LIC IPO
The much-awaited Life Insurance Corporation of India (LIC) initial public offering (IPO) is likely to be launched by the Government of India in the second week of March 2022. It is said to be the biggest IPO in the Indian stock market. But, its price band is yet to be disclosed.
Now that LIC is going public, here’s everything you need to know about it.
LIC is a household name in the Indian insurance sector. It holds a strong market share of over 60% when it comes to premium. You probably have a significant investment of your family’s savings in LIC’s insurance policies.
About LIC
LIC was established in 1956 following a merger of 245 private insurers and fund societies. Before private insurance companies emerged, LIC had monopolized the insurance industry. Now there are various private insurance companies in the Indian market. Yet, LIC has a market share of more than 74.58% as of the financial year-end in 2021.
LIC is now a 66-year-old institution-owned completely by the Government of India. It continues to dominate India’s insurance sector and is the 5th largest international insurance company. With over 280 million policies, it was reported to have 39.56 trillion Rupees or 527 billion dollars in assets under management, which is more than the whole Indian mutual fund sector.
How to apply for LIC IPO?
If you’re looking forward to applying for the LIC IPO, here’s how you can do it:
1. UPI
All you need to do to invest in LIC IPO shares is link your bank account to the UPI of your choice.
Register your UPI account with stockbrokers like ANSPL. Once you complete the formalities, you can book LIC shares. Start the transaction, confirm payment on the UPI app of your choice, and block the allotment amount.
2. Demat Account
If you’re a first-time investor, you’ll need to open a DEMAT account with ANSPL. Then, you’ll need to log in to the portal and start investing in IPOs like the LIC IPO.
Highlights of the LIC IPO
With an increase in disposable income and more awareness about insurance, LIC has the potential to grow in the future. LIC’s strength lies in its multiple offerings in the form of various insurance plans and products including life insurance policies, money back plans, term insurance plans, and so on. LIC also has had a diversified portfolio over the decades of its existence. It includes pension funds, housing finance, card services, and mutual funds. The company’s sizeable fund base can help it expand its portfolio further.
Limitations of the LIC IPO
Because LIC is a Public Sector Undertaking or PSU, it has various restrictions that can affect the growth and expansion of the company. Besides, its enormous workforce can be challenging to manage during financial crises. Also, with the increased activity of private insurers, LIC may find increasing competition along this path.
Investing in LIC IPO
Now that you know the pros and cons of the LIC IPO, you can choose to invest in it wisely. For any additional support, ANSPL is here to answer all your queries and help you invest your hard-earned money with care.
