LIC IPO Date, Pre-Overview, GMP, Price Band, Share Price: When it comes to Life Insurance, the very first name that strikes the mind is LIC. Life Insurance Corporation (LIC) is the largest and oldest Insurance provider in the country owned by the Government of India. After the budget speech for FY 2020-2021, it is expected that LIC IPO would be the biggest IPO of the decade. Nirmala Sitharaman, Union Finance Minister, in her budget speech proposed the launch of the IPO of LIC and since then potential investors are having their eyes on the launch of the IPO.
LIC IPO Issue
Currently, the government is having a 100% stake in the company and through this IPO company’s 10% stake will be sold as a part of the disinvestment of the Government’s share in the Insurance company. Potential investors have to wait as there is still some work remaining in the Pre-IPO phase. There is not much information available regarding the biggest IPO as the company has not submitted its draft red herring prospectus (DRHP) for IPO as of now. The government has selected Deloitte as the Pre-IPO Transaction Advisor for the IPO.
The company has assured employees that they will not be affected by the IPO launch and also the policyholders might get a reserved quota in the upcoming IPO. The IPO issue size might be Rs.80000 to Rs.100000 crores as per speculations. However, all the confusion regarding this IPO is expected to be clarified soon once the company will submit its draft prospectus regarding the launch of the IPO.
LIC Initial Public Offering (IPO): Overview
| IPO Issue | LIC IPO |
| Issuer/ Company | Life Insurance Corporation (LIC) |
| Official Registrar | K-Fin Technologies |
| Book Running Lead Managers | – |
| Type of IPO Issue | Book Building Issue |
| Offer for Sale (OFS) | 221,374,920 shares of Rs 10 |
| Issue Size | 21000 crore |
| Face Value | Rs 10 per share |
| Listing at | NSE, BSE |
| IPO Price Band | 902 to 949 Expected |
| Minimum Investment | 13,530 |
| Lot Size | 15 |
| Bidding Date | 4 to 9 May 2022 |
| GMP | 85 per share |
| Official portal of the issuer | www.licindia.in |
Timeline of LIC IPO Issue
| Events | Dates |
| Opening of IPO Offer | 4 May |
| Closer of IPO Offer | 9 May |
| Finalization of Basis of Paytm IPO allotment | 12 May |
| Initiation of refunds | 13 May |
| Credit of Equity shares to Allottee’s Demat Accounts | 16 May |
| Listing of Paytm IPO/ Starting of share trading | 17 May |
Benefits of LIC Initial Public Offering Issue
- With this IPO launch, any potential investor can participate in the process of raising capital for LIC.
- The public offering will enhance transparency in the Governance and operations of the insurance company.
- IPO would open doors for more foreign investments.
- Since the LIC stakes that are going to be public are not more than 10%, the company is still under the complete control of Government.
- Company employees and retail investors could be part of the Net proceeds created through the IPO.
Size of LIC IPO Issue
With the launch of this IPO, the Government of India is likely to dilute nearly 10 % (maximum) of total takes in the company. As per the expert’s analysis so far, LIC IPO size could range from Rs.80000 to Rs.100000 Crores. The actual size of the IPO is still announced.
LIC IPO Price
The price band In IPO is the value set by the issuer where the upper and lower price limit is indicated. LIC IPO price will be determined on the basis of valuation of the existing share price of the competitors in the particular sector and on actual valuation. In case of LIC IPO, the price band has not been disclosed yet. The price of the issue is supposed to be disclosed one week before the date of opening of the issue for public subscription. Once the price band of the upcoming IPO will be announced, we will update it here.
LIO IPO Book Building Proportion
| Category | IPO Subscription |
| Qualified Institutional Buyers (QIB) | Not more than 50% of net offer |
| Non-Institutional Investors (NII) | Not more than 15% of net offer |
| Retail Individual Investor (RII) | Not more than 35% of net offer |
| Employee Reservation () | Rs 45 per share |
Application for LIC IPO
If you are also the one who is anxiously waiting for LIC IPO, then you must be aware of the process of placing a bid for the issue. Potential investors can apply online either through the Broker (UPI) or through ASBA (net banking). Those who are willing to apply using ASBA must have a Demat account.
The most common method for IPO application that is used commonly these days is through UPI. There are several brokers which offer IPO application services to investors. Zerodha is the most popular and one of the biggest stock brokers through which you can submit your bid for LIC IPO. The application process is as follows-
- Start by visiting the official web portal of Zerodha.
- Now, you have to sign up and you will get the login details.
- Use the login details and login into Console.
- Sign up and create an account on Zerodha Console.
- Go to the portfolio link and select IPO.
- Go to IPO row and Click on the bid tab given against the concerned IPO i.e. LIC.
- Enter UPI details, price, and quantity details.
- Click on submit tab.
- Give approval for mandate through UPI App.
- On a successful application for the IPO, an application number will be generated. You can use this number to check the share allotment status.
LIC IPO 2022: Quick Links
| LIC official website | http://www.licindia.in/ |
| LIC IPO RHP | Click Here – Available |
| LIC IPO Apply Link | Apply Here– |
| CarTrade IPO Allotment Status | Click Here |
| Chemplast IPO Allotment | Click Here |
Frequently Asked Questions
It is to be available from 4 May 2022.
The names of lead managers will be disclosed after the issue of DRHP/
The IPO is likely to be launched for not more than 10% stakes of the government in the company.
IPO of L I C is going to be an Excellent share issue .It is bount to improve the
Economy of India .love to subscribe this great IPO .