The Life Insurance Corporation (LIC) aims to introduce an initial public offering (IPO) in the second part of the financial year 2020-2021. The government of India intends to raise approximately Rs 80,000 crore to Rs 90,000 crore from the sale of its interest in LIC, making this IPO the country’s largest ever. This is part of the government’s intention to collect Rs 1.75 lakh crore via a privatization initiative in the current financial year, which ends in March. Read below to check the detailed information related to the LIC IPO Date 2024 like Highlights, Objectives, Benefits of investing in the LIC Initial Public Offering (IPO), Features, Companies in which LIC has a stake, Application Process, Strengths, Opportunities, Lot Size, Subscription Breakup, Competitive Analysis, and much more.
LIC IPO Date 2024
The Government of India owns the Life Insurance Corporation of India, which is India’s one of India’s largest investment and insurance companies. LIC is the only public sector life insurance business in India having a large influence in both rural and urban areas. It has 8 zone offices and 113 divisional offices. The Central Government plans to list the Life Insurance Corporation of India (LIC) by the end of this financial year as part of its ambitious disinvestment program.
Highlights of LIC IPO
| Name | to satisfy the need for working capital and to achieve the company’s objectives. |
| Introduced By | Life Insurance Corporation (LIC) |
| Objective | to satisfy the need for working capital and to achieve the company objectives. |
| Launch Date | Soon |
Objectives of LIC IPO
This IPO is expected to be the largest in the Indian stock market’s history. The main aim of LIC’s Initial Public Offering (IPO) is to satisfy the need for working capital and to achieve the company’s objectives.
Benefits of investing in the LIC Initial Public Offering (IPO)
Some of the main reasons for investing in this initial public offering are as follows:
- The Life Insurance Corporation of India is a well-known brand with a strong market presence and solid financial status.
- In the June quarter, the corporation made stock market profits of almost Rs 10,000 crores. For many, LIC is an attractive investment prospect because of its excellent financial position, large fund size, and government affiliation.
- Investing in LICs may provide major benefits to investors.
LIC IPO Features
Some of the main features of LIC Initial Public Offering are as follows:
- LIC is the country’s only government-owned insurance company.
- Around 245 insurance companies were merged to establish the organization.
- It employs over 1.14 lakh people.
- LIC holds 69 percent of the market share in the life insurance industry, according to the 2019-2020 annual report.
- In addition to life insurance, the company offers pension funds, mutual funds, home financing, and credit card services.
- In addition to accepting digital payments, the company excels at cross-selling little sachets of insurance and loans.
- There were around 13.53 lakh individual LIC agents as of March 31.
Other IPO’s
Key Dates
The tentative Key Dates of LIC’s Initial Public Offering are given in the table below:
| IPO Open Date | Not Announced Yet |
| IPO Close Date | Not Announced Yet |
| Basis Of Allotment Date | Not Announced Yet |
| Refunds Initiation | Not Announced Yet |
| Credit Of Shares ToDemat Account | Not Announced Yet |
| Date of IPO Listing | Not Announced Yet |
| UPI Mandate Expiry Date | Not Announced Yet |
Companies in which LIC has a stake
The Life Insurance Corporation of India (LIC) is considered India’s largest investor. In the current financial year, it has purchased shares worth Rs 90,000 crores. Furthermore, by the end of the current financial year, it intends to have invested Rs. 8 lakh crores in the stock market. LIC’s most significant investees are listed in the table below:
| Stock | Quantity Held | Holding % |
| Bank Of Baroda | 248,334,291 | 4.80% |
| Canara Bank | 133,627,205 | 8.11% |
| ABB Power Products And Systems India Ltd. | 1,881,348 | 4.44% |
| Biocon Ltd. | 49,374,988 | 4.11% |
| PTC India Ltd. | 17,654,072 | 5.96% |
| ABB India Ltd. | 8,376,287 | 3.95% |
| Hindustan Zinc Ltd. | 96,246,636 | 2.28% |
| Titan Company Ltd. | 35,163,104 | 3.96% |
| Reliance Infrastructure Ltd. | 6,989,930 | 2.68% |
| Indian Overseas Bank | 228,087,493 | 1.21% |
| Aditya Birla Capital Ltd. | 51,407,882 | 2.13% |
| BEML Ltd. | 515,435 | 1.24% |
| Aban Offshore Ltd. | 1,000,000 | 1.71% |
Steps to Apply for LIC IPO
- First of all, go to the official website of LIC.
- On the homepage of the website, click on the IPO Section followed by IPO Listing.
- Now click on the Open IPO.
- On clicking the LIC IPO option, you can directly click on the Subscribe button to apply or even view the IPO details.
- On the Subscribe Screen or Page, you will be required to enter the cut-off price, the number of lots, and UPI ID, and tap Verify.
- Once you select the ‘Subscribe’ button. Your bid will be executed.
- You can even check the status of your IPO bid in the IPO Transactions section.
Another way to Apply for LIC IPO
By UPI
You can also apply for the LIC Initial Public Offering by UPI. To apply for the LIC Initial Public Offering using UPI, follow the below steps:
- First of all, Link your bank account to a reliable UPI ID
- After that register it with your Angel One account.
- Now proceed further to book LIC IPO shares using the ID.
- Finally, confirm the payment on the UPI app, and block the amount for allotment.
Strengths of the LIC IPO
Some of the main Strengths of the LIC Initial Public Offering are as follows:
- Several options are available: LIC has a variety of insurance options to choose from. Life insurance policies, money-back plans, endowment plans, insurance riders, and term insurance plans are among the most popular products.
- Business portfolio diversification: LIC has a diverse business portfolio. LIC Housing Finance, LIC Pension Fund, LIC Card Services, and LIC Mutual Fund are some of the company’s most well-known lines of business.
- A large fund base: The corporation has a fund base of around Rs. 289.57 crores. Furthermore, India’s largest investor has a strong financial position and enough freedom to grow and extend its portfolio.
Opportunities of the LIC IPO
Some of the main opportunities of the LIC Initial Public Offering are as follows:
- Online services: LIC’s online services appeal to a wide number of tech-savvy customers. By utilizing the IPO revenues to develop a large digital footprint, LIC could tap into the urban market like never before.
- Increased disposable income: As people’s disposable income rises, so does their knowledge of the need to be insured, which could help LIC continue to develop.
Weaknesses of the LIC IPO
Some of the main weaknesses of the LIC IPO are as follows:
- PSU Restrictions: As a PSU, LIC is subject to several restrictions. Such limitations may prove to be a stumbling hurdle to the company’s operating and expansion aspirations.
- Large workforce: LIC has a large workforce, with around 1 lakh employees. Maintaining such a huge workforce can be difficult, especially during a recession.
Threatens of the LIC IPO
Some of the main threats of the LIC IPO are as follows:
- Threatens: These competitors’ unique offers and more tailored services may represent a threat to LIC.
- Changes in fiscal policy: LIC’s policies may be influenced by changes in the RBI’s monetary and fiscal policies. Changes like this can hurt a company’s profits or scope of business.
LIC IPO Lot Size
The lot size of the LIC IPO is given in the table below:
| Minimum Lot Size | To be announced |
| Maximum Lot Size | To be announced |
Subscription Breakup of LIC IPO
The subscription breakup of the LIC IPO is given in the table below:
| Non-Institutional Investors | To be announced |
| QIBs | To be announced |
| Retail Individual Investors | To be announced |
Competitive Analysis of the LIC IPO
The Life Insurance Corporation of India (LIC) is the country’s largest life insurance company, with a significant market value. These organizations, on the other hand, are among LIC’s most notable competitors. In the previous year, the table below shows its competition and market position.
| Competitor | Market Capitalisation | Gains |
| ICICI Prudential Life Insurance | 45.01% | 44.97% |
| General Insurance Corporation of India | 25.15% | 24.91% |
| SBI Life Insurance | 20.95% | 20.84% |
| ICICI Lombard General Insurance Company | 20.44% | 20.77% |
| HDFC Life Insurance | 14.45% | 14.63% |
| New India Assurance Company | 48.21% | 48.21% |