In the year 1956 LIC established 5 zonal offices with 33 divisional offices and 212 Branch offices. As of today, LIC operates with 8 zonal offices, 113 divisional offices, and 2048 digitally well-equipped branch offices, and 1381 satellite offices across the country.
In partnership with various banks and financial institutions the company also offers an online premium collection facility to the policyholders.
On the business front, LIC grew from Rs 200 crore of business in 1956 to Rs 1000 crore in 1968-70. As recent in 2019-20 the business collected around 2.19 lakh new individual policies with a first-year premium income of Rs 51227.83 crore.
During the Financial Budget 2021 it was announced that LIC will launch an IPO in 2021. The Indian government has appointed Deloitte as the pre-initial public offer (IPO) transaction advisors. The IPO launch was slowed down due to the pandemic, but the post-COVID government will kick start the process in full swing. There are no official dates announced yet, hence once the pre-IPO phase is completed only then we will know about the IPO launch dates.
Below are a few details about the LIC IPO -
It is said that the Indian government will not sell more than 10% of its stake in LIC. Many experts and analysts estimated that the valuation will go up to Rs 8 lakh crores to Rs 11 lakh crores. But having said we all have to wait for information from official sources as these are just the estimates.
There are no speculations of the price yet as the price will be dependent on the valuation and share price offered by the competitors in the insurance market. The issue price will be announced one week prior when the issue becomes available for public subscription.
As mentioned earlier based on estimates by the experts the valuation of LIC can be between Rs. 8 lakhs to 11 lakhs crores. Nothing is official and determining the actual valuation of LIC is going to be tricky given the size of the company.
The Indian government also has plans for LIC policyholders and there is news that up 10% of the shares will be reserved for them. Before the IPO launch around one crore, DEMAT accounts will be open as the majority of the LIC policyholders don’t have a DEMAT account. In the LIC IPO allotment and listing documents, you will get information related to share allocations. This document is published by the registrar of the IPO. You can also know about the demand for the IPO in this document.
On 1st Feb ’21 Government announced the LIC IPO launch during the Union Budget. Deloitte is appointed as pre-IPO transaction advisors.
Like every other IPO investor can apply for LIC IPO through any stockbroking firms or banks that have ASBA service.
There are no final details but the employees of LIC IPO may have a special reservation and even they can invest in the LIC IPO.
There will be no impact on the existing policyholders.
Yes, the existing policyholders will benefit from the IPO launch as the operations will become more transparent. Another benefit is that the policyholders will get a chance to invest in the company.
Follow the below-mentioned steps to apply for LIC IPO through Edelweiss
Investors can buy LIC IPO using UPI or United Payment Interface, an online payment method.
Yes, it is mandatory that you should have a Demat account to invest in LIC IPO.
Open a Demat account with us and start your investment journey today!