Life Insurance Corporation of India is preparing for the launch of its biggest initial public offering in the share market in India. LIC which is known as the country’s biggest insurance company has set per share price at Rs. 902-949. It will open its subscription on May 4. With this type of price band govt hopes to garner 21000 crores. Even after the reduced size of the price band at Rs. 20, 557 crores. LIC IPO is still going to be the largest public offering in the country.
Things to know about LIC of India
The ownership of LIC is owned by the Government of India. It is the most popular insurance company that has its presence in both rural as well as urban areas. Its operations take place in 8 zones and 113 divisional offices. The objective of LIC in terms of disinvestment is to generate revenue of 21000 crores by releasing 3.5% of its share and basically to improve the brand image and create a market for equity shares. The best reason to make an investment here is because of its brand name which is as old as 65 years and has got a network of 13 lakh agents and it has a strong framework of risk management.
The best way to apply for LIC IPO
Following is the check-list regarding how to apply for LIC IPO:
The first and foremost step is to link the bank account with the UPI ID. Important to register your UPI ID with your demate account. As the third step subscribe to LIC IPO and approve the payment on UPI ID
Important highlights about LIC IPO
The moment you talk about LIC it is the only government-operated insurance company in India. It was formed by merging 245 insurance companies into one entity. Apart from life insurance company also deals with mutual funds, pension funds, housing finance, and card services. Further, it was observed that on 31 March 2021 there were around 13.53 lakh individual LIC agents. Also, it has 1.14 lakh employees. As an employee of LIC, one can get a discount of Rs 45/- per share.
The advantages of investing in LIC IPO
There are a lot of strengths of investing in LIC IPO and they are explained as follows: there are multiple offerings– the insurance plans offered by LIC are various especially in terms of insurance policies, term insurance, endowment plans, and money-back plans, and so on. A business portfolio diversified: when it comes to LIC it has a diversified business portfolio the noteworthy ones are housing, pension, mutual fund, and so on. Great financial standing: India’s largest investor has a great financial standing. It has the flexibility to grow and expand its portfolio.
Some weaknesses that one may come across in terms of investment in LIC IPO are restrictions because of PSUs: because it is PSU there may be various roadblocks in the operation of the company in case of disinvestment. Changes in fiscal policy: changes in RBI’s fiscal policy can prompt LIC to change its policies?