LIC IPO Draft Paper Filing Likely This Month

LIC has specified that the insurance company may go ahead with its draft red herring prospectus with SEBI by this month regarding its upcoming IPO. This major announcement comes as the Indian government has confirmed that the initial share sale of LIC will be commenced before FY2022 ends.

The Centre has, in fact, disproved claims that LIC IPO will float behind schedule.

Go through the following sections to know more about LIC IPO.

Key Highlights of LIC IPO

According to sources, the Life Insurance Corporation of India (LIC) will most likely submit its DRHP with SEBI by January 2022’s third week. Officials of this company have also notified global investors regarding its heightened focus on pension, ULIPs, health insurance products and annuity.

Officials also mention that LIC is currently trying to recruit more young people to modify its operations as per the current needs.

Various other reports have suggested that LIC’s valuation will not be as much as anticipated. As per some analysts, the government may quote much conservative pricing for the company. Although LIC’s valuation will still be in several lakh crores, it will stay in the single digits. This will place it behind Reliance Industries and TCS in terms of valuation. However, a lowered valuation will not make this IPO less valuable as it will help the Indian government meet its disinvestment goal of FY2022.

Further, LIC policyholders can get the company’s shares at a discounted price. This company has set aside a part of the share for policyholders. LIC has also urged policyholders to ensure that their PAN details are updated in the corporation’s database. Further, participating in IPOs and public offer subscriptions require a DEMAT account in India. So, policyholders must ensure that they have a proper DEMAT account.

Know More About LIC

LIC features a pan India presence with a headquarter in Mumbai. As of 2020, LIC operated with more than 12 lakh agents in 2,048 branch offices distributed over 113 divisional and 8 zonal offices.

The insurance provider also has an international presence across 14 nations, including Sri Lanka, Kenya, UAE, and Bahrain.

LIC’s product mix consists of standard insurance plans, pension plans, special plans, health plans, and micro-insurance plans.

Bottom Line

LIC is a profitable insurance provider firm. It features stellar financials with a giant market share of 66.24%. Moreover, its claim settlement ratio is the highest in India at 98%. A dynamic product mix and substantial staff strength backed by a commendable market presence will fuel up the public offer of this government-backed insurance firm.

Source – News18

Frequently Asked Questions

1. What is LIC’s market share regarding the number of policies?

LIC features a 74.71% market share regarding the number of policies.

2. How many policyholders does LIC have?

As of 2019, LIC had around 290 million policyholders.

3. How much is the government planning to generate through the LIC IPO?

The government plans to raise around Rs. 80,000 crores – Rs. 1 lakh crores through this public offering.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.