loader2
Partner With Us NRI

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

Open an online Trading Account with ICICIDIRECT

About the Company

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).

30 second IPO overview

EXPERT REVIEW VIDEO

ICICIdirect Research Rating

  • Avoid
  • Subscribe only for long term
  • Unrated
  • Subscribe
  To read our Research Report Download Now

Financials

Industry Trends

Subscription Status

Retail Individual Investor
Non-Institutional Investor
Qualified Institutional Buyers
Overall

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

Why invest in IPO through ICICIdirect

Paperless

Applications

Hassle-free

refunds

Convenient investments

within a few clicks

Multiple modes

of application

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”.

  • 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.

Features & Benefits ICICIdirect

Trusted by

75 lakh+

customers

45+

Investments & Liability Products

One Click

Investment Basket

Access to

Award-winnin

FAQs

An Initial Public Offering (IPO) is when a company issues common stock or shares to the public for the first time. It is the process where a privately held company becomes a publicly traded company with the initial sale of its stock. An IPO is a tool that companies use to secure capital through investments for future use. In most instances, this investment is used to expand or improve the business.

A price band is a price floor and a cap between which a seller will let buyers place bids on a security, usually during an initial public offering (IPO).

Minimum Order Quantity, as name says, is the minimum number of shares investors can apply while bidding in an IPO. If investors want to bid for more shares, they can apply in multiples of IPO market lot (lot Size or IPO bid lot) of shares.

If an investor wants to place bids for less than Rs.2 lacs, he needs to apply in the Retail segment. If an investor wants to bid for more than Rs.2 lacs, he needs to apply in the HNI segment.

Cut-off price is the offer price, finalized by a company in consultation with the book running lead managers (BRLMs), which could be any price within the price band. Applying on Cut-off price means the investor is ready to pay whatever price is decided by the company at the end of the book-building process.

When applying at a cut-off price, an investor has to pay the highest price while placing the bid. If a company decides the final price lower than the highest price asked for IPO, the remaining amount is returned to the retail investor.

An investor can apply in all Mainboard IPOs through ICICIdirect. However, if the investor wants to apply in SME IPOs, he/she can do it through the net banking portal of ICICI Bank.

ASBA stands for "Applications Supported by Blocked Accounts". At the time of bidding, investors’ account is blocked to the extent of the bid amount and debited only at the time of allotment. This facility is being offered by ICICIDirect in affiliation with ICICI Bank Limited.

In other payment options, the bid amount is debited when investors’ bid application is placed with the stock exchanges. Under the ASBA process, the amount will be debited from investors’ bank account to the extent of successful allotment at the time of allotment. Until such allotment, the amount will remain blocked in investors’ bank account.

Application under this facility can be placed only for Book Built Public Issues.

An investor can place maximum of 3 bids in an issue.

The investor with Demat account in ICICIdirect can apply in an IPO by logging in to his ICICIdirect Account. The investor needs to select IPO and then the name of the IPO in which he would like to apply. Given below is the path:

Login to ICICIdirect account >> IPO >> Name of IPO

Investor can apply in the retail section of an IPO through iDirect Portal even if he has a 2-in-1 account (Demat, Trading Accounts) with us and Bank account with third party.

Yes, the investor can revise or withdraw the bids after application. It can be done only once the order is executed. The investor needs to go to the IPO Order Book and select the Transaction Id and then click on Withdraw Application/ Revise Bid. The application in the non- institutional category cannot be withdrawn but can only be revised.

However, this needs to be done during the issue itself and cannot be done after the issue is closed. In case of ASBA applications, for upward revision of bid, additional lien will be marked to the extent of incremental amount. However, in case of downward revision, differential money blocked earlier will not be released. Such amount, if any, will be released after allotment

No, one person cannot apply multiple times with same Demat/PAN for an IPO. If an investor applies in an IPO though multiple applications with same Demat account or same PAN Number, his applications will be rejected.

If an investor would like to place order for multiple applications, he/she can apply with his/her family member's name. But, all eligible family members should have a Demat account and a PAN number.

In cases where issue is over-subscribed, bidding for more than 1 lot from the same account doesn’t help as maximum of only 1 lot can be provided against each application. However, if the investor applies for 1 lot from different accounts, the probability of allocation of shares increases.

Download Our App

Download App
market app
 

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.