Life Insurance Corporation of India (LIC) has announced its much-awaited initial public offering, which will kick off next month. Here are the key things you must know about this mega issue:
- When will LIC IPO open for subscription?
LIC IPO will open for subscription between May 4 (Wednesday) to May 9 (Monday). - What is the price band for LIC IPO?
The company will sell its shares in the range of Rs 902-949 per equity share. However, it would offer a Rs 60 discount to policyholders and Rs 40 to retail investors and employees. - What is the issue size of LIC IPO?
The government will raise about Rs 20,557 crore through the initial public offering, which is short of earlier projections of about Rs 60,000 crore. However, despite the truncated size, it will still be the largest ever IPO in India. - How much stake is LIC selling via IPO?
The issue is entirely an offer for sale (OFS) by the government of India, which will offload 22.13 crore equity shares, aggregating to a 3.5 per cent stake of the company. Earlier, the company was eyeing to offload a 5 per cent stake in the company. - What is the lot size for LIC IPO?
Investors can bid for shares in a lot size of 15 shares and in multiples thereof. At the upper range of the price band, one lot of LIC will be worth Rs 14,235 crore, exclusive of any discount. - How much quota is reserved for policyholders in LIC IPO?
There is an employee reservation of 15.81 lakh shares while 2.21 crore shares are reserved for policyholders. Retail and employees will get a Rs 45 discount, while policyholders will get Rs 60 discount.Half of the shares from the net issue are reserved for qualified institutional buyers (QIB), 15 per cent of the shares will be reserved for non-institutional investors while the rest 35 per cent is allocated to retail investors.
- When will LIC shares list?
Shares will be allotted to successful bidders on May 12, and the refund to unsuccessful bidders will be credited on the next day. Shares will be credited to the demat account by May 16 and the stock is expected to list on the bourses on May 17. - What is LIC’s valuation?
The valuation of the state-run insurance behemoth is pegged at Rs 6 lakh crore. This valuation is roughly 1.12 times the embedded value of Rs 5.4 lakh crore. - How profitable is LIC?
The AUM of LIC jumped about 10 per cent to Rs 37,46,404.47 at the end of the financial year 2021 from Rs 34,14,174.57 crore in the previous year. The net profit of the company jumped to Rs 2,974.14 crore from Rs 2,710.48 crore during the period under review. For the period ended December 31, 2021, LIC had a total AUM of Rs 40,90,786.78 crore and reported a net profit of Rs 1,715.31 crore - How big is LIC?
LIC is the fifth largest life insurer in the world by life insurance gross written premium (GWP) and the 10th largest insurer globally by total assets. At the end of FY21, LIC had a 66 per cent market share in new business premium (NBP).
