Life Insurance Corporation of India’s initial public offering saw full subscription of its non-institutional investor segment on the fourth day of bidding. The issue opened for subscription on Wednesday, May 4, 2022 and continues to see a strong interest from all investor categories.
The portion reserved for eligible policy holders was subscribed 4.67 times, reservation for eligible employees was subscribed 3.54 times, Retail Category was subscribed 1.46 times; the non-institutional category witnessed subscription of 1.08 times and qualified institutional buyers category saw subscription of 0.67 times
The offer received bids for 26,83,16,685 shares against the offered 16,20,78,067 equity shares (excluding shares offered to anchor investors), as per the 7:00 pm data available on the bourses. The IPO is through an offer-for-sale of up to 221,374,920 Equity Shares of Face Value of Rs 10 each.
RBI vide its Circular dated May 4 recommended all bank branches designated to handle ASBA applications kept open to public on Sunday, May 8,2022. The same reflect on the exchanges and bids will be accepted on Sunday between 10am to 7pm.
The issue will be open for subscription till Monday, May 9, 2022. This is possibly the first time a public offer has received a special dispensation.
India's largest life insurer, LIC had a market share of 61.6 percent in terms of premiums or GWP, 61.4 percent in terms of New Business Premium (or NBP), 71.8 percent in terms of number of individual policies issued, and 88.8 percent in terms of number of group policies issued, for the nine months ended December 31, 2021.
Kotak Mahindra Capital Company Limited, Axis Capital Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, J.P. Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the book running lead managers to the issue.
LIC formed by merging, nationalizing 246 private life insurance firms
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 at December 31, 2021 (source: the CRISIL Report), with an established track record of financial performance and profitable growth. As at 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 individual 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. LIC’s omni-channel 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.
