After some delay because of the unfavourable influence of the Russia-Ukraine conflict on inventory markets, the Initial Public Offering (IPO) of India’s largest life insurance coverage firm – Life Insurance Corporation (LIC) of India – is scheduled to open on May 4, 2022. The IPO window will shut on May 9, 2022.
The supply dimension of the LIC IPO is as much as Rs 20,557 crore and the worth band is from Rs 902 to Rs 949, with the lot dimension of 15 shares and in multiples thereof.
The excellent news for retail traders planning to put money into LIC IPO is {that a} low cost of Rs 45 per share is being provided to retail particular person bidders and in addition to eligible Employees.
It’s even higher for the LIC policyholders, as a reduction of Rs 60 per share is being provided to eligible policyholders bidding within the Policyholder Reservation Portion.
So, the retail bidders and eligible staff can apply in worth band of Rs 857 – Rs 904, whereas the eligible policyholders can apply in worth band of Rs 842 – Rs 889.
Company Strengths
The LIC of India has issued roughly 2,10,000 particular person insurance policies in India and has about 75 per cent market share in new particular person coverage issuances.
In December 2021, LIC’s portal had 1,86,000 registered customers and the Corporation’s cell app had 51,300 registered customers.
Moreover, ‘Brand LIC’ was recognised because the third strongest and tenth most respected international insurance coverage model in 2021, as per the “Insurance 100 2021” report launched by Brand Finance.
Potential Risks
With over Rs 20 lakh crore invested in debt devices, dependency on rate of interest fluctuations could have an effect on profitability of LIC of India.
If precise claims skilled and different parameters deviate from the assumptions utilized in pricing merchandise and setting reserves, it may have a cloth hostile impact on enterprise.
Source: www.financialexpress.com”