LIC is one of the leading companies in India that provides insurance since the 90s and has around 66% of the market share in the insurance sector. The company has a niche segment in the country and offers various insurance products like health insurance, life insurance, saving, pension, annuity, and term insurance which falls under the category of participating insurance products and non-participating products.
LIC is a company of products of part insurance and investment. The plans of LIC include both investment and insurance and the returns are usually guaranteed. LIC has also slowly expanded the policy business and has entered into LIC Pension Fund, LIC Housing Finance, and LIC Mutual Fund.
LIC is said to have around 13.5 lakh agents which is one of the highest in the country since all the other 20 private companies that are insurance providers have around 11 lakh which is way too big a difference and the agents of LIC are majorly responsible for the expansion of the entire LIC chain.
As mentioned earlier LIC offers guaranteed returns that are usually fixed andalso have coverage of life insurance which is why it’s a top choice among the policyholders or consumers.This is one of the biggest reasons that LIC has one of the maximum numbers of agents and thus they easily guarantee the expansion and growth of the entire business.
LIC IPO DATE AND PRICE BAND 2022
IPO stands for Initial Public Offering and refers to the first time a company issues its shares publicly and gives a chance to public investors to own shares in that company.
According to the LIC IPO news and as announced in the budget speech 2022 by the finance minister Nirmala Sitharaman that the IPO of LIC is expected shortly and will be one of the biggest IPO India has ever seen has given light to all the rumours regarding the release and LIC IPO date.
The DRHP i.e., Draft Red Herring Prospectus of LIC IPO got filed in this February month and the government would likely to sell 5 per cent stake or 31.6 crore shares.
As said, the LIC IPO date (open and close) is final, The government is agree to sell a 3.5 per cent stake in LIC via the IPO which will hit the market in the first week of the May month, though a new confirmation are that the LIC IPO date will be open 4th May 2022 and close on 9th May 2022. Lic IPO price band set range of 902 INR to 949 INR per share.
LIC OF INDIA IPO NEWS
According to the sources, the IPO is expected to reserve around 35 percent of the initial public offer for retail investors, 10 percent for LIC policyholders,and 5 percent for its employees and that’s the reason the IPO of LIC is much awaited among all the sections.
Some of the key LIC IPO highlights are
- The LIC IPO date is open on 4th May 2022 and close on 9th May 2022 and for retail investors, 35% is reserved in the IPO of LIC. The category of retail investors includes everyone except policyholders and their employees. In this category, both the employees and policyholders of LIC can apply.
- For LIC policyholders the reservation in the IPO is around 10 percentand those whose policies are before 13th February 2022 will only be able to apply for the IPO. Also, for the policyholders, the criteria are that their PAN should be linked with their policy and if not, then this process needs to be get done before the end of February.
- There is a maximum limit of investment for everyone in this IPO wherein policyholders, retail investors, and employees can invest an amount of 2 lakh rupees at maximum.
- For someone who is not employed at LIC but is a policyholder can make a maximum investment of 4 lakh rupees of which 2 lakhs each falls under the category of retail and being a policyholder.
- Other criteria are that LIC employees can invest a maximum amount of 6 lakh rupees given that they must have a LIC policy and thus the category will be 2 lakhs each under policyholder, employee, and retail category.
- For a policyholder who has a joint Demat account, can apply under the policyholder category only when he/she is the primary holder of that Demat account. So, when the policyholders of LIC are primary Demat account holders in a joint Demat account then only they shall apply else rejection of the application shall be done.
- Also, if someone has separate Demat accounts but are joint policyholders then under the policyholder’s category, they both can apply.
HOW TO APPLY FOR LIC IPO?
As mentioned earlier the IPO which will hit the market in the first week of the May month, though a new confirmation are that the LIC IPO date will be open 4th May 2022 and close on 9th May 2022 officially by the government of India.
There are some simple and easy steps by which one can easily go for LIC IPO apply-
- The first and foremost requirement to apply for LIC IPO is that you need to have a Demat account.
- In case you don’t have one, you can get it opened in the bank of your choice by filling out the “Demat Account opening form” and getting it submitted to the respective branch of your bank.
- Post this, complete the requirements for KYC and go ahead with the verification procedure.
- After this you will have to sign an agreement and then you will get a BO ID number post which you can finally access your Demat Account.
- Once the account is opened, log in to it, and in the current IPO section select the issue.
- Then you will have to enter the number of lots and then the price at which you want to gofor the IPO.
- Once this is done, fill in your UPI ID and submit it.
- When the submission is done,it ensures that your bid is placed with the exchange.
- After this a notification will be received wherein you can block funds in the UPI app.
- To block the funds for IPO, approve the request on your UPI.
IS LIC IPO GOOD OR BAD?
At present, it is really difficult to predict LIC IPO benefits and cons since it is dependent on various factors like-
- Situation of the market on the ‘listing day’ is an important factor.
- Offered discounts in the IPO.
- More demand as compared to the supply i.e., oversubscription of the IPO.
- Price of issue.
- Large size of LIC IPO as compared to the ones till date.
- There is also a high risk regarding the investment in the IPO since a lot of variation occurs in the price of the share during the initial week of its listing and thus one can lose or gain a big amount of money, so it is highly risk able.
- There is no surety to how an IPO will open in the market once released and sometimes IPO with great hype ends up opening with loss as in the case of the IPO of Paytm.
Despite all the uncertainties one can apply for the IPO of LIC as according to the LIC IPO news it will be one the biggest IPO in the history of India and is said to be the 5th largest in the world in terms of insurers IPO. The company has by far raised 12,000 crores and has 280 million policies which ultimately increases the demand for slots for the IPO of LIC.
Though it’s not sure about the release of the LIC IPO date, there are high chances of oversubscription for the slots once the release happens and thus only a few lucky will get a chance to own shares in the company.
So, if you are willing to own shares of LIC IPO, you must apply accordingly and get all the formalities done before time.