LIC IPO | LIC IPO Date 2023 Full Information
LIC IPO, welcome to our website, today we are going to tell you in this post about What LIC IPO, has achieved its status in the very popular share market, today we will give you all kinds of information related to it today we will answer all your questions. If we try to answer, then stay with us in this post, so now, with no delay, let’s start.
LIC IPO
LIC IPO: Life Insurance Corporation of India (LIC) on Wednesday opened India’s largest-ever initial public offering (IPO) for subscriptions. The central government has set a target of raising Rs 21,000 crore by selling a 3.5 percent stake by bringing this IPO. The opening price of LICK IPO has been fixed at Rs 902-949 crore.
LIC IPO Date 2022
LIC IPO: If you have any policy of LIC before the date of filing DRHP of LIC IPO i.e. before 13th February 2022, then you can take a discount in this IPO.
LIC IPO: IPO of Life Insurance Corporation of India is open. If you also want to invest money in this IPO, then you can also invest money on the upcoming Saturday and Sunday (bidding on Saturday and Sunday). LIC IPO is open for subscription from May 4 to May 9, 2022. LIC has fixed the IPO market timings on Saturday (May 7) and Sunday (May 8) from 10 am to 7 pm for the convenience of its subscribers. You can subscribe in the meantime.
Rules for those who invest Rs 5 lakh
According to the news, 16,20,78,067 shares have been issued in this IPO. According to the latest SEBI circular, individual investors who will invest at least Rs 5 lakh, have to make payments through UPI. Also, UPI ID has to be shared with the bid cum application form. The government will reduce its 3.5 percent stake in the company through an Offer for Sale (OFS) in this issue. The government’s plan is to raise about Rs 21,000 crore from this offer.
Discount to policyholders
If you have any policy of LIC before the date of filing DRHP of LIC IPO i.e. before 13th February 2022, then you can take a discount in this IPO. It does not matter how old your policy is and what is its size. A smaller policy of LIC will get less discount and a bigger policy will get more discount, this is not the case at all.
IPO price band
The government has fixed the price band for LIC IPO from Rs 902 to 949 per share. In which policyholders are getting a discount of Rs 60. Your PAN details should be linked to your policy. The last date for linking PAN cards in the policy was February 28.
LIC IPO Expected price
LIC Share Target Price: Has broken more than 15 percent from its IPO price of Rs 949. On Thursday, the stock closed at 805.85, down by Rs 4.70 on the BSE. Now the rating agencies are also refusing to expect this stock to go up soon.
The Life Insurance Corporation of India (LIC) has disappointed investors in the first two weeks after its listing. Since its listing on the stock market on May 17, the stock has closed in the red for most of the trading sessions. It has now lost more than 15 percent from its IPO price of Rs 949. On Thursday, the stock closed at 805.85, down by Rs 4.70 on the BSE.
Now the rating agencies are also refusing to expect this stock to go up soon. Emkay Global has given a ‘Hold’ rating to the LIC share and has set a target price of Rs 875. This means that this stock will not be able to go above its IPO price for some time to come. That is, there is no scope of profit for the investors of LIC IPO at present.
Only a 9% chance of growth
If we look at the current price of the share, then it can only go up by about 9 percent. LIC’s IPO is the biggest IPO in the country. Investors were waiting for this IPO for a long time. But now many investors are regretting buying this IPO. At least 17 analysts had given subscribe ratings for this IPO and they had high expectations. However, Emkay believes that its size is a major deterrent to the performance of the stock.
Biggest Power – 13 Lakh Agents
The brokerage said in its report, “The size and legacy of the company are the major constraints in fundamentally changing the product and distribution. The biggest strength of LIC has been its vast network of 1.3 million agents. Due to this, LIC remains ahead of private players in many respects. However, it also has costs in terms of a larger branch network and higher OPEX. LIC’s market share of more than 60 percent in the insurance industry is also a problem as it hides operational challenges.
The company disappointed investors with quarterly results
“LIC’s major stake in the single premium group fund management business artificially inflates its market share and lowers some of its cost ratios,” the brokerage further said. LIC has also disappointed investors in its quarterly results released last week. The company’s consolidated net profit fell by 17.41 percent in the fourth quarter of the last financial year. Whereas, its net premium income grew by 17.88 percent. While releasing the results, the company had also announced a dividend of Rs 1.5 per share for the investors.
Listing on the stock exchange on 17th May
Investors who have invested in LIC’s IPO are now waiting for the listing of the company on the stock exchange.
LIC’s IPO will be listed on the stock exchange on May 17. It is believed that the shares have been allotted to the investors and the shares will be credited to the Demat account of the investors by Monday, 16 May. On the other hand, investors who have not been allotted shares or have been allotted fewer shares than in the application will get the amount back in their bank account on 16 May.
IPO closed on 9th May
LIC’s IPO was open for subscription from May 4 to 9. The price band of LIC IPO was fixed at Rs 902 to Rs 949 and Rs 20,557 crore has been raised through IPO. LIC’s IPO is subscribed less than 3 times which is less than expected. The continuing fall in the stock market, rising inflation, the war between Russia and Ukraine, and the selling of foreign investors in the Indian markets has disturbed the mood of the market.
Decreasing GMP
Investors investing in LIC IPO may get a setback. The gray market premium is continuously decreasing before the listing of LIC’s shares on the stock exchange. The gray market premium of LIC IPO is now trading below Rs 25 from the upper band of its issue price.
LIC IPO for Policyholders
LIC IPO: About 10 percent of the shares are reserved for policyholders in LIC IPO. He will also get a discount of about Rs 60 on each share. However, there are certain rules for LIC policyholders. In this IPO, the LIC IPO Reservation Portion category has been created for the policyholders. NRIs and Group Policyholders cannot take advantage of this Reservation Portion (Who can apply for lic IPO).
LIC’s much-awaited IPO is going to come on Wednesday, May 4. It will be closed on Monday, May 9. People were waiting for this IPO for a long time. The policyholders of LIC and the employees of the company were most eagerly waiting for this because about 10 percent of the shares are reserved for them in this IPO (LIC IPO Reservation Portion).
According to LIC, about 1.58 crore shares are reserved for employees, while 2.21 crore shares are reserved for policyholders. Retail and employees will get a discount of Rs 45, while the policyholder will get a discount of Rs 60. So if you are also thinking of taking LIC’s IPO (Who can apply for lic IPO), then first you should know these 5 things.
1- What for NRI LIC policyholders?
Under the Policyholder Reservation Portion, LIC has kept about 10 percent of the IPO shares for policyholders and discounts are also being given on these. One thing to note here is that if the policyholder is an NRI who is not residing in India then he/she is not eligible for this offer. This has been confirmed by LIC in the question-answer section of its DRHP. It clearly states that only people residing in India can apply for this.
2- Demat account is necessary
If you are also a policyholder of LIC and want to take LIC IPO, then you must have a Demat account. You must also ensure that your PAN number is updated in the existing system of LIC. Advertisements in newspapers have been taken out many times for this by LIC. According to DRHP, policyholders who have not updated their PAN number by 28 February 2022 cannot apply for shares reserved for policyholders.
3- What about the policyholders whose policy has lapsed?
If you too had ever taken a policy of LIC, but due to some reason it lapsed, you can still get the benefit of the reservation portion in one case. According to the company, all those policies which have not yet been out of LIC’s record, of them will get the benefit. That is, whatever policy is still visible in the records of the company due to maturity, surrender, or death of the policyholder, even if it has lapsed, they will get the benefit of the reservation portion.
4- What are the rules for joint policyholders?
There are many such policyholders in LIC who have taken the policy together. For such joint policyholders, there is a rule that either of the two can apply for the same IPO under the reservation portion category. Also, it has to be kept in mind that the PAN number of the one who applies should be updated in LIC. Not only this, but if his bank account is also a joint then the person applying should be his primary account holder.
5- What about LIC policyholders covered under Group Policy?
If you are covered under LIC Group Policy then you cannot apply for LIC IPO under Reservation Portion. This has been confirmed in the question-and-answer section of the company’s DRHP. That is, if you are covered in a group policy under any company or are part of a policy like Pradhan Mantri Vaya Vandana Yojana, then you will not get the benefit of the reservation portion.
How to Purchase LIC IPO
Essence
16 crore 20 lakh 78 thousand 67 shares have been put up for sale. Out of this, investors have bid for 10.75 crore shares so far. The maximum share of this was filled by policyholders which were 1.95 times. Employees’ shares filled 1.15 times.
Expansion
The Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC) has been launched. The country’s biggest IPO ever opened for subscription at 10 am on Wednesday and 66% subscribed by the evening. 10% of the total shares reserved for policyholders became oversubscribed. Meaning it has been bid twice.
16 crore 20 lakh 78 thousand 67 shares have been put up for sale. Out of this, investors have bid for 10.75 crore shares so far. The maximum share of this was filled by policyholders which were 1.95 times. Employees’ shares filled 1.15 times. The share of non-institutional investors (NICs) was the lowest at only 27 percent, while the share of retail investors was 60 percent. Investors will get a chance to invest till May 9. However, experts believe that the decision of the Reserve Bank to increase the rates may affect the IPO.
First, know about LIC
At the time of independence of the country, most of the private companies were working in the field of insurance. In such a situation, the government took steps in this area. The Central Government passed the Life Insurance Corporation Act in Parliament on 19 June 1956. Life Insurance Corporation of India (LIC) was established on 1st September 1956.
When LIC came into existence by acquiring many private companies, then 27 thousand employees used to work here. On the very first day, the company had 50 thousand policyholders. In this way, on the very first day, it became involved in the company with the most employees. Presently the company has about one lakh employees and more than 30 crore insurance policies.
What is IPO?
IPO means Initial Public Offering. Simply put, when a company issues its common stock or shares to the public for the first time, it is called an IPO. IPO is issued by limited companies so that they can get listed on the stock exchange. After listing on the stock exchange, the shares of the company can be bought in the stock market. The company issues IPOs to raise funding in case of investment or expansion.
There are two types of IPO
1. Fixed Price IPO
Fixed price IPO can also be called issue price. Some companies schedule an initial sale of their shares. The investors get to know about the price of the shares that the company decides to take public. The demand for shares in the market can be ascertained after the issue is closed. If investors participate in this IPO, they must ensure that they pay the full value of the shares at the time of applying.
2. Book Building IPO
In such a situation the company offers a 20% price band on the shares to the investors. Interested investors place bids on the shares before the final price is decided. Here investors have to specify the number of shares they want to buy and the amount they are willing to pay per share.
The lowest share price is known as the floor price and the highest stock price is known as the cap price. The final decision regarding the price of the shares is determined by the bids of the investors.
Why LIC’s IPO came?
The central government has set big targets for disinvestment. The launching of LIC’s IPO is a part of this. Through this, the government is selling a 3.5% stake in LIC. There is a plan to raise Rs 21,000 crore from this.
What are the benefits for those who have taken the LIC policy?
If you have a LIC policy then you will get a discount of Rs 60 per share. Under the reservation portion, 10% (2.21 crore shares) share reserve has been kept for LIC policyholders.
Its price has been fixed from Rs 902 to 949. There will be 15 shares in one lot. Policyholders can invest a minimum of Rs 12 thousand 635. Ordinary investors can invest up to Rs 13 thousand 530.
How can investors benefit?
If you apply for IPO from the policyholder quota, then at least Rs 13,335 will have to be invested.
Whereas a common investor will have to pay Rs 14,235 according to the upper price band. In this way, the policyholder will get a total discount of Rs 900 on the application of one lot IPO.
On the other hand, if you have to pay at least Rs 12,635 according to the lower price band in the IPO from the policyholder quota. Whereas the common investor will have to invest Rs 13,530 according to the upper price band.
What are the benefits of getting a discount?
You apply against the policyholder quota and you get one lot according to the upper price band. In such a situation, even if the share is listed in the stock market for Rs 949, you will still get a profit of Rs 60 per share. Otherwise, if it is listed above 949, then that benefit will be different. Apart from this, even if this share is listed at a price as low as Rs 60, you will not have to suffer any loss.
How can I buy shares?
For this, you need to have a Demat account. As per SEBI rules, equity shares of any company are issued only in Demat form. Hence anyone, be it policyholders or retail investors needs to have a Demat account.
How to apply for shares?
There is both online and offline option for this. If you want to apply online then you can apply through your Demat account or through its app. Here you will see the option of 3 categories.
1. Retail
2. Policy Holder
3. Employee
Click on the category you want to apply for. After that how many lots do you want to fill it? After this, the money of the lot price will be absorbed (blocked) from your account. In such a situation, on May 12, if you get shares in the share allotment, then money will be deducted from your account and on May 16, the shares will come into your Demat account. After this, LIC’s stock will be listed in the market on May 17.
But, if you do not get the shares then the process of unblocking your money will start on the 13th of May. After a day or two, your money will be unblocked. If you want to apply offline then you have to contact the LIC office or your Demat account company office.
Some Questions Related
1) How can I get LIC IPO 2022?
How to apply for LIC IPO through net banking
- Login to net-banking using your credentials;
- Go to the investment option and click on the IPO/e-IPO option;
- Fill out the form and complete registration; Choose LIC IPO, enter the number of the lot(s) and the bid price;
2) Is LIC IPO good for investment?
Despite falling premium in a grey market, an intense sell-off in the global markets, rate hike concerns, and inflationary worries, LIC is holding its charm. The majority of the market experts say that LIC is a long-term play and investors should bid for the issue as per their funds and risk appetite
3) What is the future of LIC IPO?
The much-anticipated LIC IPO is now on the verge of opening its pages to the public. The latest news reports state that the IPO will open on 2 May 2022 for employees of LIC and its policyholders as well. On 4 May 2022, the offer will be available to the public. It will close for all concerned on 9 May.
Conclusion
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