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Life Insurance Corporation of India (LIC) IPO

Price Range (₹)

Rs. 902 to Rs. 949

Issue Size (₹ in Cr.)

Upto Rs. 20,557 cr.

Minimum Quantity

15 shares

Bidding Period

May 4 – May 9, 2022

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About the Life Insurance Corporation of India (LIC) IPO

LIC has been providing life insurance in India for more than 65 years and is the largest life insurer in India, with :
- 61.6% market share in terms of premium (or GWP),
- 61.4% market share in terms of new business premium (or NBP),
- 71.8% market share in terms of number of individual policies issued,
- 88.8% market share in terms of number of group policies issued for the nine months ended December 31, 2021, as well as by the number of individual agents, which comprised 55% of all individual agents in India as at December 31, 2021.

(Source: CRISIL Report, RHP)

Strengths

Fifth largest life insurer globally by GWP and the largest player in the fast growing and underpenetrated Indian life insurance sector

For FY21, LIC issued approximately 21 million individual policies in India, representing approximately 75% market share in new individual policy issuances. The second largest player in the industry issued 1.66 million individual policies and had a 5.9% market share for FY21. (Source: the CRISIL Report)

Trusted brand and a customer-centric business model

The brand ‘LIC’ was recognised as the third strongest and 10th most valuable global insurance brand in 2021, as per the “Insurance 100 2021” report released by Brand Finance. As per the report, the brand value of LIC in 2021 was US$8,655 million, with a Brand Strength Index (BSI) score of 84.1 out of 100, corresponding to AAA- brand strength rating. (Source: DRHP)

Harnessing technology capabilities to support customer connect and drive operating efficiencies

As at December 31, 2021, LIC's portal had 18.60 million registered users and the Corporation’s mobile app for policyholders, available on both Android and iOS platforms, had 5.1 million registered users. The Corporation’s uses three online on-boarding digital platforms through which intermediaries can register new proposals for insurance and issue new policies - e2e, i-proposals, AtmaNirbhar Agents New Business Digital App (""ANANDA"")

Risks

The ongoing COVID-19 pandemic could adversely affect all aspects of business

These include (i) restricting the ability of agents to sell products; (ii) significantly increasing expenses due to changes in laws and regulations and investing in new methodologies to overcome the restrictions brought in to address the spread of COVID-19 and the adverse changes in population mortality/morbidity or utilization behaviours; (iii) adversely affecting the investment portfolio; (iv) adversely affecting operational effectiveness; and (v) heightening the general risks faced in the business (Source: DRHP).

Interest rate fluctuations may materially and adversely affect profitability

In addition, the limited amounts and types of long-term fixed income products in the Indian capital markets and the legal and regulatory requirements on the types of investment and amount of investment assets that insurance entities are permitted to make could severely limit the ability to closely match the duration of assets and liabilities and thereby decrease interest rate risk. (Source: DRHP).

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Why invest in IPO through ICICIdirect

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Follow 3 simple steps TO APPLY IPO

  • lock-in of 3 years
    Select IPO

    Go to the IPO section, select the IPO you want to apply from the list and click on ‘Apply’.

  • lock-in of 3 years
    Fill in the required details

    Fill in the quantity of the number of shares you want to buy. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

  • lock-in of 3 years
    Confirm your request

    Click on proceed to confirm the order. You can view the placed order under “order book”.

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  • lock-in of 3 years
    Select IPO

    Choose the IPO you want to apply from the list. Click on Apply.

  • lock-in of 3 years
    Fill in the required details

    Fill in the quantity of shares. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

  • lock-in of 3 years
    Confirm your request

    Check the A/C, UPI details and click on proceed. You will get an UPI link by which payment can be made.

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LIC IPO FAQs

The IPO is set to open on May 4th and close on May 9th, 2022.

Yes, anyone with a valid PAN card and a Demat Account can apply for shares in IPO as an investor.

There is no lock-in period for shares allotted in the IPO. 

 No. Only Resident policyholders can apply in the policyholder category

No. Group policy members are not eligible for the policyholder quota

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Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.