Tag: life insurance

  • All You Need to Know About the LIC IPO

    Introduction

    The dates for the launch of the LIC’s IPO have finally been fixed. According to the latest reports, the LIC IPO is slated to open on 4 May 2022 and close on 9May 2022. This news has brought some respite for the investors whose anxiety levels reached sky-high after waiting for the IPO for quite some time now. This IPO was earlier supposed to get launched before 31March 2022. However, the ongoing Russia-Ukraine war led to the delay of the launch date.

    Talking about the LIC IPO, it is expected to be India’s biggest IPO to date, surpassing PayTM’s IPO. The total valuation of this IPO is expected to be around Rs. 21,000 crore and the LIC being India’s largest and world’s fifth-largest life insurance company could create a stir in the Indian stock markets. Continue reading to know everything about the LIC IPO in detail.

    The offer details

    As mentioned, the LIC IPO is expected to be India’s biggest-ever IPO with a valuation of approximately Rs. 21,000 crores. It would surpass the PayTM IPO, which is the current record holder with a valuation of Rs. 18,300 crore. The government of India, which owns a 100% stake in the LIC, is planning to sell a 3.5% stake in the company through this IPO. This is a decline from the earlier estimates of the sale of a 5% stake.

    As per the Draft Red Herring Prospectus (DRHP) filed by the LIC with the Securities and Exchange Board of India (SEBI), the IPO could consist of 31,62,49,885 equity shares with a face value of Rs. 10 per share. Fifty percent of this public issue would be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Buyers (NIBs), and the remaining 35% for retail investors.

    IPO Timeline

    Although the exact IPO timeline is yet to be announced by the issuing company, the tentative dates for closing and opening of the IPO are out to the public. If everything goes well, the LIC IPO could open on 4May 2022 and close on 9 May 2022. This IPO was earlier scheduled for launch in March 2022, but the ongoing Russia-Ukraine war led to its postponement.

    The tentative IPO allotment date, refund date, and listing date are yet to be announced. The IPO could be priced in the range of Rs. 950 to Rs. 1,000 per equity share.

    Details of the issuing company

    The issuing company of the IPO is the Life Insurance Corporation (LIC) of India. At present, it is India’s largest life insurance company and the fifth-largest globally. As per the DRHP, the embedded value of the LIC is approximately Rs. 5.4 lakh crore. However, going by the government’s estimates of a 3.5% stake worth Rs. 21,000 crore, the company’s valuation could turn out to be more than Rs. 6 lakh crore.

    The LIC has a giant market share of 66.2% in India in terms of new business premium and 74.6% in terms of the number of individual policies issued. It also has a significant global presence with the total Assets Under Management (AUM) worth Rs. 31 lakh crore. LIC is also the largest institutional investor in India with a total investment of approximately Rs. 120 lakh crore.

    The total profits generated by the LIC during the financial years 2019-20, 2020-21, and 2021-22 stood at Rs. 2627.30 crore, Rs. 2710.40 crore, and Rs. 29,74.40 crore, respectively.

    Strengths and Weaknesses

    Let’s evaluate the strengths and weaknesses of the LIC IPO. Below are the strengths of this IPO, which is touted as India’s biggest-ever IPO:

    LIC is the leading life insurance company in India and fifth-largest globally
    The company offers a wide range of life insurance products to cater to varied public needs
    It has a very strong distribution network with 1.34 million agents, 2048 branches, and 174 alternate channels across India
    Largest asset manager in the country with a proven track record
    Below are the risks and weaknesses:

    The COVID-19 pandemic has impacted the business adversely
    Any unfavourable publicity can impact the brand name
    Adverse variation in persistency metrics could impact the revenues
    Rise of several private players in the segment
    Market downswings can highly impact the company’s valuation
    The final words

    The LIC IPO has already created a euphoria among the investors and it could shake up the Indian stock market once it gets launched. If you want to subscribe to the LIC IPO, you can apply for it via a demat account. You can open your demat account for free with ICICIdirect, one of the leading stockbrokers in India. Moreover, you can also choose a brokerage structure as per your requirements. Being a full-service broker, they provide advisory services along with trading facilities.

    This content is distributed by Icici direct. No TNIE Group journalist is involved in the creation of this content.

  • All You Need to Know About the LIC IPO

    Introduction

    The dates for the launch of the LIC’s IPO have finally been fixed. According to the latest reports, the LIC IPO is slated to open on 4 May 2022 and close on 9May 2022. This news has brought some respite for the investors whose anxiety levels reached sky-high after waiting for the IPO for quite some time now. This IPO was earlier supposed to get launched before 31March 2022. However, the ongoing Russia-Ukraine war led to the delay of the launch date.

    Talking about the LIC IPO, it is expected to be India’s biggest IPO to date, surpassing PayTM’s IPO. The total valuation of this IPO is expected to be around Rs. 21,000 crore and the LIC being India’s largest and world’s fifth-largest life insurance company could create a stir in the Indian stock markets. Continue reading to know everything about the LIC IPO in detail.

    The offer details

    As mentioned, the LIC IPO is expected to be India’s biggest-ever IPO with a valuation of approximately Rs. 21,000 crores. It would surpass the PayTM IPO, which is the current record holder with a valuation of Rs. 18,300 crore. The government of India, which owns a 100% stake in the LIC, is planning to sell a 3.5% stake in the company through this IPO. This is a decline from the earlier estimates of the sale of a 5% stake.

    As per the Draft Red Herring Prospectus (DRHP) filed by the LIC with the Securities and Exchange Board of India (SEBI), the IPO could consist of 31,62,49,885 equity shares with a face value of Rs. 10 per share. Fifty percent of this public issue would be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Buyers (NIBs), and the remaining 35% for retail investors.

    IPO Timeline

    Although the exact IPO timeline is yet to be announced by the issuing company, the tentative dates for closing and opening of the IPO are out to the public. If everything goes well, the LIC IPO could open on 4May 2022 and close on 9 May 2022. This IPO was earlier scheduled for launch in March 2022, but the ongoing Russia-Ukraine war led to its postponement.

    The tentative IPO allotment date, refund date, and listing date are yet to be announced. The IPO could be priced in the range of Rs. 950 to Rs. 1,000 per equity share.

    Details of the issuing company

    The issuing company of the IPO is the Life Insurance Corporation (LIC) of India. At present, it is India’s largest life insurance company and the fifth-largest globally. As per the DRHP, the embedded value of the LIC is approximately Rs. 5.4 lakh crore. However, going by the government’s estimates of a 3.5% stake worth Rs. 21,000 crore, the company’s valuation could turn out to be more than Rs. 6 lakh crore.

    The LIC has a giant market share of 66.2% in India in terms of new business premium and 74.6% in terms of the number of individual policies issued. It also has a significant global presence with the total Assets Under Management (AUM) worth Rs. 31 lakh crore. LIC is also the largest institutional investor in India with a total investment of approximately Rs. 120 lakh crore.

    The total profits generated by the LIC during the financial years 2019-20, 2020-21, and 2021-22 stood at Rs. 2627.30 crore, Rs. 2710.40 crore, and Rs. 29,74.40 crore, respectively.

    Strengths and Weaknesses

    Let’s evaluate the strengths and weaknesses of the LIC IPO. Below are the strengths of this IPO, which is touted as India’s biggest-ever IPO:

    LIC is the leading life insurance company in India and fifth-largest globally
    The company offers a wide range of life insurance products to cater to varied public needs
    It has a very strong distribution network with 1.34 million agents, 2048 branches, and 174 alternate channels across India
    Largest asset manager in the country with a proven track record
    Below are the risks and weaknesses:

    The COVID-19 pandemic has impacted the business adversely
    Any unfavourable publicity can impact the brand name
    Adverse variation in persistency metrics could impact the revenues
    Rise of several private players in the segment
    Market downswings can highly impact the company’s valuation
    The final words

    The LIC IPO has already created a euphoria among the investors and it could shake up the Indian stock market once it gets launched. If you want to subscribe to the LIC IPO, you can apply for it via a demat account. You can open your demat account for free with ICICIdirect, one of the leading stockbrokers in India. Moreover, you can also choose a brokerage structure as per your requirements. Being a full-service broker, they provide advisory services along with trading facilities.

    This content is distributed by Icici direct. No TNIE Group journalist is involved in the creation of this content.

    Introduction

    The dates for the launch of the LIC’s IPO have finally been fixed. According to the latest reports, the LIC IPO is slated to open on 4 May 2022 and close on 9May 2022. This news has brought some respite for the investors whose anxiety levels reached sky-high after waiting for the IPO for quite some time now. This IPO was earlier supposed to get launched before 31March 2022. However, the ongoing Russia-Ukraine war led to the delay of the launch date.

    Talking about the LIC IPO, it is expected to be India’s biggest IPO to date, surpassing PayTM’s IPO. The total valuation of this IPO is expected to be around Rs. 21,000 crore and the LIC being India’s largest and world’s fifth-largest life insurance company could create a stir in the Indian stock markets. Continue reading to know everything about the LIC IPO in detail.googletag.cmd.push(function() {googletag.display(‘div-gpt-ad-8052921-2’); });

    The offer details

    As mentioned, the LIC IPO is expected to be India’s biggest-ever IPO with a valuation of approximately Rs. 21,000 crores. It would surpass the PayTM IPO, which is the current record holder with a valuation of Rs. 18,300 crore. The government of India, which owns a 100% stake in the LIC, is planning to sell a 3.5% stake in the company through this IPO. This is a decline from the earlier estimates of the sale of a 5% stake.

    As per the Draft Red Herring Prospectus (DRHP) filed by the LIC with the Securities and Exchange Board of India (SEBI), the IPO could consist of 31,62,49,885 equity shares with a face value of Rs. 10 per share. Fifty percent of this public issue would be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Buyers (NIBs), and the remaining 35% for retail investors.

    IPO Timeline

    Although the exact IPO timeline is yet to be announced by the issuing company, the tentative dates for closing and opening of the IPO are out to the public. If everything goes well, the LIC IPO could open on 4May 2022 and close on 9 May 2022. This IPO was earlier scheduled for launch in March 2022, but the ongoing Russia-Ukraine war led to its postponement.

    The tentative IPO allotment date, refund date, and listing date are yet to be announced. The IPO could be priced in the range of Rs. 950 to Rs. 1,000 per equity share.

    Details of the issuing company

    The issuing company of the IPO is the Life Insurance Corporation (LIC) of India. At present, it is India’s largest life insurance company and the fifth-largest globally. As per the DRHP, the embedded value of the LIC is approximately Rs. 5.4 lakh crore. However, going by the government’s estimates of a 3.5% stake worth Rs. 21,000 crore, the company’s valuation could turn out to be more than Rs. 6 lakh crore.

    The LIC has a giant market share of 66.2% in India in terms of new business premium and 74.6% in terms of the number of individual policies issued. It also has a significant global presence with the total Assets Under Management (AUM) worth Rs. 31 lakh crore. LIC is also the largest institutional investor in India with a total investment of approximately Rs. 120 lakh crore.

    The total profits generated by the LIC during the financial years 2019-20, 2020-21, and 2021-22 stood at Rs. 2627.30 crore, Rs. 2710.40 crore, and Rs. 29,74.40 crore, respectively.

    Strengths and Weaknesses

    Let’s evaluate the strengths and weaknesses of the LIC IPO. Below are the strengths of this IPO, which is touted as India’s biggest-ever IPO:

    LIC is the leading life insurance company in India and fifth-largest globally
    The company offers a wide range of life insurance products to cater to varied public needs
    It has a very strong distribution network with 1.34 million agents, 2048 branches, and 174 alternate channels across India
    Largest asset manager in the country with a proven track record
    Below are the risks and weaknesses:

    The COVID-19 pandemic has impacted the business adversely
    Any unfavourable publicity can impact the brand name
    Adverse variation in persistency metrics could impact the revenues
    Rise of several private players in the segment
    Market downswings can highly impact the company’s valuation
    The final words

    The LIC IPO has already created a euphoria among the investors and it could shake up the Indian stock market once it gets launched. If you want to subscribe to the LIC IPO, you can apply for it via a demat account. You can open your demat account for free with ICICIdirect, one of the leading stockbrokers in India. Moreover, you can also choose a brokerage structure as per your requirements. Being a full-service broker, they provide advisory services along with trading facilities.

    This content is distributed by Icici direct. No TNIE Group journalist is involved in the creation of this content.

  • Union government mulls permitting foreign investment in LIC

    By PTI

    NEW DELHI: The government is mulling allowing foreign direct investment (FDI) in the country’s largest insurer LIC, a move which would help overseas investors take part in the company’s proposed mega IPO, sources said.

    The proposal is under discussion between the Department of Financial Services and the Department of Investment and Public Asset Management (DIPAM).

    “Discussions have been going on for the proposal for the last few weeks. It would also go for inter-ministerial discussions and would also require Cabinet nod,” a source said.

    According to the current FDI policy, 74 per cent foreign investment is permitted under the automatic route in the insurance sector.

    However, these rules do not apply to the Life Insurance Corporation of India (LIC), which is administered through a separate LIC Act.

    As per Sebi rules, both FPI and FDI are permitted under public offer.

    However, sources said since LIC Act has no provision for foreign investments, there is a need to align the proposed LIC IPO with Sebi norms regarding foreign investor participation.

    The Cabinet had in July approved the initial public offering (IPO) of LIC.

    The DIPAM had in January appointed actuarial firm Milliman Advisors LLP India to assess the embedded value of LIC ahead of the IPO, which is touted to be the biggest public issue in Indian corporate history.

    The government expects to come out with the LIC IPO by the end of the current fiscal.

    Up to 10 per cent of the issue size would be reserved for policyholders.

    The government has already brought in the required legislative amendments in the LIC Act for the proposed IPO.

    Deloitte and SBI Caps have been appointed as pre-IPO transaction advisors.

    As many as 16 merchant bankers are in the race to manage the mega initial public offering.

    These bankers will be making a presentation before DIPAM during the week.

    Seven international bankers, including BNP Paribas, Citigroup Global Markets India and DSP Merrill Lynch Ltd (now known as BofA Securities), will make presentations.

    The listing of LIC will be crucial for the government to meet its disinvestment target.

    The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sales and privatisation.

    Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling the government’s stakes in public sector banks and financial institutions.

    The remaining Rs 75,000 crore would come as CPSE disinvestment receipts.