{"id":8230,"date":"2022-04-29T20:24:35","date_gmt":"2022-04-29T14:54:35","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=8230"},"modified":"2022-06-14T00:40:08","modified_gmt":"2022-06-13T19:10:08","slug":"lic-ipo-date-price-review-news-application-and-details","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/","title":{"rendered":"LIC IPO: Date, Price, Review, News, Application and Details!"},"content":{"rendered":"\n<p>Much to everyone\u2019s excitement, the <a href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo\/\" target=\"_blank\" rel=\"noreferrer noopener\">LIC IPO<\/a> is finally here! At a size of ~Rs 20,000 cr., the <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-process\/?utm_source=blog&amp;utm_medium=article\">IPO<\/a> is the biggest in the country so far. Below we have discussed everything you need to know about LIC and the <a href=\"https:\/\/www.tickertape.in\/blog\/ipo-investment\/\">IPO<\/a> to make a sound investment decision.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>This article covers:<\/strong><\/p>\n\n\n\n<ul><li><a href=\"#Details\">LIC IPO highlights<\/a><\/li><li><a href=\"#Category\">Category-wise reservation of the IPO<\/a><\/li><li><a href=\"#Dates\">LIC IPO important dates<\/a><\/li><li><a href=\"#About\">About Life Insurance Corporation of India<\/a><\/li><li><a href=\"#Highlights\">Highlights of LIC<\/a><\/li><li><a href=\"#Objects\">Objects of the offer<\/a><\/li><li><a href=\"#Discount\">LIC IPO policyholder and employees special discount<\/a><\/li><li><a href=\"#Finance\">Financial performance of LIC<\/a><\/li><li><a href=\"#Peer\">Peer comparison<\/a><\/li><li><a href=\"#SWOT\">Life Insurance Corporation SWOT Analysis<\/a><\/li><li><a href=\"#Prospects\">LIC prospects<\/a><\/li><li><a href=\"#FAQs\">FAQs about LIC IPO<\/a><\/li><\/ul>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#About-LIC-IPO\" title=\"About LIC IPO\">About LIC IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Category-wise-reservation-of-the-IPO\" title=\"Category-wise reservation of the IPO\">Category-wise reservation of the IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#LIC-IPO-important-dates\" title=\"LIC IPO important dates\">LIC IPO important dates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#About-Life-Insurance-Corporation-of-India\" title=\"About Life Insurance Corporation of India\">About Life Insurance Corporation of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Highlights-of-LIC\" title=\"Highlights of LIC\">Highlights of LIC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Objects-of-the-offer\" title=\"Objects of the offer\">Objects of the offer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#LIC-IPO-policyholder-and-employees-special-discount\" title=\"LIC IPO policyholder and employees special discount\">LIC IPO policyholder and employees special discount<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Financial-performance-of-LIC\" title=\"Financial performance of LIC\">Financial performance of LIC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Peer-comparison\" title=\"Peer comparison\">Peer comparison<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#LIC-SWOT-Analysis\" title=\"LIC SWOT Analysis\">LIC SWOT Analysis<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Strengths\" title=\"Strengths\">Strengths<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Risks\" title=\"Risks\">Risks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Opportunities\" title=\"Opportunities\">Opportunities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Threats\" title=\"Threats\">Threats<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#LIC-prospects\" title=\"LIC prospects\">LIC prospects<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#FAQs-about-LIC-IPO\" title=\"FAQs about LIC IPO\">FAQs about LIC IPO<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Who-is-the-promoter-of-LIC\" title=\"Who is the promoter of LIC?\">Who is the promoter of LIC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#What-is-the-expected-market-cap-of-LIC\" title=\"What is the expected market cap of LIC?\">What is the expected market cap of LIC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#Is-it-mandatory-for-policyholders-to-have-a-Demat-account-to-apply-for-shares-in-the-offer\" title=\"Is it mandatory for policyholders to have a Demat account to apply for shares in the offer?\">Is it mandatory for policyholders to have a Demat account to apply for shares in the offer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/#What-is-the-lock-in-period-for-the-shares-purchased-through-the-policyholder-reservation-portion\" title=\"What is the lock-in period for the shares purchased through the policyholder reservation portion?\">What is the lock-in period for the shares purchased through the policyholder reservation portion?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"Details\"><span class=\"ez-toc-section\" id=\"About-LIC-IPO\"><\/span><strong>About LIC IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Issue size<\/td><td>Rs 20,000 &#8211; 21,000 cr<\/td><\/tr><tr><td>Open date<\/td><td>4 May 2022<\/td><\/tr><tr><td>Close date<\/td><td>9 May 2022<\/td><\/tr><tr><td>Issue type<\/td><td>Book built issue<\/td><\/tr><tr><td>Face value<\/td><td>Rs 10 per <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> share<\/td><\/tr><tr><td>IPO price<\/td><td>Rs 902 to Rs 949 per equity share<\/td><\/tr><tr><td>Market lot<\/td><td>15 shares<\/td><\/tr><tr><td>Minimum order quantity<\/td><td>1 lot<\/td><\/tr><tr><td>Minimum investment<\/td><td>~Rs 13,530<\/td><\/tr><tr><td>Maximum order quantity<\/td><td>14 lots<\/td><\/tr><tr><td>Maximum investment<\/td><td>~Rs 1,99,290<\/td><\/tr><tr><td>Listing at<\/td><td>BSE and <a href=\"https:\/\/www.tickertape.in\/blog\/national-stock-exchange\/\">NSE<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Here are important details about <a href=\"https:\/\/www.tickertape.in\/blog\/uncover-lics-ipo-with-harsh-vora\/\">LIC IPO<\/a> details in 7 crisp points:<\/p>\n\n\n\n<ol><li><strong>Size:<\/strong> The government aims to raise Rs 21,008 cr. from the offer.<\/li><li><strong>Dates:<\/strong> The issue opens on 4 May 2022 and closes on 9 May 2022.<\/li><li><strong>Price:<\/strong> The price band is fixed at Rs 902 to Rs 949 per share.<\/li><li><strong>Discount:<\/strong> The government has announced a discount of Rs 60 per share to policyholders and Rs 45 for employees.<\/li><li><strong>Lot size:<\/strong> Each lot has 15 shares and an applicant can bid for a maximum of 14 lot.<\/li><li><strong>Listing:<\/strong> The shares will be listed on both NSE and BSE and the tentative date is 17 May 2022.<\/li><li><strong>Registrar:<\/strong> KFin Technologies Ltd is the official registrar of the LIC<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Category\"><span class=\"ez-toc-section\" id=\"Category-wise-reservation-of-the-IPO\"><\/span><strong>Category-wise reservation of the IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government has earmarked 10% of the issue for policyholders. A significant part is reserved for the employees of Life Insurance Corporation. Half of the remaining IPO issue is earmarked for qualified institutional buyers (QIBs), of which 60% has been set aside for anchor investors on a discretionary basis. 1\/3 of the issue is reserved for the anchor investor and will be earmarked for domestic <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">mutual funds<\/a>. Finally, 15% will be allocated to non-institutional investors (NII) ~35% will be available to retail investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Dates\"><span class=\"ez-toc-section\" id=\"LIC-IPO-important-dates\"><\/span><strong>LIC IPO important dates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Open date<\/td><td>4 May 2022<\/td><\/tr><tr><td>Close date<\/td><td>9 May 2022<\/td><\/tr><tr><td>UPI mandate expiry date<\/td><td>10 May 2022<\/td><\/tr><tr><td>Allotment date<\/td><td>12 May 2022<\/td><\/tr><tr><td>Initiation of refunds<\/td><td>13 May 2022<\/td><\/tr><tr><td>Credit of shares toDemat account<\/td><td>16 May 2022<\/td><\/tr><tr><td>IPO listing date<\/td><td>17 May 2022<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"About\"><span class=\"ez-toc-section\" id=\"About-Life-Insurance-Corporation-of-India\"><\/span><strong>About Life Insurance Corporation of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>True to its tagline &#8211; Zindagi ke saath bhi\u2026 Zindagi ke baad bhi\u2026, LIC is India\u2019s largest insurer and is government-run. It offers participating and non-participating insurance products, including saving insurance, <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-buy-term-insurance-in-your-20s\/\">term insurance<\/a>, <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-individual-health-insurance\/?utm_source=blog&amp;utm_medium=article\">health insurance<\/a>, <a href=\"https:\/\/www.tickertape.in\/blog\/difference-between-ulip-and-mutual-funds\/?utm_source=blog&amp;utm_medium=article\">unit-linked insurance products (ULIPs)<\/a>, and annuity and pension products.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Highlights\"><span class=\"ez-toc-section\" id=\"Highlights-of-LIC\"><\/span><strong>Highlights of LIC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>It claims a market share of over 66.2% in new business premium.&nbsp;<\/li><li>It boasts a market share of over 64.1% in terms of premiums.<\/li><li>It has a total AUM of Rs 3,95,58,929.24 mn as of 30 September 2021.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Objects\"><span class=\"ez-toc-section\" id=\"Objects-of-the-offer\"><\/span><strong>Objects of the offer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol><li>To offload a 3.5% stake in LIC for Rs 21,000 cr.<\/li><li>To enjoy the benefits of listing.<\/li><li>Carry out the <a href=\"https:\/\/www.tickertape.in\/blog\/offer-for-sale\/\">Offer For Sale<\/a> (OFS) by the selling shareholder &#8211; President of India, acting via the Ministry of Finance, Government of India.<\/li><li>Enhance the company&#8217;s visibility and brand image.<\/li><li>Provide a public market for its <a href=\"https:\/\/www.tickertape.in\/blog\/what-are-equity-shares-meaning-types-features-limitations-and-more\/\">equity shares<\/a> in India.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Discount\"><span class=\"ez-toc-section\" id=\"LIC-IPO-policyholder-and-employees-special-discount\"><\/span><strong>LIC IPO policyholder and employees special discount<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government of India has announced a discount for LIC policyholders and employees. As a policyholder, you can avail a discount of Rs 60 per equity share. However, only the policyholders who bought their policy on or before 13 April 2022 are eligible for this discount. Further, the company&#8217;s employees are eligible for a discount of Rs 45 per equity share.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Finance\"><span class=\"ez-toc-section\" id=\"Financial-performance-of-LIC\"><\/span><strong>Financial performance of LIC<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>LIC\u2019s net premium income increased at a 9.30% <a href=\"https:\/\/www.tickertape.in\/blog\/compound-annual-growth-rate\/\">CAGR<\/a> from Rs 3,37,18,539.65 lakh in 2019 to Rs 4,02,84,434.43 lakh in 2021.<\/li><li>Its total revenue rose from Rs 5,60,78,439.38 lakh in FY 2019 to Rs 6,82,20,499.40 lakh in FY 2021.<\/li><li>The company\u2019s profit after tax increased at a CAGR of 3.87% from Rs 2,68,849.66 lakh in FY 2019 to Rs 2,90,056.68 lakh in FY 2021.<\/li><li>LIC&#8217;s 13-month persistency ratio increased from 66% in FY 2019 to 67% in FY 2021 thereby suggesting growth in the policyholders who renewed their policies.<\/li><li>As of December 2021, the insurer\u2019s market share for the New Business Premium segment stood at ~66%, significantly higher than the combined market share of its rivals.<\/li><li>LIC commands a market share of 74% in terms of the number of policies.<\/li><li>LIC clocked a 25% y-o-y growth in total APE (Annual Premium Equivalent).<\/li><\/ul>\n\n\n\n<p>Below is a table of LIC\u2019s consolidated financials from FY 2019 to FY 2021.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Particulars<\/strong><\/td><td><strong>FY 2019 (Rs)<\/strong><\/td><td><strong>FY 2020 (Rs)<\/strong><\/td><td><strong>FY 2021 (Rs)<\/strong><\/td><\/tr><tr><td>Net premium income<\/td><td>3,37,18,539.65<\/td><td>3,79,06,255.71<\/td><td>4,02,84,434.43<\/td><\/tr><tr><td>Total revenue<\/td><td>5,60,78,439.38<\/td><td>6,15,88,293.71<\/td><td>6,82,20,499.4<\/td><\/tr><tr><td>Profit after tax<\/td><td>2,68,849.66<\/td><td>2,71,270.8<\/td><td>2,90,056.68<\/td><\/tr><tr><td>Persistency ratio (13th month)<\/td><td>66%<\/td><td>61%<\/td><td>67%<\/td><\/tr><tr><td>Conservation ratio<\/td><td>92.19 %<\/td><td>88.79 %<\/td><td>84.48 %<\/td><\/tr><tr><td>Solvency ratio<\/td><td>1.6<\/td><td>1.55<\/td><td>1.76<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Peer\"><span class=\"ez-toc-section\" id=\"Peer-comparison\"><\/span><strong>Peer comparison<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In addition to LIC, India&#8217;s insurance sector also has private players. Below is a table detailing LIC&#8217;s peers and their market cap.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Competitor<\/strong><\/td><td><strong><a href=\"https:\/\/www.tickertape.in\/blog\/market-capitalization\/\">Market capitalisation<\/a> (Rs in cr.)<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/hdfc-life-insurance-company-HDFL?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">HDFC Life Insurance<\/a><\/td><td>1,20,715.06<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/sbi-life-insurance-company-SBIL?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">SBI Life Insurance<\/a><\/td><td>1,11,726.39<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/icici-prudential-life-insurance-company-ICIR?checklist=basic&amp;utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">ICICI Prudential Life Insurance<\/a><\/td><td>76,788.32<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><em>*Data as of 29 April 2022<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"SWOT\"><span class=\"ez-toc-section\" id=\"LIC-SWOT-Analysis\"><\/span><strong>LIC SWOT Analysis<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The issue is expected to assist the government in meeting its revised disinvestment target of Rs 78,000 cr for the fiscal while tapping into a legion of new retail investors. Here\u2019s a SWOT analysis of LIC to help you gain clarity for your investment decision.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strengths\"><\/span><strong>Strengths<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>A leading insurance provider in India with a lineage of 65 years and the world\u2019s fifth-largest insurer by gross written premium (GWP).<\/li><li>A variety of life insurance plans to accommodate people\u2019s varying insurance needs.<\/li><li>Strong omni channel presence through 1.34 mn. individual agents, 3,463 active micro insurance agents, 174 other channels, and others.<\/li><li>LIC is the largest asset manager in India, with a proven track record of financial performance.<\/li><li>Trusted brand and a customer-centric business model.<\/li><li>Robust risk management framework.<\/li><li>Management team with extensive experience and qualifications and strong corporate governance framework.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks\"><\/span><strong>Risks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>In the first nine months of FY 2022, the number of death claims settled increased as compared to FY 2019 due to COVID-19 pandemic.<\/li><li>The business is dependent on individual agents, which leads to continuous recruiting and retaining. If the company fails to do so, it can severely impact the business growth.<\/li><li>Division of the single consolidated \u2018Life Fund\u2019 of the Corporation into two separate funds, viz., a participating policyholders\u2019 fund and a non-participating policyholders\u2019 fund, effective 30 September 2021 may adversely affect the business, its financial condition, results of operations and cash flows.<\/li><li>Lockdown has affected the ability of LIC partners to sell products.&nbsp;<\/li><li>A highly competitive industry.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Opportunities\"><\/span><strong>Opportunities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>The company has the ability to expand its product portfolio and introduce new products that cater to the needs of the customers.<\/li><li>LIC can improve the business to a greater scale and make a high return by implementing the latest technology such as blockchain and <a href=\"https:\/\/www.tickertape.in\/blog\/how-ai-can-help-make-good-investment-decisions\/\">artificial intelligence<\/a>.<\/li><li>The company can <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a> in new-age companies and benefit from them in terms of gaining new-age customers and technological advancements.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Threats\"><\/span><strong>Threats<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul><li>LIC agents are independent and can easily miss-sell the products, hampering the brand image.<\/li><li>Even after being the leading insurer in the country, the company faces intense competition from private life insurers like HDFC Life and ICICI Prudential Life.<\/li><li>Government intrusion in primary business areas could affect decision making and effective resource utilisation.<\/li><li>The Government has put a limit on <a href=\"https:\/\/www.tickertape.in\/blog\/how-do-fdi-fpi-and-fii-differ-from-each-other\/\">foreign investments<\/a> in Indian insurance companies. It can directly impact the LIC\u2019s market share.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"Prospects\"><span class=\"ez-toc-section\" id=\"LIC-prospects\"><\/span><strong>LIC prospects<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Given LIC\u2019s size, reach, and scalability, it is well-equipped to seize the growth opportunities In the Indian life insurance sector. Following are the prospects of LIC.<\/p>\n\n\n\n<ol><li>It looks to increase the market share of its bank assurance segment by partnering with more banks.<\/li><li>It wants to enhance the share of non-participating products by increasing by focusing on protection products, pension\/annuity products, ULIP, and <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-individual-health-insurance\/?utm_source=blog&amp;utm_medium=article\">health insurance<\/a>.<\/li><li>Upsell and cross-sell its products to customers and beneficiaries to cater to their varied financial needs.<\/li><li>Hire more millennial agents to accommodate the changing demographic dynamics.<\/li><li>Increase the average ticket size of its products and focus on group protection plans.<\/li><li>Life Insurance Corporation also plans to improvise its distribution channels. Not only does it want to expand its individual agency network, but also to improve their productivity and longevity.<\/li><li>LIC intends to identify additional partners in the bank assurance and alternate channels, including brokers, insurance marketing firms, and other agents.<\/li><li>Life Insurance Corporation looks to bank upon the latest technology and digital initiatives in bettering its operations and services.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"FAQs\"><span class=\"ez-toc-section\" id=\"FAQs-about-LIC-IPO\"><\/span><strong>FAQs about LIC IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-62a78b9024b48\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Who-is-the-promoter-of-LIC\"><\/span><strong>Who is the promoter of LIC?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Currently, the Government of India holds a 100% stake in LIC, the largest insurer. The government will reserve a 10% stake for its policyholders, 50% for qualified institutional buyers (QIBs), 35% for retail buyers, and 15% for non-institutional investors. Of the 50% QIB allocation, 60% will be reserved for anchor investors.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-62a78b9024b4a\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-expected-market-cap-of-LIC\"><\/span><strong>What is the expected market cap of LIC?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The <a href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-meaning\/\">market capitalisation<\/a> of LIC would be Rs 13-15 lakh bn following the IPO.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-62a78b9024b4b\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is-it-mandatory-for-policyholders-to-have-a-Demat-account-to-apply-for-shares-in-the-offer\"><\/span>I<strong>s it mandatory for policyholders to have a Demat account to apply for shares in the offer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes. If the shares are allotted, they are transferred to the investor\u2019s Demat account as physical share certificates are no longer used. Hence, to own the shares, a policyholder will need a Demat account to apply for the IPO.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-62a78b9024b4c\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-lock-in-period-for-the-shares-purchased-through-the-policyholder-reservation-portion\"><\/span><strong>What is the lock-in period for the shares purchased through the policyholder reservation portion?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>There is no lock-in period. As a result, if a policyholder chooses to sell its shares, it can do so immediately on listing.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>LIC IPO is going live on 4 May 2022. Know about the IPO date, price, review, analysis, discount, financials and more.<\/p>\n","protected":false},"author":27,"featured_media":8233,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[9,1727],"tags":[208,237,1182],"acf":[],"modified_by":"Vyshakh","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/04\/TT-16-Feb-LIC-IPO-1024x533@2x.jpeg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8230"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=8230"}],"version-history":[{"count":10,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8230\/revisions"}],"predecessor-version":[{"id":9138,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/8230\/revisions\/9138"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/8233"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=8230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=8230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=8230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}