The countdown has begun! A race against time for bankers who are working round the clock to value the behemoth insurer. Departments of the government involved in the process are working just as hard as the suits to pull off a gargantuan task – list LIC , India’s crown jewel, by early March! The size of the IPO straight away allows it to make its way into Sensex and Nifty!.
Size of IPO
The IPO of LIC will be the biggest in India’s history and the government expects to raise more than Rs 1 lakh crore from the public issue, five times more than the amount raised by Paytm a couple of months ago in what became the country’s largest IPO. Many bankers have described the IPO of LIC as India’s Aramco, given the sheer size of the public issue. (Gulf oil giant Saudi Aramco raised $29.4 billion from its IPO). The government may give up 5-10% stake to raise this.
LIC has also informed more than 250 million LIC policy holders that they would be in a position to own a piece of the company VIA a 10% Policyholders Quota), provided they link their PAN card and have a Demat account.
The IPO is likely to create huge demand for demat accounts similar to the Jan-Dhan accounts policy that spurred a fintech and banking revolution in the country. Its estimated that nearly 4-5 crore unique LIC policyholders do not have demat accounts.
The Department of Investment and Public Asset Management (DIPAM) is the nodal government agency overlooking the listing of the insurer, including finalising the embedded value — a process crucial for ascribing the valuation of LIC shares, something not attempted in decades.
According to a Bloomberg report, the insurer has nearly $500 billion in assets and its valuation is estimated at around $210 billion, making it the country’s biggest ever stock listing. The properties themselves of the insurer may be worth about at $5.8 billion, as per news reports.
Brief on LIC
LIC has over 2,000 branches, more than 1.1 lakh employees, besides lakhs of agents and 286 million policies, which have helped it garner two-thirds of the market share in the insurance space. Formed in 1956 by an act of Parliament, it is backed by a sovereign guarantee, which means that the government is responsible for infusing money whenever needed. That time may be now as competition heats up in the insurance space.
The expected price band of the LIC IPO could be anywhere between Rs. 400 and Rs. 600. It will be listed at both NSE and BSE. The important dates are not known yet but its anticipated that the budget would present the deadline for the raise , likely to be the first week of March 22.
Important Note for Policyholders
To link your PAN with LIC policies, you need to log in to the official website of LIC : https://licindia.in/
Select the ‘Online PAN Registration’ window on the homepage. Put your E-mail ID, PAN, mobile number, and the correct policy number. Then request to get the OTP which will come to the mobile number, linked with your policy.
After receiving the OTP on your mobile number, put it correctly on the portal. Submit the filled-up form, and the page will show a window stating the success of your registration request.
To check whether your PAN is already linked to your LIC policy:
Visit this page.
Enter your Policy number, Date of Birth, PAN, and captcha in the respective fields and press submit to see your LIC policy and PAN link status.
Applying for LIC IPO
You can apply for the LIC IPO in these ways:
a) Existing PL Client
Proceed to book LIC IPO shares using our EIPO Facility and using the UPI ID, confirm the payment on the UPI app, and block the amount for allotment.
Visit this link to apply: https://eipo.plindia.com/
b) New Demat Account
If you’re a new investor open your demat account for free with Prabhudas Lilladher to begin your investment journey.
Click https://instakyc.plindia.com/ to get started
Check out this video walkthrough to learn how to open a demat account at PL.
If you face any difficulties while opening an account online, you can leave us a missed call at 07968350270 and our agents will call you right back!
Alternatively, you can walk into any of our branches across India – Check out our locations at https://www.plindia.com/contact-us.aspx.
From some other city? No Issues! Just leave us a message at email@example.com and we shall ask our closest partner office out of our 1000 plus partner network to assist you!
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Each account fetches you a referral reward of Rs 350!
Visit https://www.plindia.com/direct-referral-agent/ to register as agent now!
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