LIC IPO: The Initial Public Offering (IPO) of Life Insurance Corporation (LIC) of India is going to hit primary market next week. As per the information available on BSE website, LIC IPO subscription will open on 4th May 2022 and it will remain open for bidding till 9th May 2022. The public issue worth Rs21,008.48 crore is 100 per cent OFS (Offer for Sale) in nature and the Government of India (GoI) has fixed its price band at Rs902 to Rs949 per equity share. As per the market observers, shares of LIC are available at a premium of Rs92 in grey market today.

Here we list out important LIC IPO details:

LIC IPO GMP: According to market observers, LIC IPO GMP today is Rs92, which is Rs20 higher from its Friday evening GMP of Rs72 per equity share.

LIC IPO date: The public issue will open on 4th May 2022 and it will remain open for bidding till 9th May 2022.

LIC IPO price: The GoI has fixed LIC IPO price band at Rs902 to Rs949 per equity share.

LIC IPO size: The GoI aims to raise Rs21,008.48 crore from this public issue.

LIC IPO lot size: A bidder will be able to apply in lots and one LIC IPO lot will comprise 15 shares.

LIC IPO application limit: One bidder can apply for minimum 1 lot whereas maximum lots allowed for single bidder to apply is 14.

LIC IPO discount: The GoI has announced Rs60 per equity share discount for IPO applicants applying under 'policyholder' category and Rs45 per equity share discount for bidders applying under 'employee' category.

LIC IPO allotment date: The like date for share allocation announcement is 12th May 2022.

LIC IPO listing: Shares of LIC will list on BSE and NSE and the likely date for share listing is 17th May 2022.

LIC IPO registrar: KFin Technologies Limited is the official registrar of LIC IPO.

LIC IPO investment limit: As one bidder can apply for minimum one lot and maximum 14 lots, minimum amount required to apply for most-awaited IPO is Rs14,235 ( Rs949 x 15) whereas maximum investment limit is capped at Rs1,99,290 [( Rs949 x 15) x 14].

LIC IPO: Buy or not?

Giving LIC IPO review, Parth Nyati, Founder at Tradingo said, “At a valuation of Rs6 lakh crores, the issue is priced at a Price to Embedded Value of 1.1, which is a discount compared to its listed Indian as well as global peers. LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand value and a huge network of agents. However, there are concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins, and short-term persistency ratios, but the valuation at Price to Embedded Value of 1.1 discounts the above concerns. Nevertheless, investors must be aware that the business of insurance is long-term in nature; therefore we recommend this issue for the long term only."

Giving ‘subscribe’ tag to LIC IPO, Narendra Solanki, Head- Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers said, “The Life Insurance Corporation (LIC) IPO looks appealing because it has approximately 30 crore policyholders and 13 lakh agents, accounting for 55 percent of the total agent network. The insurance behemoth has a market share of around ~64% of the sector’s total insurance premiums in FY21. Life insurance has been one of the fastest growing segments in India’s insurance market and recorded a premium income of over Rs.5.7 trillion in FY20. Of this, LIC had written premiums that amounted to around Rs.3.8 trillion. As of 30th September 2021, LIC was India's largest asset manager, with assets under management (AUM) of $39.55 trillion, more than 3.3 times the combined AUM of all private life insurers in India and more than 1.1 times the AUM of the whole Indian mutual fund industry. LIC’s investments in listed shares accounted for about 4% of the NSE's entire market capitalization as of Sep 21.  One can now invest in India's largest and world’s third strongest brand Life Insurance Corporation (LIC), in addition to being just a policyholder."