Life Insurance Corporation announced LIC IPO will be Schedule (tentative) is ON 7th March. 9th March Anchor investors allotment will be announced and Price will be Rs.2000-2100/share Face value is Rs.10.
Life Insurance Corporation (LIC IPO) has not paid any dividends to the government during the past financial year. It made use of the reserves it had to boost its capital that has now increased in value to 6,325 million the government informed Rajya Sabha on Tuesday.
In the fiscal year, 2019-20 the insurance giant is scheduled to launch an initial public offering (IPO) and paid out Rs 2,610.75 crore in dividends to the government based on profits for FY 2018-19.
In this article, I will explain the full Details OF LIC IPO and How to apply for LIC IPO as a Policyholder.
Life Insurance Corporation (LIC IPO) Details
The Life Insurance fund of India was established on the 1st of September 1956 in the year that India’s Parliament of India passed the Life Insurance of India Act which nationalized the insurance assiduity system in India. More than 245 insurance companies, as well as provident societies, were merged to form the state-owned Life Insurance Corporation of India.
In the year 2019, the Life Insurance Corporation of India had a total fund for life in the amount of Rs28.3 trillion. The total value of the programs between the years from 2018 to 19 was Rs21.4 million. Life Insurance Corporation of India has settled 26 million claims during 2018 and 19. There are 290 million policyholders.
LIC invests in areas such as cement, banks chemicals and diseases electrical and transmission, electronics and electrical construction and engineering and presto-moving consumer goods investment and finance, hotels, healthcare information technology, and mineral exploration, automobiles and ancillaries, oil and natural coffers, and textiles, retail transportation, logistics.
LIC IPO – Details(TENTATIVE) – Information
| Issue Open Date | 10th March 2022 |
| Issue Close Date | 14th March 2022 |
| Issue Type | Book Built Issue IPO |
| Price Band | Rs 2100 to 2100 Share (10% Discount For Employees & Policyholders) |
| Minimum Lot Size | 7 Shares/ lot |
| Face Value | Rs.10 |
| Issue Size | 6,32,49,97,701 Shares |
| Book Running Lead Managers | – |
| Registrar | – |
| Book Building Proportion | Anchor: 8,06,43,751 Shares (@2100) QIB: 5,37,62,480 Share (@2100) NII: 4,03,21,861 Share (@2100) Retail: 9,40,84,342 (@19,757.80 Crs) Employees: 1,58,12,495 Shares (@1890)(10% Discount) Policy holders: 3,62,49,875 Shares (@1890)(10% Discount) |
LIC IPO Date
LIC IPO is one of the most awaited IPO of the last decade, and everyone is eager to find out the date of launch. According to the announcement in budget, the IPO will likely begin on the 7th March of 2022.
The process that was slowing down by the pandemic is now fully. The government has approved Deloitte to be the initial public offering (IPO) advisor for transactions. There’s still much work to be done during the pre-IPO stage and we’ll need to be patiently waiting for the date.
LIC IPO Size
The government is likely to sell less than 10 percent in its holding within LIC. The estimates of valuation that analysts have made range from crores up to 65,450 crores. If the fact that the government sells 10 percent of its stake and the size of the IPO is 6,32,49,97,702 Shares Though this is based on News.
LIC IPO Price
The price range for an IPO is Rs.2000-2100 in a lot of 7 shares. Employees and Policyholders get a 10% discount On their Bid.
LIC IPO Valuation
Many analysts have provided rough estimates of the value of LIC ranging from Rs. 55,550 crores to 65500 crores. But the government will have to determine the exact value of LIC prior to making DRHP.
DRHP:
- EPS for FY18-19: Rs4.15
- EPS for FY19-20: Rs4.29
- EPS for FY20-21: Rs4.70
- EPS for H121-22: Rs2.38
- RoNW for FY18-19: 322.25%
- RoNW for FY19-20: 317.14%
- RoNW for FY20-21: 45.65%
- RoNW for H121-22: 18.76%
LIC Net Profit For 1st quarter of FY 2021-2022
In the event of an IPO, Life Insurance Corporation of India (LIC) has reported an income following taxation of $1,437 million during the first quarter of the fiscal year 2021-22, contrasted with 6.14 crore reported in the previous period.
The new business premium rate of growth stood at 554.1 percent in the early part of the financial year, in contrast to 394.76 percent during the same time frame of the previous year’s fiscal year LIC stated on its website on Tuesday.
The total net premiums grew by 1 679 crores to 1.86 lakh crore between April and September 2021, up from 1.84 lakh crore during the same time frame in the year before.
The state-owned insurer posted an increase of Rs 17,404 crore for premiums overall and investment income grew to 3.35 lakh crore during the period between April and September 2021.
The total investment income was up by Rs 15,726 crores to 1.49 lakh crore in the first quarter of 2021-22, the insurer announced.
Dividends, interest as well as rent (gross) were up at 10,178 crores over the beginning of the current fiscal year. The profit from the sale or redemption of investments grew to Rs 10,965 crore.
The capital of LIC’s shares has been raised to Rs. 6,325 crore in its first quarter of the current financial year just before its IPO.
You Can Also Read: Upcoming IPO IN 2022
How to Buy LIC IPO as PolicyHolder?
If you are a policyholder then I am going to explain to you how to apply in LIC IPO as Policyholder.
- A Demat account: Because buying stocks is available only with a Demat bank account and you’ll need one that is registered in your name. You can create an account for a Demat account at any discount or full-service stockbroker. You must submit an application to open opening a Demat account and then submit basic KYC documents, such as ID proof, proof of age, and bank information as well as a signed document. and pay the deposit (if there is one) to open the account. The procedure for opening an account on a Demat account through Groww is easy and only requires minimal documentation.
- The PAN card that is linked directly to a LIC Policy: LIC has been trying to hound policyholders to connect their PAN to their policies to ensure KYC compliance. In a bid to use an IPO as an occasion LIC issued an announcement that states, “In order to participate in any public offering, policyholders be required to ensure that the PAN information is updated in the records of the Corporation.”Thus it is imperative that your PAN card information is required if you intend to join a LIC IPO. PAN card details are required whenever you make trades on the exchange. In this case, you will be required to make sure you have your PAN number is tied to the details of your LIC policy.
linking the PAN Card to LIC policy
The process of linking your PAN card to the account of your LIC policy is not subject to negotiation since the company has established it as a qualifying requirement for current policyholders to submit an application for its IPO in the category of policyholders that offers certain advantages. Because of an online option, you can connect to your PAN card with the LIC insurance account with just just a few steps that take only just a few minutes.
This is how the process of connecting your PAN card to your LIC policy functions This is how you can link your PAN card to your LIC policy
- Click on https://linkpan.licindia.in/UIDSeedingWebApp/ to visit LIC’s PAN linking page
- Include the following information on the form
- Your birth date (as stated on your Personal Identification Number)
- Gender
- Email ID
- PAN Card number
- Your full name (as stated in the PAN Card)
- Mobile number
- Policy number
- Check the box that contains the declaration and agreement for connecting the PAN Card details to your policy.
- Input the code for the captcha that is displayed
- Click on the ‘Get OTP’ button.
- An OTP will be transmitted to the phone number you’ve entered
- Verify the OTP
A PAN Card connected directly to a LIC Policy account
LIC has been harassing policyholders to connect their PAN to their policies to help ensure KYC compliance. Utilizing an IPO to create an opportunity LIC issued an announcement that states, “In order to participate in any public offering, policyholders have to ensure that their PAN details are up-to-date in the records of the Corporation.”
Thus you must ensure that your PAN card information is required if you intend to join a LIC IPO. PAN card information is sought in this way in the event of trading on an exchange. You will also need to make sure you have your PAN number is tied to your LIC policy.
If you Don’t LInk your PAN to Your Demat account or LIC Policy Account as same. then you can apply as a Retail Investor.
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