Page 33 - Banking Finance September 2022

ARTICLE

Important figures in LIC IPO-
LIC was formed in 1956 with amalgamation of 154 local
players along with 16 foreign companies and 75
provident companies.

It will issue shares to employees and policy holders at 5
% & 10 % respectively reservation portion of the offer
size
It is expected for Rs. 31.60 crore shares.
LIC is Strongest Insurance brand in Asia by London based
consultancy Branch finance which ranks it at No.3
This IPO is likely to be the largest in the Indian market, LIC brand value of $ 8.65 billion and has increase by 6.8%
with an estimated size of 6,32,49,97,701 shares in last financial year
outstanding after the issue.
LIC is having 3 Million field agents with 300 Million +
The price band of this public offering is likely to be policy holders
between Rs. 2000 to Rs. 2100.
It’s having 66% market share currently in our country
According to a report, LIC has around 69% share in
Having big Market cap of $100-150 Billion
India’s overall insurance sector. Additionally, about Rs.
Dividend payment policy of LIC is 5% paid to govt and
290 crores fund base is the basis of this company’s
another 95 % distributed to policy holders currently.
operations.
Current FY 21-22 profits was Rs.37,000 crore & profit
Finance Minister Nirmala Sitharaman launched the IPO of after tax Rs.1437 crore in first half of F.Y
LIC in the financial year beginning April 1. Currently, the
LIC has more than 15 % stake in ITC and L& T most
government owns 100 per cent stake in LIC.
important for Infrastructure and FMCG in developing
nation like India.
Once listed, LIC is likely to become one of the biggest
Selling of stake in IDBI and also reducing in SBI
domestic companies by market capitalisation with an
estimated valuation of Rs 8-10 lakh crore.
Different modes for ASBA application-
The Department of Investment and Public Asset
Internet Banking- Applications are registered through
Management (DIPAM), which manages the government's
internet banking. Lien is marked successfully in the
equity in state-owned companies, has selected actuarial
Account by the system and downloadable
firm Milliman Advisors for ascertaining the embedded value
acknowledgement is made available to the customer
of LIC for meeting the government's disinvestment target.
Unified Payment Interface- Applications are backed by
amount through UPI transactions. In this applications
Last month, DIPAM appointed 10 merchant bankers,
are registered on the websites of RTA/handlers etc. Lien
including Goldman Sachs (India) Securities, Citigroup Global
is marked by the system in the account with us and
Markets India and Nomura Financial Advisory and Securities
acknowledgement is received by the customer from
(India), to manage the mega initial public offering of the
RTA/ handlers’ web portal
country's largest insurer.
Physical Applications and applications backed by amount
Other selected bankers include SBI Capital Markets, JM through Internet Banking are monitored Bank (SCSB) .
Financial, Axis Capital, BofA Securities, J P Morgan India, The Bidding process and exchange of files with NSE/BSE
ICICI Securities and Kotak Mahindra Capital Co Ltd. and coordination/ compliance with RTA & Sponsor Bank
is done by Bank.
The Cabinet Committee on Economic Affairs had in July
cleared the initial public offering proposal of LIC. Happy Investing!!!

BANKING FINANCE | SEPTEMBER | 2022 | 33