LIC IPO

Looking forward to LIC IPO date, review and other related information? 

Here, is the full guide that provides you the information right from scratch and also how it can affect the interest of the policyholders. 

Before getting started it is good to gain a little idea of what is IPO.

IPO or say, Initial Public Offer is the process by which the business entity starts selling its stocks to the general public thus going public. 

The issue of the IPO will enable the company to raise its capital from the public investors. Also, it offers permission to trade in the open market.

By going public, LIC would be able to reap financial gain to the public, maintaining shareholder value through corrective measures, bringing more transparency in corporate administration, etc. 

Dig more about the upcoming LIC IPO in the information below.

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LIC IPO Review

Life Insurance Corporation of India is the largest institutional investor and insurer.

Seeing its growth and performance, the government of India now decides to sell the part of its holding in LIC through Initial Public Offer.

LIC is the only insurer that offers the sovereign guarantee that ensures the complete security of policyholders. 

In the latest presentation of the budget 2020-21, Finance Minister Nirmala Sitharaman announced the sale of a stake in LIC through IPO in the next fiscal.

Here is the financial analysis statement of LIC. 

The period of April to December 2019, LIC collected the premium of Rs 1.37 lakh crore and showed a rise of 45.5% year on year. 

The largest insurer industry that entered privatization in 2020 it is able to make up the 70.52% market share till December 2019. 

In its tenure of 10 years FY09 and FY19, LIC showed a big jump of 291 percent in its income. By the end of 2019, the income of LIC from investment was equal to Rs 2,21.573.72 crore.

There is a good increase in the rental income of the LIC which was generated from the estate portfolio. There was around 46.75 crore hike in just one year.

By reaching this value, LIC was able to meet 90.18 percent of its yearly target.

Apart from this, another profit share of the LIC comes from life insurer books. The company earns around also earn Rs 18,000 to Rs25,000 crore in equity profit.

In FY19, the equity profit was around 23,600 crore. This value was little less than the FY18  which was  25,650 crores.

Taking the total income (premium and investment), the net income of LIC is Rs 5.61 lakh crore in FY19 which was around 180% more than the income of FY09.

 

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LIC IPO Promoters

The promoter is an individual or company that plays a vital role in raising money.

The Government of India is contributing its 100% and thus is the promoter of the LIC IPO.

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LIC IPO Issue Date 

Although the LIC IPO was declared in the latest budget in February 2020, the exact date of the IPO is not disclosed yet. 

The government has recently thrown light on the listing LIC on the stock exchanges. With this, Life Insurance Corporation will go for an Initial Public Offer.  

 

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LIC IPO Market Lot

While bidding for the IPO it is essential for the investor to know about the market lot and the minimum order quantity.

As depicted from the name, the market order quantity is the minimum number of shares that the investor can apply while bidding in IPO.

In case, the investor is willing to bid for more shares, then he has to apply in multiples of the IPO market lot.

Get the information of the LIC IPO Market Lot in the table below

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LIC IPO Allotment & Listing

IPO Basis of Allotment is the document published by the registrar of an IPO after finalizing the share allocations.

The IPO allotment and listing offer information about the demand for the IPO stock among the public.

Here you can find the information about the LIC IPO Allotment & Listing.

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LIC IPO Grey Market Premium

The IPO grey market is defined as a platform where buying and selling are done beyond an authorized channel or authority.

In short, it is an unofficial way to trade the share of the company.

Currently, LIC IPO Grey Market Premium is ₹1000

Kostak is ₹3000 

Subject to Sauda is ₹10000

However, the grey market movement of the IPO changes at a faster rate and is highly volatile. It is, therefore, challenging to make an investment decision on gray market IPO rates.

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LIC IPO Reviews & Ratings

While making a decision of investment in LIC IPO, it is essential to know the reviews and ratings of the company.

Here are the LIC IPO ratings and reviews provided by various financial institutions, brokers and other SEBI registered analysts in different criteria.

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LIC IPO: How to Apply

For all those investors, who have a Demat account, then they can avail of the online IPO facility called ‘ASBA‘ from banks.

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In case you are looking to get started with your stock market investments, let us assist you in taking the next steps ahead.

Open a Demat Account for free. 

Just fill in a few basic details here to get started:

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You can contact your respective broker to apply for LIC IPO.

Apply for LIC IPO through ASBA

ASBA or Application Supported by Blocked Amount is an application provided by a bank that enables you to apply for IPO.

In this, your bank will meet the expense requirement of the amount that is required for applying for the IPO and the money from your account will only be transacted when you get the final allotment of shares.

There are more than 30 banks that offer the ASBA facility. This includes all the major banks including Citi Bank, Bank of Baroda, Axis Bank, Central Bank of India, Corporation Bank, ICICI Bank, IDBI Bank Limited, Indian Bank, Punjab National Bank, etc.

These banks are authorized to block the amount spend on IPO application until the allocation is finalized.

To apply for LIC IPO through ASBA the investors must meet the basic eligibility criteria like the investor:

• Is applying for the shares or securities worth Rs 2 Lakh.
• Must have a Demat account.
• Should not bid under any reserved category.
• We should promise not to revise the bid.
• Apply through the bank that is maintained with the SCSBs.
• Hold shares in his Demat form and apply for entitlements in the issue in Demat form.

How to apply the LIC IPO through ASBA?

You can apply for LIC IPO through ASBA both by online and offline methods.

For offline mode: 

You are required to fill ASBA form with some essential details like:

• Name
• PAN number
• Demat Account Number
• Bid Quantity
• Bid Price
• Submit the form to the bank.
• The bank will further forward it to the bidding platform where it is processed.

For online method:

• To apply for LIC IPO through ASBA you must have active online banking.
• Sign in to your account.
• On the menu page, click on the request button.
• This will redirect you to the link called ‘IPO Application’
• Select IPO which you want to apply and place a bid (can enter up to 3 bids).
• Fill other Depository details.
• Confirm your order.

Also, you can apply for LIC IPO through different discount brokers or full-service brokers. Here are some of the top stockbroker with whom you can open the Demat account to apply for the IPO.

Apply LIC IPO With Zerodha Kite

Apart from ASBA, you can also apply for the LIC IPO through Zerodha Console.

As per the SEBI guidelines, it is now mandatory for the upcoming IPOs to be supported by UPI 2.0 and thus Zerodha now supports IPO application.

It has made the process quick and simple.

For applying for the IPO through Zerodha follow the steps below:

• Login to Console
• Select ‘IPO’ in the Portfolio menu
• Select the LIC IPO  from the list of open issues.
• Enter your Zerodha UPI ID and click on verify.
• Once verified, place a bid in the quantity that is a multiple of lot size, select the investor type.
• Click on the checkbox (this is to confirm that you read RHP and other documents).
• Submit your details.

LIC IPO With Motilal Oswal 

If you are already a client or are wondering to open a Demat account with Motilal Oswal then you can apply for IPO in two different ways.

1. Through Website or Mobile App

The trading website or mobile app of the Motilal Oswal gives you the provision to apply for IPO.

• To apply, get yourself registered for an online IPO product.
• For registration, visit the local branch and submit the application form.
• Post-registration, you can apply for IPO in just a few clicks.

2. By Visiting Motilal Oswal Branches

Apart from the online method, you can also apply for IPO offline by visiting the Motilal Oswal branch nearby.

• Visit the nearby branch.
• Fill the ASBA application form.
• Enter information like Bank Account, PAN number, and Demat Account.
• The broker than send the application to the exchange for further processing.

There are many more brokers who offer a convenient way to apply for the IPO.

Start exploring your broker and ensure that they offer such services.

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LIC Company Information 

Life Insurance Corporation, LIC, was nationalized in 1956 when 245 insurance companies were amalgamated and offered fund societies. 

LIC came into force on September 1, 1956, under LIC Act 1956 and began its journey with the initial capital of Rs 5 crore from the Government of India. The major objective of the company was to spread the message of insurance to every nook of the country. 

Since then the company stands best on meeting its objective and growing continuously. 

In the year 2009, the Life Insurance Corporation Amendment Bill (2009) was passed that enhanced the paid-up capital of LIC to 100 crores.

No wonder, LIC is the largest financial institution in India that would become the top listed company of the country after getting listed on the stock exchange points.

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LIC IPO: A Boon or A Bane

LIC is growing at a faster rate or say it is the best phase of the company as far as growth is concerned.

This year the LIC business has crossed the target of Rs 1.5 lakh crore for the first time.

Along with this, the market share of the company in terms of premium stands high at 80%.

Coming back to the listing of the company, it will neither bring the positive nor the negative impact on the policyholder.

The LIC is in investment for many years and had played a great role in a balanced manner. Since yet, no one questioned its trustworthiness or investment capabilities.

All these are because of the strict guidelines and multilevel monitoring system that the company follows.

Also, the LIC IPO will be kept under the monitoring and scanning system of SEBI that brings more transparency in investment.

In all, the listing will bring more transparency to great extent and help shareholder to monitor their day to day activities thus adding more stability to the corporation in the long run.

At last, the LIC Chairman M.R. Kumar kept some facts regarding the LIC IPO. These are:

• LIC IPO is not going to impact employees or customers in any way.
• It will retain the sovereign guarantee even after LIC IPO.
• LIC is being under privatization for around a decade but still, the market share of the company in terms of first premium income and policies in January 2020 was 80% and 77.6%.
• This points towards the confidence that the public has over the LIC of India.

Thus, if you are looking for a secure platform to invest your fund, then this is one of the best options you must go for.

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LIC IPO FAQs

#What is LIC IPO?

The Government of India after analyzing the LIC performance has now put the proposal to sell the part of holding in LIC through IPO.

#When will the LIC IPO open?

As per the latest updates, the LIC IPO is more likely to open in the second half of the FY 2020-21.

#Under which category, eligible candidates can bid in LIC IPO?

For all the LIC employees eligible for the IPO, can bid under three categories:

• Retail Category (if an investment is less than Rs 2 lakh)
• Shareholder Category (if an investment is less than Rs 2 lakh)
• Employee Category

#How can I apply for the LIC IPO?

You can apply for the LIC IPO in the following ways:

• Using ASBA online (through popular banks; HDFC, ICICI, SBI, etc)
• Through Stock Brokers Trading Account (Zerodha, Sharekhan) using UPI as a payment method.

#What is the most expected date for LIC IPO?

LIC IPO expected date is in the month of August and September 2020. These months are tentative and can be changed in the future.

 

 

In case, you are looking forward to learn more, feel free to contact us.