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Life Insurance Corporation of India (LIC IPO) Detail

Life Insurance Corporation of India (LIC) Logo

LIC is the largest insurance provider company in India. It has a market share of above 66.2% in new business premium. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, and annuity & pension products.

As of 30 Sep 2021, it has a total AUM of Rs. 39 lakh crore. LIC operates through 2048 branches, 113 divisional offices, and 1,554 Satellite Offices. It operates globally in Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, UAE, Bahrain, Qatar, Kuwait, and the United Kingdom.

Key positive factors

  • LIC is a part insurance and part investment products company. Their plans are a combination of insurance and investment with a guaranteed return.
  • LIC has over 13.5 lakh agents who play brings most of the new business. LIC plans offer ‘fixed returns’ along with life insurance coverage. This makes it easy to sell by agents and brings peace of mind to the insurers.
  • LIC has high trust in the public for both life insurance as well as investment done with them. LIC is synonymous with insurance in India.
  • LIC manage asset of Rs 39 lakh crores. That is more money than the entire mutual fund industry combined. They invest these funds across stocks and bonds. They own 4% of all listed stocks in India and more government bonds than the RBI.
  • Leading insurance provider company in India and fifth largest global insurer by GWP.
  • A range of life insurance products to meet varied insurance needs of individuals.

Key challenges

  • LIC has poor new policy growth as they continue losing market share to private insurance players, especially in urban areas.
  • The margin in insurance + investment products is low.
  • It’s very difficult to value LIC as the business model is unlike any other company. LIC collects money upfront and then promises to compensate policyholders at a later stage. The premiums they collect (part insurance and part investment) cannot be recognized as revenue.

Company Promoters:

The President of India, acting through the Ministry of Finance, Government of India is the company promoter.

Company Financials:

ParticularsFor the year/period ended (₹ in Millions)
Total Assets40,434,596.7037,464,044.6834,141,745.7433,663,346.17
Total Revenue15,197.2429,855.7127,309.5626,449.96
Profit After Tax15,040.1329,741.3927,104.7826,273.78

Objects of the Issue:

The IPO aims to utilize the net proceeds towards the following purposes;

  1. To achieve the benefits of listing the equity shares on the stock exchange.
  2. To carry out an offer for sale of 316,249,885 shares by selling shareholders.

LIC IPO Details

IPO Opening DateMay 4, 2022
IPO Closing DateMay 9, 2022
Issue TypeBook Built Issue IPO
Face Value₹10 per equity share
IPO Price₹902 to ₹949 per equity share
Market Lot15 Shares
Min Order Quantity15 Shares
Listing AtBSE, NSE
Issue Size221,374,920 Eq Shares of ₹10
(aggregating up to ₹21,008.48 Cr)
Offer for Sale221,374,920 Eq Shares of ₹10
(aggregating up to ₹[.] Cr)
QIB Shares Offered50% of the net offer
Retail Shares Offered35% of the net offer
NII (HNI) Shares Offered15% of the net offer

LIC IPO Tentative Timetable

The LIC IPO date is from May 4, 2022, to May 9, 2022. The bidding time is 10.00 A.M. to 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

IPO Opening DateMay 4, 2022
IPO Closing DateMay 9, 2022
Basis of AllotmentMay 12, 2022
Initiation of RefundsMay 13, 2022
Credit of Shares to DematMay 16, 2022
IPO Listing DateMay 17, 2022

LIC IPO Lot Size

The LIC IPO market lot size is 15 shares. A retail-individual investor can apply for up to 14 lots (210 shares or ₹199,290).

ApplicationLotsSharesAmount (Cut-off)

LIC IPO Promoter Holding

Pre Issue Share Holding100%
Post Issue Share Holding96.50%

LIC IPO Prospectus

LIC IPO Effective Price by Category

Investor CategoryEffective Price
QIBsRs 949
HNIsRs 949
RetailRs 904 (Rs 45 discount)
PolicyholdersRs 889 (Rs 60 discount)

LIC IPO Multiple Application

A LIC policyholder can apply for LIC IPO shares using 2 IPO applications in the following categories:

  1. Policyholder + Retail Category
  2. Policyholder + HNI (NII) Category

Company Contact Information

Life Insurance Corporation of India (LIC)
Yogakshema, Jeevan Bima Marg
Nariman Point, Mumbai 400 021,

Phone: +91 22 6659 8732
Email: [email protected]

LIC IPO Registrar

KFin Technologies Limited

Phone: 04067162222, 04079611000
Email: [email protected]

LIC IPO Lead Manager(s)

  1. Axis Capital Limited 
  2. BofA Securities India Limited
  3. Citigroup Global Markets India Private Limited 
  4. Goldman Sachs (India) Securities Private Limited 
  5. ICICI Securities Limited 
  6. J.P. Morgan India Private Limited
  7. JM Financial Consultants Private Limited 
  8. Kotak Mahindra Capital Company Limited 
  9. Nomura Financial Advisory And Securities (India) Pvt Ltd 
  10. SBI Capital Markets Limited 

LIC IPO Questions

  1. Is there a chance of listing gain in LIC IPO?
    The listing gain in an IPO share depends on many factors:
    • Demand and supply of IPO shares on the day of listing
    • IPO shares pricing
    • The market situation on the day of listing
    • The demand for IPO shares (IPO oversubscription)
    • Russia Ukraine conflictIt is not easy to predict listing gains in LIC IPO due to its large size. We have not seen such a large IPO in India before.
  2. Is it good to apply for LIC IPO?
    It is difficult to say at this point. The decision depends on many factors like issue price, discounts offered, and the market situation on the day of listing.Note that IPO share price varies a lot in the first few weeks of listing. It is considered a high-risk investment as one can make or lose big money.
  3. When will LIC IPO open?
    LIC IPO may open around 15th March 2022. The issue open date for LIC IPO is not finalized. LIC field its DRHP document for approval with SEBI on 13th Feb 2022. Once its approved, LIC will announce the issue open date.
  4. What is LIC IPO expected price?
    The LIC IPO price is yet to be announced. It’s difficult to say what will be the expected price as it depends on many factors. The Government of India will decide the LIC IPO issue price and discount to retail and employees a few days before IPO opens.The LIC IPO price could be anywhere between Rs 1500 to Rs 3200 per share.