LIC IPO to open on May 4; sets price band at Rs902-949 per Equity Share

27 Apr 2022 , 05:45 PM

Life Insurance Corporation of India (“LIC” or the “Corporation”) has fixed the price band at Rs902 to Rs949 per Equity Share for its maiden public offer. The initial public offering (“IPO”) of the Corporation will open on Wednesday, 4 May 2022 for subscription and close on Monday, 9 May 2022.

Investors can bid for a minimum of 15 Equity Shares and in multiples of 15 Equity Shares thereafter.

The IPO is through an offer-for-sale (“OFS”) of up to 221,374,920 Equity Shares by the President of India, acting through the Ministry of Finance, Government of India (“Selling Shareholder”) (“Offer”). The Offer includes a reservation for Eligible Employees and Eligible Policyholders.

LIC, India’s largest life insurer, had a market share of 61.6% in terms of premiums or GWP, 61.4% in terms of New Business Premium (or NBP), 71.8% in terms of the number of individual policies issued, and 88.8% in terms of a number of group policies issued, for the nine months ended December 31, 2021 (Source: the CRISIL Report).

LIC was formed by merging and nationalizing 245 private life insurance companies in India on September 1, 1956, with an initial capital of ₹50.00 million. LIC is the fifth largest life insurer globally by GWP (comparing LIC’s life insurance premium for Fiscal 2021 to its global peers’ life insurance premium for 2020) (source: the CRISIL Report) and the largest asset manager in the country as of December 31, 2021 (source: the CRISIL Report), with an established track record of financial performance and profitable growth. As of December 31, 2021, the Corporation covered 91% of all districts in India and had the largest individual agency network among life insurance entities in India, comprising approximately 1.33 million individual agents.

LIC’s product portfolio in India comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. LIC’s group product portfolio in India comprises 11 group products. Customers in the age bracket 27 to 40 years old accounted for approximately 42% and 42% of individual policies sold in Fiscal 2021 and the nine months ended December 31, 2021, respectively. LIC’s omnichannel distribution platform for individual products currently comprises (i) individual agents, (ii) bancassurance partners, (iii) alternate channels (corporate agents, brokers and insurance marketing firms), (iv) digital sales (through a portal on our Corporation’s website), (v) Micro Insurance agents and (vi) Point of Sales Persons — Life Insurance.