Wednesday, May 18, 2022

Tepid Listing of LIC IPO; Stock Settles At Rs 875.45 On BSE On Debut


Life Insurance Corporation of India (LIC) ("Company"), India's largest life insurer with a market share of 64.1 percent in terms of premiums, listed on the NSE at Rs 872 at 8.11% discount over its issue price. The scrip got listed at BSE at Rs 867.20 per share, 8.62% per cent discount over its issue price of Rs 949. The shares of the company at day end closed at Rs 875.45 per share on BSE and at Rs 875.25 per share on NSE. The initial public offering was offered at a lower price band of Rs 902 per share and higher price band of Rs 949 per equity share.

As per BSE, the total quantity traded stood at 27.55 lakh shares with a delivery quantity percentage of 47.05%. Total Quantity traded at NSE stood at 487.92 lakh shares with a delivery quantity percentage of 39.18%. Total Turnover (BSE+NSE) on Day 1 stood at Rs 4591.10 crore.

The Market Capitalization of the Company post today’s closing price stood at Rs. 5.53 trillion as per BSE and Rs. 5.52 trillion as per NSE.

The initial share sale with a face value of Rs 10 per equity share, is a comprehensive offer-for-sale (OFS) of up to 221374920 equity shares by the President of India through the Ministry of Finance, Government of India ("Selling shareholders") and the issue was closed on 9th May 2022. The portion reserved for eligible policy holders was subscribed 6.12 times, reservation for eligible employees was subscribed 4.40 times, Retail Category was subscribed 1.99 times; the non-institutional category witnessed subscription of 2.91 times and qualified institutional buyers category saw subscription of 2.83 times. Overall the issue was subscribed 2.95 times.

Kotak Mahindra Capital Company Limited, Axis Capital Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, J.P. Morgan India Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited and SBI Capital Markets Limited are the book running lead managers to the issue.

Company Information

LIC was formed by merging and nationalizing 245 private life insurance companies in India on September 1, 1956, with an initial capital of ?50.00 million. LIC is the fifth largest life insurer globally by GWP (comparing LIC’s life insurance premium for Fiscal 2021 to its global peers’ life insurance premium for 2020) (source: the CRISIL Report) and the largest asset manager in the country as at December 31, 2021 (source: the CRISIL Report), with an established track record of financial performance and profitable growth. As at December 31, 2021, the Corporation covered 91% of all districts in India and had the largest individual agency network among life insurance entities in India, comprising approximately 1.33 million individual agents.

LIC’s individual product portfolio in India comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits. LIC’s group product portfolio in India comprises 11 group products. LIC’s omni-channel distribution platform for individual products currently comprises (i) individual agents, (ii) bancassurance partners, (iii) alternate channels (corporate agents, brokers and insurance marketing firms), (iv) digital sales (through a portal on our Corporation’s website), (v) Micro Insurance agents and (vi) Point of Sales Persons – Life Insurance.

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