LIC IPO: On February 13, the government has filed DRHP for issue with SEBI. The report quoted merchant banking sources as saying that the government is hoping to raise Rs 63,000 crore (about $8 billion) from the IPO. LIC policy holders can also invest in this IPO as 10 percent of it will be reserved for them. Let’s know the things related to it.
New Delhi: LIC IPO: In the stock market these days IPO has taken hold. In the midst of the Russia-Ukraine dispute, people are also skeptical about LIC IPO, but the government has made its stand clear on this. Documents have also been submitted to the market regulator SEBI for LIC IPO. If you are also waiting for LIC’s IPO, then it is going to end soon. The country’s largest IPO is expected to open on March 10.
On Sunday 13 February, the government has filed DRHP for the issue with SEBI. The report quoted merchant banking sources as saying that the government is hoping to raise Rs 63,000 crore (about $8 billion) from the IPO. LIC policy holders can also invest in this IPO as 10 percent of it will be reserved for them. That is, the chances of getting shares in the policyholders will increase. Apart from this, they can also get discount.
Base price can be up to Rs 2100
No official statement has been made by the government on the opening of LIC’s IPO yet. According to the information being received from the sources, the issue price of the company could be between Rs 2000-2100. According to the draft submitted with SEBI on Sunday, the issue size of LIC can be up to Rs 63,000 crore.
Prepare before investing in IPO
If you also want to invest in LIC IPO, then keep some documents ready for that first. To invest in LIC IPO, first you need to have a PAN and Demat account linked to your LIC policy account. That is, it is necessary for you to settle both of these tasks as soon as possible.
Update PAN details in 10 steps
- For this, first go to the official website of LIC.
- Now on the homepage select the option ‘Online PAN Registration’.
- Now click on ‘Proceed’ on the registration page.
- On the new page, fill PAN, email, mobile number and policy number correctly.
- After this, enter the captcha code correctly.
- Now click on OTP request.
- An OTP will come on your registered mobile number.
- Now enter OTP and submit.
- After this you will get the message of successful registration.
- Once again check the status by date of birth, policy-PAN number.
Policy holders-employees’ share reserve
After a long wait, the IPO has made it clear that the share is reserved for LIC policy holders and employees of the company. LIC issue to both will be given at a discount. According to the report, according to the draft document submitted to SEBI, 10 per cent of the issue has been reserved for policy holders. That is, even if your LIC policy has lapsed, you can still bid in the reserve quota. Apart from this, 5 percent share will be reserved for LIC employees.
Country’s largest insurance company
Significantly, the market of LIC is very strong. Its market share is 64.1 percent. According to a report by Crisil, it is the largest life insurance company in the country. Its return on equity is also the highest at 82 per cent. According to this report, it is the third largest insurance company in the world in terms of life insurance premiums. It is the world’s largest insurance company with 64 percent market share.
Tremendous profits and growth
Now let’s talk about profits and growth. If we look at the profit of LIC, the profit after tax of LIC in the first half of the financial year 2021-22 stood at Rs 1,437 crore. LIC’s profit was Rs 6.14 crore in the same period a year ago. In the first half of this financial year, the growth rate of LIC’s new business premium was 554.1 percent. Not only this, people are waiting for this mega IPO very fast because it is the sixth largest insurance company in the world with $522 billion in terms of total assets.
History of LIC
Now let’s look at the history of LIC. LIC is established in 1956. LIC was formed in 1956 by merging 245 insurance companies and Provident Society. LIC Act, 1956 was established with the Government of India by investing a capital of 5 crores. LIC is the only government life insurance company, and the government has 100% stake in it. The market of LIC is so strong that it has 30 crore policy holders now. LIC has access to village-to-village in the country. There are more than 12 lakh agents in LIC. The slogan of LIC is ‘Yogakshamam Vahamyaham’. There are about 1.25 lakh employees in LIC.
