# Everything You Need to Know About the LIC IPO
**URL:** https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070
**Category:** IPOs
**Created:** [February 14, 2022, 4:27pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070 "2022-02-14T16:27:08Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [February 14, 2022, 4:27pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/1 "2022-02-14T16:27:08Z")
The much-awaited LIC IPO will finally be opening for the subscription. The LIC IPO will open for subscription on May 4th and close on May 9th. Through the IPO, the Government of India is looking to sell a 3.5% stake in the company via an offer for sale of equity shares aggregating up to Rs. 21,000 crores. Making it the largest ever IPO in India.
### IPO Details
| Issue Period | 4th May 2022 to 9th May 2022 |
| --- | --- |
| Price Range | Rs. 902 - 949 |
| Minimum Bid Quantity | 15 and in multiples thereof |
| Finalization of Allotment | 13th May 2022 |
| Initiation of Refunds | 14th May 2022 |
| Credit of Shares | 16th May 2022 |
| Date of Listing | 17th May 2022 |
| Mandate end date | 24th May 2022 |
| Anchor Investors Lock-in End Date | 8th June 2022 |
### About the Company:
LIC was incorporated in 1956 after merging and nationalizing 245 private life insurance companies in India. It is the largest life insurer in the country, with a market share of 64% in terms of premiums. 74.6% market share in terms of number of individual policies issued, and 81.1% market share in terms of number of group policies issued for Fiscal 2021.
As of September 30, 2021, LIC operated 8 zonal offices, 113 divisional offices, and more than 4,700 branch/satellite and mini offices.
LIC is the largest asset manager in India with an AUM of Rs. 39.56 lakh crore as of September 30, 2021, on a standalone basis. Which was more than 3.3 times the total AUM of all private life insurance players in India and 18.5% of India’s annualized GDP for Fiscal 2022. LIC is also the biggest player in India’s equity markets, as of September 30, 2021, its investments in listed equity represented around 4% of the total market capitalization of NSE.
**Financials**
| Financial Year Ended | Revenue (₹ Crores) | PAT (₹ Crores) | EPS (₹) |
| --- | --- | --- | --- |
| March 2019 | 570,809.57 | 2,627.38 | 4.15 |
| March 2020 | 645,605.47 | 2,710.48 | 4.29 |
| March 2021 | 703,709.45 | 2,974.14 | 4.7 |
| Period ended September 30, 2021 | 336,972.92 | 1504.01 | 2.38 |
For more information, you can check the [IPO Prospectus](https://archives.nseindia.com/content/ipo/RHP_LICI.zip) filed by the company.
* * *
### Policyholders quota
The IPO will also have 10% of the issue size reserved for the policyholders. You can check out more on the policyholder’s quota in [this post](https://tradingqna.com/t/lic-ipo-policyholder-quota/127055).
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### Some interesting bits from the DRHP:
LIC has the largest network of agents in India. As of March 31, 2021, LIC had 1.35 million individuals in its agent network compared to 1.10 million individuals for the entire private life insurance industry.
| FY21 | Number of Individual Agents In India (As of March 31, 2021) |
| --- | --- |
| LIC | 1,353,808 |
| SBI Life | 170,096 |
| HDFC Life | 112,012 |
| ICICI Prudential Life | 187,560 |
| Max Life | 55,217 |
| Bajaj Allianz Life | 88,102 |
| Median of Top 5 private players | 112,012 |
LIC also generates a major portion of its premium through individual agents, contributing approximately 94% of its NBP in Fiscal 2021. In Fiscal 2019, Fiscal 2020, Fiscal 2021, and the six months ended September 30, 2021, individual agents were responsible for sourcing 96.69%, 95.73%, 94.78%, and 96.42% of LIC’s new business profit for its individual products in India.
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Growth of the life insurance industry over the years. Until 2000, LIC was the only player in the life insurance segment, this changed after the government allowed FDI in the sector.
* * *
Life insurance premiums have grown at an 11% CAGR from Fiscals 2016 to 2021. Largely as a result of expansion in the distribution network, the introduction of different government schemes and financial inclusion drives.
LIC holds a 64% share of the total life insurance premium and grew at 9% CAGR from Fiscals 2016 to 2021. Private insurers grew at an 18% CAGR growth during the same period.
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Global life insurance premium growth:
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India’s protection gap was $16.5 trillion as of CY 2019, which was much higher compared to its Asian counterparts. The protection gap for India was 83% as of CY 2019, the highest amongst all countries in Asia-Pacific, as per the Swiss Re report “Closing Asia’s Mortality Protection Gap – July 2020”
* * *
**Where does LIC stand amongst global peers?**
Globally, Allianz S.E is the largest life insurer in the world in terms of life insurance premiums. Amongst the top global insurers, LIC is the only Indian player. LIC is ranked fifth globally in terms of life insurance premiums.
* * *
Ping An Insurance of China is the largest insurer in terms of total assets followed by Allianz SE. and AXA S.A. LIC is the eighth largest player with total assets.
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### What is the LIC policyholders category? Will LIC policyholders get any benefit if they apply?
“Policyholder” is a new category introduced for the LIC IPO, this category will have up to 10% of the issue reserved for the customers who hold policies of LIC. To apply in the policyholder category, you need to fulfill two conditions listed in the prospectus:
1. You have purchased your LIC policy on or before Feb 13th, 2022.
2. Your PAN has been mapped to your LIC policy on or before Feb 28th, 2022.
**Note:** If you’re applying in the policyholder category through your Zerodha account then, the PAN used for LIC policies has to be the same as that registered with your Zerodha account.
* * *
### How do I apply to the LIC IPO?
You can apply for the LIC IPO using any [supported UPI app](https://support.zerodha.com/category/q-backoffice/ipo/articles/apps-banks-supporting-upi-asba) by following two steps:
- Enter your bid on [Console](https://console.zerodha.com/portfolio/ipo/)
- Accept UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. [Click here](https://support.zerodha.com/category/q-backoffice/ipo/articles/how-to-apply-for-ipos-and-how-to-stay-informed-of-new-ones) to learn more.
### Are there any discounts offered for applying LIC IPO in different categories? How to avail this discount?
Yes, there is a discount for online applications under different categories. The IPO application process remains the same and the discount will be adjusted in the e-mandate blocked amount. The discounts are as follows:
| Category | Bidding at | Max Bid Amount (₹) | Basis of Allotment if respective category is oversubscribed | UPI | Syndicate ASBA | Discount |
| --- | --- | --- | --- | --- | --- | --- |
| HNI | At price | NA | Proportionate | Yes(Up to ₹5 lakh) | Yes | No |
| Retail | Cut off | Not above ₹2 lakhs | Draw of Lot | Yes | No | ₹ 45 per share |
| Policy Holders | | | Proportionate | Yes | No | ₹ 60 per share |
| Employee | | | Proportionate | Yes | Yes | ₹ 45 per share |
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### Where do I check the allotment status for LIC IPO?
You can check the allotment status for the LIC IPO on the [website of the Registrar and Transfer agent](https://kcas.kfintech.com/ipostatus/).
Alternatively, you can also check the allotment status on the [NSE website](https://www.nseindia.com/invest/check-trades-bids-verify-ipo-bids).
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---
### Author:  [@Abhijit](https://tradingqna.com/u/Abhijit)
#### Post date: [April 30, 2022, 6:34am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/2 "2022-04-30T06:34:34Z")
Will I be able to apply as a policyholder for the LIC IPO in Zerodha? If yes, how?
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [April 30, 2022, 7:09am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/3 "2022-04-30T07:09:10Z")
> [@Abhijit](#):
>
> Will I be able to apply as a policyholder for the LIC IPO in Zerodha? If yes, how?
Yes, you will get an option to apply as a Policyholder.
The process remains the same. Only that you’ll have to select Policyholder option instead of Individual Investor from the drop-down.
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### Author:  [@Abhijit](https://tradingqna.com/u/Abhijit)
#### Post date: [April 30, 2022, 7:28am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/4 "2022-04-30T07:28:15Z")
> [@ShubhS9](#):
>
> option instead of Individual Investor from the drop-down.
thanks
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### Author:  [@suri](https://tradingqna.com/u/suri)
#### Post date: [May 1, 2022, 7:48am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/5 "2022-05-01T07:48:03Z")
Hi, @ShubhS9
Whats the impact of LIC ipo , How long will it take to be included in nifty 50? and how does that affect nifty 50 f&o Price?
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### Author:  [@Chirag1](https://tradingqna.com/u/Chirag1)
#### Post date: [May 1, 2022, 11:12am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/6 "2022-05-01T11:12:48Z")
N50 is reviewed semi-annually jan 31st and july 31st.
Last 6 months data is reviewed, so newly listed stocks must also complete 6 months.
In best case, its 31st Jan-2023 when it will be consider in index re-balance.
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [May 1, 2022, 12:19pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/7 "2022-05-01T12:19:02Z")
> [@suri](#):
>
> Whats the impact of LIC ipo , How long will it take to be included in nifty 50? and how does that affect nifty 50 f&o Price?
Not much sure about this 🙂
> [@Chirag1](#):
>
> N50 is reviewed semi-annually jan 31st and july 31st.
> Last 6 months data is reviewed, so newly listed stocks must also complete 6 months.
NSE recently changed the criteria for the inclusion of stocks in indices. As explained [here](https://tradingqna.com/t/paytm-nykaa-and-zomato-to-be-included-in-the-nifty-next-50-and-nifty-500-indexes/127593):
> [@Paytm, Nykaa and Zomato to be included in the Nifty Next 50 and Nifty 500 Indexes](https://tradingqna.com/t/paytm-nykaa-and-zomato-to-be-included-in-the-nifty-next-50-and-nifty-500-indexes/127593/1):
>
> Under the existing criteria, the minimum listing history requirement in case of new listing and companies traded after the scheme of arrangement for corporate events required constituents to have a minimum listing history of three months. Which has now been revised to one month.
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### Author:  [@suri](https://tradingqna.com/u/suri)
#### Post date: [May 1, 2022, 2:44pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/8 "2022-05-01T14:44:13Z")
Thank you @ShubhS9 , I try to study LIC DRHP but the above details is more concise.
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### Author:  [@Dhinesh\_Muthusamy](https://tradingqna.com/u/Dhinesh_Muthusamy)
#### Post date: [May 4, 2022, 3:08am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/9 "2022-05-04T03:08:17Z")
@ShubhS9 How to Get Retail Discount while Applying LIC IPO Through Zerodha ? … Pls Guide Me
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [May 4, 2022, 3:27am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/10 "2022-05-04T03:27:36Z")
> [@Dhinesh\_Muthusamy](#):
>
> How to Get Retail Discount while Applying LIC IPO Through Zerodha ?
The discount will be adjusted in the e-mandate blocked amount. The IPO application process remains the same.
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### Author:  [@ajit\_chhabra](https://tradingqna.com/u/ajit_chhabra)
#### Post date: [May 4, 2022, 5:25am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/12 "2022-05-04T05:25:13Z")
Are retired LIC employee ( pensioner ) eligible to apply in employee category in LIC IPO
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### Author:  [@ajit\_chhabra](https://tradingqna.com/u/ajit_chhabra)
#### Post date: [May 4, 2022, 5:31am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/13 "2022-05-04T05:31:14Z")
Plz somebody answer it
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### Author:  [@Praksy](https://tradingqna.com/u/Praksy)
#### Post date: [May 4, 2022, 5:53am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/14 "2022-05-04T05:53:43Z")
@ShubhS9
Can a retail guy make 2 bids one as a retail investor and another as a policyholder?
Also, from your post, it seems retail investors and policyholders cannot use ASBA and have to compulsorily use UPI only for bidding. Is this correct?
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### Author:  [@Meher\_Smaran](https://tradingqna.com/u/Meher_Smaran)
#### Post date: [May 4, 2022, 6:00am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/15 "2022-05-04T06:00:53Z")
> [@Praksy](#):
>
> Can a retail guy make 2 bids one as a retail investor and another as a policyholder?
Yes. You can.
But one application has to be done from console and the other one from Netbanking ASBA.
Do check this article out :
[https://support.zerodha.com/category/console/ipo/ipo-application/articles/more-than-one-application-in-lic-ipo](https://support.zerodha.com/category/console/ipo/ipo-application/articles/more-than-one-application-in-lic-ipo)
---
### Author:  [@Prakashsingh](https://tradingqna.com/u/Prakashsingh)
#### Post date: [May 4, 2022, 6:06am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/16 "2022-05-04T06:06:21Z")
Here’s the live LIC IPO Subscription data from NSE for those who are interested :
[https://www.nseindia.com/market-data/issue-information?symbol=LICI&series=EQ&type=Active](https://www.nseindia.com/market-data/issue-information?symbol=LICI&series=EQ&type=Active)
---
### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [May 4, 2022, 6:22am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/17 "2022-05-04T06:22:58Z")
> [@ajit\_chhabra](#):
>
> Are retired LIC employee ( pensioner ) eligible to apply in employee category in LIC IPO
No, Ajit. Only current employees are eligible to apply under the Employee category.
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### Author:  [@manojlds](https://tradingqna.com/u/manojlds)
#### Post date: [May 5, 2022, 8:45am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/18 "2022-05-05T08:45:45Z")
Why does the Console page say this:
> Bidding with cut-off price, cancellation and reduction of bid size is not allowed for these applications due to regulations.
Should I check cut off or not when applying?
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [May 5, 2022, 10:13am UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/19 "2022-05-05T10:13:48Z")
If you’re placing bid worth more than 2 lakhs, this application will be considered under HNI category. In this category, bidding with cut-off price, cancellation and reduction of bid size is not allowed due to regulations.
> [@manojlds](#):
>
> Should I check cut off or not when applying?
No, you cannot use cut-off option. You will have to enter the price.
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### Author:  [@manojlds](https://tradingqna.com/u/manojlds)
#### Post date: [May 5, 2022, 1:45pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/20 "2022-05-05T13:45:54Z")
Sorry just to confirm - I am applying in retail and just one lot. Should I not be checking the cut off checkbox and entering the price?
Have done exactly one IPO before and had checked the cut off then.
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [May 5, 2022, 1:59pm UTC](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070/21 "2022-05-05T13:59:48Z")
> [@manojlds](#):
>
> Sorry just to confirm - I am applying in retail and just one lot. Should I not be checking the cut off checkbox and entering the price?
>
> Have done exactly one IPO before and had checked the cut off then.
If you’re applying for an amount less than 2 lakhs then you can check the cut-off box. That note is only for those applying for amount over 2 lakhs.
[Next page](https://tradingqna.com/t/everything-you-need-to-know-about-the-lic-ipo/127070.md?page=2)