LIC IPO Review

LIC IPO Review, a boon or a bane? The LIC IPO is set to become one of the biggest IPOs to hit the Indian markets, as the largest insurance company in the country is set to file the draft red herring prospectus (DRHP) in a few days. The issue size is speculated to be around ₹60,000 crores to ₹100,000 crores.

Incorporated in 1956 by merging of 245 private insurers, LIC is the largest insurance company in India. The FDI which was earlier 26% in the insurance sector has now been increased to 74%. LIC was a monopoly firm covering the insurance sector till the 1990s after which many private players came into the picture.

LIC IPO REVIEW

As of 31st March 2021, LIC  holds more than 74.58% market share with 23 private insurers in the market competing with it. LIC has around 2,048 branches all over the country with 8 zonal offices present in Delhi, Chennai, Mumbai, Kolkata, Kanpur, Patna, Bhopal, and Hyderabad. The state-owned insurer also has 113 Divisional offices, 1,178 mini offices, and 1,526 Satellite Offices.

LIC IPO Review Details

With over 1.14 lakhs employees, the LIC agent’s network is enormously huge. As of 31st March 2021, the company is said to have approximately 13.53 lakh individual LIC agents, as compared to the 11.01 lakh agents for a total of 20 private life insurers. LIC has diversified its business and has its hands in LIC Housing Finance, LIC Mutual Fund, LIC Pension Fund, LIC Cards Services. LIC acquired IDBI bank in 2019. The insurance company directly operates its foreign branches present in Fiji, Mauritius, and United Kingdom.

LIC being PSU (public sector unit), faces a lot of rules and restrictions in its operations. The internal policies need to be amended according to the fiscal and monetary policy changes of the country. It has competitions from many private players currently.

Coming up with an IPO and termed as the biggest IPO, LIC has offered a maximum of up to 10% quota of the offered size for its policyholders too. So taking the positives and negatives into consideration, LIC IPO Review is a thumbs up for the ones waiting for it considering a short to mid to long term. The price band and valuations will be revealed along with the DRHP which is to be filed soon after which a detailed review and top brokerages review will be updated soon.

LIC IPO Ratings

Along with the LIC IPO Review, the ratings are important too for the investors to know. Here is a list of ratings provided for the upcoming issue by different financial institutions, brokers, and SEBI registered analysts.

Criteria Ratings(Out of 10)
Financial Statements 8
Company Background 9
Competitive Edge 9
Industry Ranking 10
Company Reputation 9
Retail Ratings 8.5
Popularity Index 9
Overall Rating 9
Stars Rating *****

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