What Could Be LIC Share Price?

What could be LIC share Price? LIC is the biggest insurance company in India. It is a government undertaking venture started on 1st September 1956. In India, there are around 300 million people who trusted LIC for the life insurance policy. LIC is soon going public by launching its IPO. Once the IPO is launched, the market capitalization of LIC would be 15 lakh crores.

What could be LIC share Price?

LIC is planning to disinvest its 10% stake and launching its IPO on NSE and BSE soon. The government of India is planning to raise ₹ 1 lakh crore through this disinvestment. LIC IPO is the most eagerly awaited IPO in India. The price band of the IPO offer is still not decided.

LIC is India’s largest insurance company having 70% market share. The details of the LIC IPO is as below.

IssuerLife Insurance Corporation of India (LIC)
Issue Type100% Book Built Issue IPO
Issue PeriodIssue Opens: 2021
Price BrandRs.- per Equity Share (Expected)
Issue SizeRs.70000* Crores
Face ValueRs.10 per Equity Share
Lot SizeX Equity Shares and in multiples thereof
Maximum Bid amount for RetailRs. 2 Lakhs
QIB50% of the issue size
NIB15% of the issue size
Retail Individual Bidders35% of the issue size
Employee ReservationX Equity Shares (Rs. – Crs)
Employee DiscountRs.- per Equity Share
ListingNSE & BSE

LIC is the biggest financial institution in India. It could easily become the top listed company when the company will debut in the stock market by the year 2021 end. Due to its popularity and IPO size, it will rank number 1 in terms of valuation and market capitalization. It has the potential of beating the market leaders like Reliance, TCS, Infosys, etc.

Currently, the total AUM is around 33 lakh crore which is a rise of 10% on a YoY basis. It has a strong brand recall and trust of the people. This is enough for any company to become the market leader in terms of valuation.

LIC’s reported profits were Rs 23,621 crore from its equity investment during 2018-19, against Rs 25,646 crore during 2017-18. The insurer made a gross equity investment of Rs 68,621 crore during FY 2018-19 as per the report.

Various market analysts have provided a rough estimate on the valuation of LIC to be around 11 lakhs crores. The government will have to arrive at the actual value of LIC before they file DRHP.

The LIC share price can be determined based on the actual valuation and the competitor’s existing share price. The issue price is usually announced one week before the issue open date.

The IPO is likely to come in the third or the fourth quarter of the financial year 2021-22. Everyone is waiting for the LIC IPO. LIC is the profitable public enterprise governed by the Government of India.

LIC Key Facts and Numbers

  • Capital Deployed* (including Share Premium, if any) (₹ Crore) – ₹ 37789
  • No. of Branch Offices – 11311
  • No. of Agents (Individual) – 22,78,466
  • No. of Direct Employees – 2,93,262
  • Total Assets (₹ Crore) (incl. Equity) – ₹ 37,75,690 Cr.
  • Equity (at Market Value) – 663637
  • Number of policies – 176.08 lakhs
  • Death claim settlement ratio – 95.44% (year 2019-20)
  • Net profit for the year 2019-20 is 12887 Cr.

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