LIC IPO Journey begins ⏳

The Journey to India’s Most Awaited and Biggest IPO has officially kick-started. An actuarial valuation exercise has arrived at a valuation of 150 Billion $ for this Insurance and investment behemoth i.e.,LIC. The company is set to do more such valuation exercises and also start road shows from December for its initial share sale.

The Government seems to be keen to rope in Fixed Income funds and Long term pension and sovereign funds as LIC’s key shareholders as anchor investors (who are mainly long term investors) instead of hedge funds and short term oriented equity funds who mainly focus on short term returns.

Here are some of the interesting facts about LIC : 10 interesting facts you didn't know about LIC - Blog by Tickertape

Ever wondered what does LIC do with its humongous money? This article throws some light on it : What does LIC do with its money?

Some of the recent updates from LIC :

  • LIC has issued 2.1 Crore fresh policies and settled 2.28 Crore policies in 2020-21.

  • Profits from equity market for the year 2020-21 is 36900 Crores. (vs 18370 Crores in 2019-20)

  • Fresh investments by LIC in the year 2021-21 is 94000 Crores (vs 60000 Crores in 2019-20)

The above details were taken from the data provided by LIC here

Currently It’s LIC vs the rest of the field. Lets see how LIC fares against other private players in some of the key metrics :

1. Share of Single Premium products (Indicating the share of lumpsum products companies sell)

2. Market Share in the group business.

3. Trend in Average Policy Ticket Size.

4. Number of Regular policies issued.

5. Total Agent Count.

Source : MOFSL Report

Let’s share and discuss other interesting data points and updates regarding LIC and its IPO.

What are your initial thoughts on the initial valuation of 150 Billion US dollars for LIC ? Is it looking attractive compared to other Insurance players? What are the Pros and Cons of investing in LIC?

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LIC has issued a public notice to all the policy holders regarding updation of their PAN details in the company’s records. As u all might be aware, 10% of the issue is reserved to LIC policy holders.

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When will it begin, any idea ? Can’t wait for this one.

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Preparation by the company is in full flow is what Im hearing @MarginCaller . My parents have policy in LIC and if the PAN is updated, they may get some allotment . If nt allotment, atleast some concession for being their policyholder.

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This IPO is going to be the main highlight of first half of 2022. Bahubali of Indian markets.

Can anyone give some reasons as to why LIC could be a better investment compared to other insurance companies keeping in view that there is huge competition in insurance sector, the insurance penetration is very low and knowing how govt companies perform, the private sector will most probably gain market share while LIC will start loosing its share?

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@Siddy_B In my humble opinion, Market may view LIC as a massive wealth creating AMC more than an insurance company. It is so huge that it will take ages for others to take its pie

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They create wealth and use it to buy companies like idbi bank.

At 3.8 million Crores; LIC’s assets are more than the entire Indian MF industry :joy:

Interesting update … Govt is infact seeking a valuation of 200+ Billion dollars for LIC

Wow that’s a mammoth valuation.

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can i apply in both categories policy holder quota as well in individual quota also ?
if any one caetgory only means , which category would have more chance to get allottment ?

Wow. This means LIC mcap could be over 30 lac crore within a year of listing :wink:

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Even the mighty LIC needs to clean up its books before going public. Nice.

Exciting times ahead

My conspiracy theory is that DII are sustaining market (against constant outflow of FII) and keeping it buoyant for LIC IPO :slight_smile:
I am worried that DII support will go post LIC IPO and might result in crash.

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