The wait for India’s biggest IPO is over. Life Insurance Corporation of India Ltd is coming out with its IPO in the month of May 2022. As per the reports, the LIC IPO is finalized to raise an issue of Rs ₹21,008.48 crores. With this IPO, the government-owned company is keen on taking a valuation close to Rs 6 Lakh crores. At this valuation, the company will stand in line with India’s biggest publicly listed companies such as Reliance Industries Ltd, Tata Consultancy Services Ltd and HDFC Bank Ltd.
04th May 2022
09th May 2022
₹10 per equity share
IPO Price Band
₹902 to ₹949 per equity share
Minimum Order Quantity
Retail & Employee Discount :
Policyholders Discount :
LIC or the Life Insurance Corporation of India Ltd is an Indian, government-owned statutory insurance and investment corporation. The insurance company was established in 1st September 1965, under the nationalized Life Insurance of India Act. LIC was a result of the merger of more than 245 insurance and provident societies. At present, LIC is the biggest insurance company in India, having 66% market share in the industry. As of 2020, the number of policyholders stood at 28.9 crores, making it the King of the Insurance Industry in India. As of March 31, 2020 it had total assets of Rs 37.75 lakh crore and equity AUM of Rs 6.63 lakh crore.
According to the DRHP filed with SEBI, LIC has proposed underlying objectives for its IPO
Following are the set of reasons why we think you should be interested in investing in LIC IPO
|Particulars||As at / for the year ended|
March 31, 2021
|As at / for the year ended|
March 31, 2020
|As at / for the year ended|
March 31, 2019
|Total Net Profits||1,913.12||-117,633.77||-43,796.01|
|Net cash inflow / (outflows)||3,994.38||96,362.97||127,050.01|
|Group’s Share in|
Profit/(Loss) in its associates
The LIC IPO is stated to be releasing in the last week of April 2022. However, the same hasn’t been confirmed by the insurance company.
As per the DRHP filed by the insurance company, the total number of shares issued under Offer for Sale stands at 316,249,885 of face value ₹10 per equity share.
Anyone who wants to invest in the LIC IPO can be part of the IPO listing. However, participants who hold LIC policies and have linked their PAN Card number with their policy are stated to get special reservation in the IPO.
To apply for the IPO, you will have to open a DEMAT Account with a SEBI registered Broker, such as Motilal Oswal Financial Services Ltd.
To apply for a Free DEMAT Account online, click here.
According to the DRHP filed by the company, it is said that 10 percent of the total shares for sale will be reserved for LIC policyholders.
Under the special category, LIC policyholders are eligible to apply for the IPO, up to a sum of ₹2,00,000.
Policyholders in the LIC IPO are also entrusted to be entitled to have up to 10 percent discount on the issue amount.
The quota reservation for policyholders is only applicable for individuals who have purchased the LIC policy on or before 13th February 2022. Individuals who have purchased the LIC policy after February 2022, are not eligible to get a reservation on IPO.
To be eligible to get a reservation in the IPO, it is necessary that policyholders link their PAN card number with their policy numbers before 28th February 2022.
If two or more individuals hold joint policy then the individuals can apply for the IPO separately, given they have linked their PAN with the Policy.
Group Policy Holders cannot apply for IPO under reservation quota.
If two or more individuals hold a Joint Demat Account, only the Primary Account holder is allowed to apply for the IPO. Secondary holders are not permitted to apply for the IPO separately.
Yes, absolutely. According to the SEBI ICDR Regulations, any company cannot issue no equity shares in physical form and the equity shares can only be issued in dematerialized form. Hence, it is mandatory for all investors, who wish to apply for the IPO, to have a DEMAT Account.