Probably no other IPO has sparked as much attention as the IPO of India’s largest life insurance firm, Life Insurance Corporation of India (LIC). The wait is over for investors, as LIC will conduct its initial public offering on May 4th. Go here to discover everything you need to know about the LIC IPO and the hype that has surrounded it. If you want to understand more about the LIC IPO and the hype surrounding it, this article will provide you with all of the relevant facts.
What is so great about the LIC IPO?
The LIC IPO will be India’s largest ever. 22.13 crore shares would be sold by the government. LIC is the largest insurance provider in India, with a market share of 64.1 percent by GWP for fiscal 2021. In fiscal 2021, LIC held an approximate 87 percent and 91 percent market share in total maturity claims and annuity payments, respectively.
LIC India’s Success Story
When LIC was founded in 1956, it had five zonal offices, 33 divisional offices, 212 branch offices, and a corporate headquarters. It had 2,048 branch offices and 1,559 satellite offices throughout India as of December 31, 2021. LIC is India’s largest asset manager, with assets under management of Rs. 36.8 trillion as of March 31, 2021.
As of March 31, 2021, LIC’s AUM was more than three times that of all private life insurers in India. As of December 31, 2021, its listed equities assets had a carrying/market value of roughly Rs. 8 trillion, accounting for around 4% of the NSE‘s total market capitalization. Be a trader with 5paisa and understand the different important things about dealing in shares.
Is there anything to worry about the LIC IPO?
There is concern that LIC would continue to issue offers for sale in order to raise further capital, which might hurt the stock price, as opposed to a company like Tata Consultancy Services Ltd (TCS), which buys back its own shares rather than issuing new ones.
LIC India’s Interesting Facts
- For more than 65 years, LIC has been providing life insurance in India.
- LIC’s AUM was 17.0 percent of India’s anticipated GDP for fiscal 2022 as of December 2021.
- The AUM of LIC is more than 3.2 times that of all private life insurers in India as of December 31, 2021.
- As of March 31, 2021, LIC’s claim settlement percentage was 98.3 percent.
- As of March 31, 2021, LIC has 286 million policies in force under Individual Business (inside India).
- LIC resolved total maturity claims and annuity payments of Rs. 1,656.6 billion and Rs. 145.7 billion in fiscal 2021, respectively, accounting for an approximate market share of 87 percent and 91 percent.
LIC is owned by the government and has previously aided a number of distressed firms. Even the LIC’s share sale prospectus notes that some activities may be required, but there is no guarantee that they would be beneficial. We can only hope that this will change once it is listed. Stock prices may gradually rise if supply remains constant.