LIC IPO Date, Price, Subscription, Review, All Details
IPO / January 31, 2021 / 5 minutes of reading
Here we are Discussung about the LIC IPO Open and close Date, Price band at which LIC IPO will come and Its detailed Review.
Life insurance corporation is the oldest & major insurer corporation of India, having the Market valuation of approximately 10 Lakhs Crore.
LIC IPO will be the Largest IPO of the Indian history, as the Government Will sell its 10% — 25% stake of the PSU in free floating market.
The main objective of disinvestment in LIC & to bring LIC IPO is to suck the money from the market and use it for the development purposes, and infuse some money in banking industry to make it much stable, that is the backbone of our economy.
After sucking so much money from the free floating market, one can see the money crunch in the market for few days.
LIC IPO was to Open in Late 2020, but due to COVID-19 Pandemic, it is halted for the 2021, So that economy & market becomes stable.
LIC is the largest market player in Insurance. Due to 100% of government owned PSU, LIC has built the peoples trust, and due to its large number of agents, the reach of LIC is the largest in the country, than any other insurance company in India.
LIC IPO Date
The official Date of Launching LIC IPO in the market is till not confirmed but,
LIC IPO is expected to come This year (2021) In Financial year 2021–2022, in Q3 — Q4 That if from July 2021 — Dec 2021.
IPO will be open for 3 days, and allotment finalisation after 5 days of closing the IPO subscription.
LIC IPO Price Band (Share Price)
The Price Band of LIC IPO is not Yet officially Launched. But,
LIC price band of IPO is expected to be between 14,000–15,000.
Due to this price range, everyone will be able to buy minimum quantity (market Lot).
After the launch of IPO, Government of India will have to sell 15% more stakes of LIC in the interval of upcoming 3 years, as according to the rules of SEBI, If the Government Holds to sell only 10 % of its stake In LIC.
LIC Balancesheet (Investment)
LIC Major profit comes from the Insurance Industry and Profit From investment comes at the second place.
LIC IPO GMP (Grey Market Premium)
View LIC IPO Detailed GMP Here. (GMP will start After IPO open Date will be announced).
LIC IPO Review
Advantages
1. Market sentiment is very bullish related to LIC IPO, as the subscription will go high, the allotment of LIC IPO will become difficult & due to its high demand market will move its share price in upside trend.
2. Insurance industry has not gone achieved its full potential, as in foreign countries, where everyone is aware about insurance schemes & instruments, so LIC has many growth advantages in expanding its businesses across the country at PAN INDIA level.
3. LIC has the highest reach inside the country at PAN level, than any other insurer, and advantage of having high number of agents helps the LIC a lot in selling its insurance products, Having 8 zonal offices, 100+ divisional offices, 2000+ branch offices & 12 Lakh+ agents that have reach at every part of the country.1.1 lakh+ total employees
5. LIC has also the highest presence outside the country at global presence in 14 other countries, Fiji, Mauritius, England, Bahrain, Nepal, Sri Lanka, Singapore and Bangladesh, among other.
6. market share in Insurance is highest of LIC
- First time premium holder share — 66%
- Total no. of policies — 72%
- largest number of policy holder is of LIC that 290+ million.
7. 31 Lakh crore Rs. of AUM (asset under mangement is holded by LIC)
- 20x times growth in 1980–2000
- 20x times growth in 2000–2020
8. LIC is the only PSU that fund Government and having in large profit through insurance & investment in Debt and Equity intrument.
- 70 % in Government securities
- 15% in Equity
- 10% in Bonds
- 5% in other instruments
DISADVANTAGES
1. Majorly 15% of funds are invested into Equity, which is Low investment in Equities that will lead to low investment returns as according to shareholder. The highest growth is seen in equity funds. thus, another turn of this is that it gives stability to the LIC.
2. Having the tag of PSU on LIC that show Low growth rate as compared to private insurance firms.
3. Many bad investments have done by LIC (like DHFL & YES BANK) which has lead to Increase in percentage of NPA.
4. LIC Has the highest number of Claims settlement ratio in the insurance sector, that harms the shareholders sentiments of paying more to its policy holder.
5. LIC portfolio in debt is a major risking factor.
LIC IPO Latest News
In budget 2020, Nirmala Sitharaman, announced that the Government is going to disinvest in LIC, Which would help to gather about 1 lakh crore RS.
Originally published at https://iposubscription.com.
