LIC IPO: Price band, important dates, GMP and all you need to know

• LIC IPO is all set to open its IPO next week and is expected to raise around ₹21,000 crore.
• The government is selling 22.13 crore shares in the life insurance behemoth.
• The life insurance company will open its IPO on May 4 and close on May 9.

Finally, the most awaited initial public offering (IPO) of state-owned insurance behemoth Life Insurance Corporation of India (LIC) announced that its public issue is opening next week from May 4 and closing on May 9.

The price band is fixed at ₹902-₹949.

The government is selling 22.13 crore shares in the company, which has been cut down from 31 crore equity shares it confirmed in the draft red herring prospectus (DHRP) in February.

The unexpected Russia-Ukraine conflict, which triggered one of the huge market crashes led to the delay in the IPO.

The red herring prospectus (RHP) that came out today states that a special discount of ₹45 is being offered to retail investors and employees of LIC. And a discount of ₹60 per share is being offered to about 30 crore policyholders associated with the life insurer. For application under policyholder quota, one should have a demat account and the PAN number should be linked with the policy.

Meanwhile, shares of the company are already demanding a premium of ₹25 per share in the grey market.

While LIC is still the biggest IPO in the history of the stock market, its issue size is close to that of Paytm, the second largest issue ever.

$LIC.P IPO! The biggest event we can have for the Indian economy is around the corner. We can make all the talks about previous IPOs, How the market reacted and what not but let's take a look at the business this giant mammoth is in.Life Insurance! $LIC.P has seen a drastic fall back in 2009 - 2010 when we have seen some policy changes related to various products and we are still below that level of penetration. The current penetration of the Insurance business in India is at 4.2% with $LIC.P contributing 3.2% and the remaining was Non-Life. The life insurance industry has seen a growth of 5.8% in the First half of FY22 as compared to 0.8% for the same period last year while we have also seen the premium of Life Insurers increase by 6.94%. The Life Insurance industry is expected to grow at a CAGR of 5.3% from 2019 to 2023 while Life Insurance Industry is expected to reach US$318 Billion by FY31! So, Where Does $LIC.P Fit in?

— (@Chartistician) April 27, 2022

LIC has the largest individual agent network of 8.96 lakh, which dropped from 10.86 lakh as of March 31, 2021. However, things have changed in the last few years because of the pandemic. While individual agents bring 96% of new business premiums to the life insurer, many of them are no longer working for the company.

Here are some important dates of the IPO:


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