Monday, February 03, 2020

LIC IPO Date, Review, Price, Form & Market Lot Details

LIC is going to be one of the biggest IPO ever launched in India. The LIC IPO date is not announced yet as the center is planning to launch the LIC IPO soon. As per the market speculations LIC IPO to raise ₹80000 to ₹1 Lakh crore.
 
Life Insurance Corporation of India aka LIC IPO is going to be a reality soon. In Budget 2020-2021 Nirmala Sitharaman said that "LIC to Go Public". The LIC IPO will be one of the biggest IPO in the Indian Market. LIC to sell their 10% stake via IPO to list on NSE and BSE. The IPO is a part of disinvestment of Government stack in the company. It will a great opportunity for the retail investors and employees to invest in the company for a longer term and short term. As per the speculations the LIC Policy Holders may get the quota to apply the LIC IPO.

In Budget 2020-2021, Indian Finance Minister Nirmala Sitharaman said: Listing of companies on stock exchanges disciplines the company and provides access to financial markets and unlocks its value. It also gives an opportunity for retail investors to participate in the wealth so created. The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer (IPO).
 
Life Insurance Corporation is controlling around 72% of the market and around 66% share in total premium collection. The valuation of the company stayed around ₹9 Lakh to ₹10 Lakh crore. The company founded way back in 1956. Its a merger of 245 insurance companies. The company had a monopoly in life insurance till 1990s, after that the government give a chance to private sector in the life insurance. They have around 2000+ branches in India with 8 zonal offices situated in Delhi, Chennai, Mumbai, Bhopal, Hyderabad, Patna, Kanpur and Kolkata. They have 100+ divisional offices, 1100+ mini offices and 1500+ satellite offices. Stay tuned for LIC IPO date, price band, and market lot details.
 
LIC IPO Updates:
  • Centre reaches out to investors ahead of LIC IPO; embedded value likely by August: Report - TimesNowNews
  • LIC IPO: Centre plans to raise up to ₹25,000 cr from over 24 anchor investors - BusinessToday
  • Modi govt begins LIC IPO process, but valuation will pose a major challenge - The Print
  • Decks cleared for 'largest ever' LIC IPO - Economic Times
  • Explained: The biggest LIC IPO that the government is set to launch - IndianExpress 




    LIC IPO Review

    • Adding Soon

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    LIC IPO Date & Price Band

     IPO Open:  -
     IPO Close:  -
     IPO Size:  Approx ₹80000 - ₹100000 Crores
     Face Value:  ₹- Per Equity Share
     Price Band:  ₹ to ₹ Per Share
     Listing on:  BSE & NSE
     Retail Portion:  35%
     Equity:  - Shares

    LIC IPO Market Lot

    The LIC IPO minimum market lot is - shares with ₹- application amount. The retail investors can apply up-to - lots with - shares or ₹- amount.
     
     Minimum Lot Size:  Minimum - Shares
     Minimum Amount:  ₹-
     Maximum Lot Size:  Maximum - Shares
     Maximum Amount:  ₹-

    LIC IPO Allotment & Listing

    The LIC IPO date is (Adding Soon) and the close date is (Adding Soon). The allotment will be finalized on (Adding Soon) and the IPO may list on (Adding Soon).
     
     Basis of Allotment:  -
     Refunds:  -
     Credit to Demat Account:  -
     Listing Date:  -

    LIC IPO Form

    How to apply the LIC IPO? You can apply LIC IPO via ASBA available in your bank account. Just go to the online bank login and apply via your bank account by selecting the LIC IPO in the Invest section. The other option you can apply LIC IPO via IPO forms download via NSE and BSE. Check out the LIC forms - click NSE Forms & BSE Forms blank IPO forms download, fill and submit in your bank or with your broker.


    LIC Company Financial Report

    As per the DRHP the company reported  ₹682 crore loss in nine months ending December 2020. The company shown a significant increase in the revenues in the pandemic with revenue increased almost three times. The loss is narrowed but the company valuations looks good and one should apply the LIC IPO with short term and long term goals.

      ₹ in Crores

    Revenue Expense PAT
    2018 ₹- ₹- ₹-
    2019 ₹- ₹- ₹-
    2020 ₹- ₹- ₹-
    2021
    ₹- ₹- ₹-

    Company Promoters

    • To be updated soon

    About LIC

    Every day we wake up to the fact that more than 250 million lives are part of our family called LIC.

    We are humbled by the magnitude of the responsibility we carry and realise the lives that are associated with us are very valuable indeed.

    Though this journey started over six decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 61 years has been a process called TRUST.
     
    The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.

    Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

    The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

    LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

    Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1381 satallite offices and the Corporate office. LIC’s Wide Area Network covers 113divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

    LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.

    From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

    » Some of the important milestones in the life insurance business in India are:

    1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

    1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.

    1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

    1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

    1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

    1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

    The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

    » Some of the important milestones in the general insurance business in India are:

    1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.

    1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.

    1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.

    1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973.

    107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

    Quick Links

    DRHP Draft Prospectus
    RHP Draft Prospectus


    LIC IPO Registrar

    To be updated soon
    Note: Check LIC IPO allotment status on - website allotment URL. Click Here

    LIC IPO Lead Managers

    • To be updated soon

    Company Address

    To be updated soon

    LIC IPO FAQs


    What is LIC IPO?

    LIC IPO is a main-board IPO. They are going to raise ₹80000 to ₹100000 Crores via IPO. The issue is priced at - to - per equity share. The IPO to be listed on BSE & NSE.

    When LIC IPO will open?

    The IPO is to open on (not announced yet) for QIB, NII, and Retail Investors.

    What is LIC IPO Investors Portion?

    The investors' portion for QIB-50%, NII-15%, and Retail 35%.

    How to Apply the LIC IPO?

    You can apply LIC IPO via ASBA online via your bank account. You can also apply ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form.

    How to Apply the LIC IPO through Zerodha?

    Log in to Console in Zerodha Website or in Application. Go to Portfolio and Click on IPO. You will see the IPO Name "LIC". Click on Bid Button. Enter your UPI ID, Quantity and Price. Submit IPO Application Form. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Zerodha.

    How to Apply the LIC IPO through Upstox?

    Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name "LIC". Click on Bid Button. Confirm your application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox.

    What is LIC IPO Size?

    LIC IPO size is ₹80000 to ₹100000 crores.

    What is LIC IPO Price Band?

    LIC IPO Price Band is ₹- to ₹-.

    What is LIC IPO Minimum and Maximum Lot Size?

    The minimum bid is - Shares with ₹- amount while maximum bid is - shares with ₹-.

    What is LIC IPO Allotment Date?

    LIC IPO allotment date is not announced yet.

    What is LIC IPO Listing Date?

    LIC IPO listing date is not announced yet. The IPO to list on BSE and NSE.

    Note: The LIC IPO price band and date will be added as it will be officially announced. The IPO grey market premium (LIC IPO GMP) will be added on the IPO grey market page as it will start)

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