 5 years after the Life insurance corporation IPO, and this figure is going to drop down later, and the government will then keep at least a 51% share after the 5 years of LIC IPO listing at all times.
Life Insurance Corporation IPO Size
The Indian government is expected to diminish nothing greater than ten percent of its total share in the LIC IPO.
As per the estimations provided by many different critics, the upcoming IPO size is expected to range from around INR 70,000 crores to INR 1 lakh crores.
Though, the Finance Ministry of India, during their budget 2021 presentation, announced that the government of India was hoping to boost to INR 90,000 crores from the share sale of IDBI Bank and LIC.
Under such conditions, the LIC IPO size is not likely to touch the incredible amount of INR 1 lakh crores and will possibly be constrained to around INR 70,000 crores and INR 80,000 crores.
Having said that, the official estimation of the IPO size continues to be unannounced till now.
LIC IPO Valuation
According to the estimation provided by the government of India, the IPO valuation is set at approximately INR 13 lakh crores to INR 15 lakh crores.
Nevertheless, the majority of market analysts, as well as experts, have seemed to settle the numbers for the LIC market cap from around INR 8 lakh crores to INR 11.5 lakh crores.
Again, if you wish to invest in the LIC IPO, you would need to wait a little while for the company to release its official figures for the real LIC IPO market cap.
Also read – Data patterns IPO
Should I invest in this IPO?
There are plenty of upsides to the LIC IPO. The following is a quick preview of the same:
- The LIC IPO would help individual retail investors in taking part in the revenue production system of LIC.
- The LIC IPO is expected to bring about tremendous degrees of transparency in the procedures as well as administration of insurers.
- The LIC IPO would also strengthen the BFSI sector by attracting a generous amount of foreign investment.
- Since the share sale is not going to be anything more than ten percent, the Indian government would continue to preserve complete control over the policies of LIC.
- There’s going to be entirely no negative effect on employees, policyholders, as well as other stakeholders.
How can I get LIC IPO?
If you’ve been wondering “How can I get LIC IPO?”, then we have some good news for you.
It is incredibly simple to invest in the LIC IPO for everyone.
The following are all the easy steps that you must follow if you wish to invest in the LIC IPO:
- First and foremost, you will need to sign in to your digital trading on any suitable web browser of your choice using valid credentials.
- Once you have successfully signed in, tap on the section named ‘IPO’.
- After that, tap on the option named ‘Place an Order’.
- Select the specific IPO where you plan to invest and in this case, click on LIC IPO.
- Next, tap on the option of ‘Place Order’.
- Insert the required bid details and tap on the option of ‘Confirm Order’.
- You will now be required to either provide confirmation for your bid or edit it.
- After you have confirmed your bid, tap on ‘OK.’
LIC Pan Update Check
If you wish to invest in the upcoming LIC IPO as one of their policyholders, you will be required to first register your Demat account.
Apart from that, you should also update your information related to PAN for LIC records.
For your LIC IPO Pan Update, follow all the below-mentioned steps:
1. First and foremost, you will need to visit the link provided below- https://linkpan.licindia.in/UIDSeedingWebApp/getPolicyPANStatus
Here you will be able to check your LIC IPO Pan Update status.
2. Enter all the necessary information in the applicable fields including your specific LIC policy number, date of birth, as well as Pan, of course.
3. You will then need to complete the Captcha that will appear on your screen.
4. Once you have done that, you will immediately be able to check your LIC IPO Pan Update status.
That’s it! That was all you needed to do for your LIC Pan Update Check.
In case you haven’t executed your LIC IPO Pan Link, don’t worry. Below, we have mentioned a thorough guide to LIC IPO Pan Link.
LIC IPO Pan Link
For LIC IPO Pan Link, follow all the simple steps mentioned below to do so:
1. First and foremost, you will need to visit the official website of LIC at https://licindia.in/ or you can also simply head to https://linkpan.licindia.in/UIDSeedingWebApp/ which will lead you to a direct link.
2. On the website’s home page, choose the option of ‘Online PAN Registration’ and after that, click on Proceed.
3. Enter all the required personal details, including your specific policy number at LIC, PAN, contact number, as well as your email address. At this stage, you will need to be 100% cautious and provide all of the crucial information.
4. Complete the Captcha on your screen by choosing the suitable box.
5. Now an OTP (one-time-password) will be sent to your provided contact number.
6. Submit the appropriate OTP.
7. That’s it! Your LIC IPO Pan link was successful.
In case the above-mentioned method for LIC IPO Pan Link isn’t working for you and you can’t connect your PAN with LIC IPO, you should try to reach out to an official at LIC.
If you don’t possess a PAN already, you must link it to the LIC IPO as soon as you can after you have received the document.
Also read – Check Share price of any company
LIC IPO Review
Strengths of Life Insurance Corporation of India
- Numerous offerings: LIC proposes a variety of insurance policies. Some of the most prominent products of the corporation include life insurance programs, money-back schemes, endowment policies, 100% security, as well as term insurance schemes.
- Varied business portfolio: Life Insurance Corporation features a varied business portfolio. Some of the most significant lines of the enterprise include Pension Fund, Housing Finance, Card Services, as well as Mutual Fund.
- Large Fund base: The corporation functions with a fairly large fund base of almost Rs. 289.57 crores. Moreover, The greatest investor of India also has a powerful financial status with adequate flexibility for growing as well as expanding its portfolio even better.
Weaknesses of Life Insurance Corporation of India
- Limitations on PSU: Life Insurance Corporation is subject to a variety of limitations as it is a PSU. Such limitations could come up as a block to the functioning and development objectives of this firm.
- Massive workforce: Life Insurance Corporation has over 1 lakh workers currently working for the company. Sustaining an enormous workforce like this can become a challenging task, particularly during an economic crisis.
Conclusion
LIC IPO has generated a lot of buzz around its release.
While everyone looks forward to this gigantic IPO, the corporation doesn’t seem to confirm its launch date till now.
Nonetheless, from what we can say, you must certainly consider investing in the LIC IPO, and to do so, go ahead to open your Demat account right now!
Frequently Asked Questions (FAQs)
How can the LIC IPO affect the employees?
The LIC IPO is expected to show up with a particular reservation percentage for the employees.
This will urge the workers of the corporation to make investments in the forthcoming LIC IPO.
Is the LIC IPO going to prove advantageous to the prevailing policyholders?
Yes, of course! The prevailing policyholders at LIC may profit from nicer transparency in not only the operation but also governance factors of the Life insurance corporation.
Moreover, in case the issue appears with a particular quota for all the current policyholders, then they will probably have a better chance to make significant investments in the LIC IPO.