About the Company:
Life Insurance Corporation of India Ltd has been providing life insurance in India for more than 65 years and is the largest life insurer in India,
Company has 64.1% market share in terms of premiums (or GWP : Gross written premium), a 66.2% market share in terms of New Business Premium (or NBP), a 74.6% market share in terms of number of individual policies issued, a 81.1% market share in terms of number of group policies issued for Fiscal 2021.
Company had the highest gap in market share by life insurance GWP relative to the second-largest life insurer in India as compared to the market leaders in the top seven markets globally.
Corporation is ranked fifth globally by life insurance GWP and 10th globally in terms of total assets (comparing our Corporation’s assets as at March 31, 2021 with other life insurers’ assets as at December 31, 2020).
Corporation is the largest asset manager in India as at September 30, 2021, with AUM (comprising policyholders’ investment, shareholders’ investment and assets held to cover linked liabilities) of Rs.39 Lakh crores on a standalone basis,
which was (i) more than 3.3 times the total AUM of all private life insurers in India.
(ii) approximately 16.2 times more than the AUM of the second-largest player in the Indian life insurance industry in terms of AUM.
(iii) more than 1.1 times the entire Indian mutual fund industry’s AUM and
(iv) 18.5% of India’s annualised GDP for Fiscal 2022.
Company’s Investment in Listed Equity:
As on September 30, 2021, Corporation’s investments in listed equity represented around 4% of the total market capitalisation of NSE as at that date.
Largest individual agent network.
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 our Corporation’s NBP for our individual products in India, respectively.
Corporation has the largest individual agent network among life insurance entities in India, comprising approximately 1.35 million individual agents as at March 31, 2021, which was 7.2 times the number of individual agents of the second largest life insurer.
Corporations branch Network:
As at September 30, 2021, Corporation had 2,048 branch offices and 1,554 satellite offices in India, covering 91% of all districts in India.
Corporations business from Outside India:
In addition to Corporation’s life insurance operations in India, Corporation has one branch in each of Fiji, Mauritius and the United Kingdom and subsidiaries in Bahrain (with operations in Qatar, Kuwait, Oman and the United Arab Emirates), Bangladesh, Nepal, Singapore and Sri Lanka in the life insurance industry.
For Fiscal 2019, Fiscal 2020, Fiscal 2021 and the six months ended September 30, 2021, on a consolidated basis, corporations premium from outside India represented 0.93%, 0.99%, 0.73% and 0.77%, respectively, of our total premium.
Management Team:
- Mr. Mangalam Ramasubramanian Kumar (Designation: Whole-time Chairperson)
- Mr. Raj Kumar (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs.21,000 cr)
- Each of the Selling Shareholders will be entitled to the proceeds of the Offer for Sale. Company will not receive any proceeds from the Offer for Sale.
Positives for the Company:
• Fifth largest life insurer globally by GWP and the largest player in the fast growing and underpenetrated Indian life insurance sector.
• Trusted brand and a customer-centric business model.
• Cross-cyclical product mix that caters to diverse consumer needs and an individual product portfolio that is dominated by participating life insurance policies.
• Presence across India through an omni-channel distribution network with an unparalleled agency force.
• Harnessing technology capabilities to support customer connect and drive operating efficiencies.
• Largest asset manager in India with an established track record of financial performance and profitable growth.
• Robust risk management framework; and
• Highly experienced and qualified management team, distinguished Board and strong corporate governance framework.
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 4th May 2022 |
| Issue Closes on:. | 9th May 2022 |
| Issue Price | Rs.902 – 949 |
| Retail/ Employee Discount | Rs.45 (after discount Rs.904) |
| Policy Holder Discount | Rs.60 (after discount Rs.889) |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 15 shares |
| Minimum Investment | (Qib: Rs.14,235) (Retail: Rs.13,560) (Policy holder Rs.13,335) |
| Issue Constitutes | 3.5% |
| Issue Size | Rs.21000 cr ($2.75 billion) |
| Market Cap | Rs.6,00,000 cr ($79 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 22,13,74,920 |
| Equity Shares Prior to the Issue | 632,49,97,701 |
| Equity Shares after the Issue | 632,49,97,701 |
Also Read : List of Upcoming IPO’s in India.
Also Read : List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 12th May 2022 |
| Initiation of Refunds | on or Before 13th May 2022 |
| Credit of Equity Shares: | on or Before 16th May 2022 |
| Listing Date: | on or Before 17th May 2022 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 4.70 | 201.91 | 45.65% | 10.30 |
| Check IPO Allotment Status: |
|---|
KfinTech Website : http://kfintech/IPO/Allotment_StatusBSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| Life Insurance Corporation of India Yogakshema, Jeevan Bima Marg Nariman Point, Mumbai 400 021 Maharashtra, India. Telephone: +91 22 2202 2079 Email: Investors@licindia.com Website: www.licindia.in |
| IPO Registrar Info: |
|---|
| KFin Technologies Private Limited Selenium, Tower B, Plot No- 31 and 32 Gachibowli, Financial District Nanakramguda, Serilingampally Hyderabad 500 032 Telangana, India Tel: +91 40 6716 2222 E-mail: lic.ipo@kfintech.com Website: www.kfintech.com |
