Introduction:
Now days in Indian Market the one IPO which we all are waiting of that is LIC IPO is all set to make debut in 11th March 2024 according to sources. In the Financial Budget 2024 Finance Minister, Nirmala Sitharaman said It will be coming soon and LIC filed DRHP with SEBI(Securities and Exchange Board of India) on 11 february 2024.
LIC IPO is going to Become the Biggest IPO of INDIA. LIC (Life Insurance Corporation) of India is owned by Government of India and In this IPO Government is going to sell at least 5% of it’s stake.
About LIC(Life Insurance Corporation):
LIC(Life Insurance Corporation) is the biggest Insurance Firm in India with around 65% market share in Insurance Sector in India. LIC have 290 Million active Policy Holders. LIC offers all type of Insurance Plans in India. LIC was Founded in 1st September 1956.
What is LIC Valuation:
LIC is Going to raise around 65000 through its IPO at a valuation of 13-15 lakh crores, in which Government is going to selling it’s 5-10% stake. Current Government Owned completely 100% stake in LIC. It can become the one of the biggest Company in term of Market cap. in Indian Capital Market when it got listed at NSE and BSE.
Financial of LIC:
LIC IPO Details:
LIC IPO is coming in 11th March 2024 most probably with a target to raise 65000 at a valuation of 13-15 lakh crores. As in LIC DRHP it is already mentioned that there will be a policy holder Quota, in which the LIC Policyholder can apply in this Quota.
There will be 35% Retail Quota of the Issue Size in LIC IPO, the Issues size will be coming shortly.
LIC IPO Schedule (TENTATIVE)
07th March – Announcement of Price Band
09th March – Anchor Investors Allotment
11th March – Offer Opens
14th March – Offer Closes
17th March – Finalization of Basis of Allotment
21st March – Unblocking of ASBA Accounts
22nd March – Credit of Equity Shares to Depository Accounts
23rd March – Commencement of Trading
Life Insurance Corporation of India IPO – Issue Information (TENTATIVE)
Issue Opens on: 11 March 2024
Issue Closes on: 15 March 2024
Issue Type: Book Built Issue IPO
Issue Size: 31,62,49,885 Shares (65,000 Crores)
Face Value: Rs.10/- per Share
Issue Price: Rs.2,000 – Rs.2,100 Share
Discount: 10% (for Employees & Policyholders)
Market Lot: 7 Shares
Listing At: NSE, BSE
Equity Shares outstanding prior to the Issue = 6,32,49,97,701 Shares
Fresh Issue of NIL Shares @2,100/- = Rs. NIL Crs
Offer for Sale of 31,62,49,885 Shares @2,100/- = Rs.*65.416.29Crs
(*considering 10% discount for Employees & Policyholders)
Equity Shares outstanding after the Issue = 6,32,49,97,701 Shares
Category-wise Break up:
Anchor – 8,06,43,751 Shares = 16,935.18Crs (@2,100/-)
QIB – 5,37,62,480 Shares = 11,290.12Crs (@2,100/-)
NII – 4,03,21,860 Shares = 8,467.59Crs (@2,100/-)
RII – 9,40,84,341 Shares = 19,757.71Crs (Lot size: 7 = 1,34,40,620 Forms)
Employees – 1,58,12,494 Shares = 2,988.56Crs (10% discount = @1,890/-)
PolicyHolders – 3,16,24,989 Shares = 5,977.12Crs (10% discount = @1,890/-)
Total Issue – 31,62,49,885 Shares = 65,416.29Crs.
Subscription required for 1X
RII = 1,34,40,620 Forms
NII = 8,467.59 Crs
About Policyholder Quota:
In LIC DRHP there is mention of Policyholder quota in which the LIC Policyholder have an advantage in LIC IPO with 10% reservation in IPO and also get’s a discount around 10% of it’s price band.
The Record for policyholder Quota is 13th February 2024, Means you have to be a policyholder of LIC before 13th February 2024.
How to apply in LIC IPO with policyholder Quota?
Here are the 2 important things which policyholder need to apply in Policyholder Quota:
- The Policyholder should update there PAN Card Details on the LIC Portal.
- Policyholder should have a Demat Account with that Pan Card.
Here is how to update PAN Card at LIC Portal:
- Visit the LIC pan update link or click here.
- Keep your pan card and your policies in your hands and now click on PROCEED Button.
- Enter the correct email address, Mobile Number, PAN Card Number, Date of Birth and Policy Number.
- Enter the captcha code.
- Now you get an OTP on registered Mobile Number
- Enter the OTP and Submit.
- You will get a SMS or Mail for the verification from LIC.
Alternately, you may contact your LIC Branch or Agent for updating the PAN.
After Update you can Check the Update Status Here:
Go to LIC Portal and click on Update status check link or Click here.
Price Band and Latest Grey Market Premium of LIC IPO:
The Price Band and Grey Market Premium is yet to announce once it announced we will update here, Till that get in Touch up with us.
Should we Apply in LIC IPO?
The Biggest Question is to apply or not in LIC IPO. Based on our studies and market Research we can tell you to You should Apply in LIC IPO. Because of Following Reasons:
- LIC is having a market leader in it’s Sector that is Insurance Sector.
- LIC have a Good Financials and LIC is owned by Government of India.
- In future aspects there is growth of Insurance Sector that will be beneficials for LIC.
- There is no competitors in comparison to LIC.
- Future Growth of LIC.
- Also the Domestic Institutions and Foreign Investors are like to invest in this IPO.
Conclusion:
Our Conclusion is you should Apply in LIC IPO for Listing gains or Long term aspects, LIC IPO will become the Biggest IPO of India and it will be a wealth creator for It’s Shareholder in future.
Frequently Asked Questions(FAQs):
1. LIC IPO Date?
Ans: LIC IPO will come in 11th March 2024 according to sources.
2. What is the share Price of LIC IPO?
Ans: Issue Price is Rs.2,000 – Rs.2,100 per Share
3. What is the Valuation of LIC?
Ans: The Valuation of LIC is nearly 13-15 Crores.
4. What is the size of LIC IPO?
Ans: The size of LIC IPO is nearly 65000 Crores.
5. Should we Apply in LIC IPO?
Ans: Based on our Market Research we suggest to Apply in LIC IPO.
6. What is the Policyholder Quota in LIC IPO?
Ans: In LIC DRHP there is mention of Policyholder quota in which the LIC Policyholder have an advantage in LIC IPO with 10% reservation in IPO and also get’s a discount around 10% of it’s price band. And you have to be a Policyholder of LIC before 13th February 2024 if you want to apply through Policyholder Quota.
7. LIC IPO GMP?
Ans: The GMP is not available Yet, To be Announce.
8. How Much Retail Quota in LIC IPO?
Ans: In LIC IPO there is 35% Retail Quota of the Issue size.
