Why the LIC IPO Is Trending: A Deep Dive into India’s Most Anticipated IPO

Is there anyone who has not been approached at some point of time in their life either at home, work, while with friends, or outside by an LIC agent or received a proposal to buy insurance from LIC? The sheer reach and influence of the Life Insurance Corporation (LIC) have made it a household name in India, synonymous with insurance.

LIC: The Grand Gateway to Insurance in India

Until 2000, LIC was the sole insurance provider in the country. This fact alone speaks volumes about its historical significance in the insurance sector. Today, LIC continues to dominate, with an impressive network of agents and extensive reach.

As of recent figures, LIC boasts:

A network of over 1.3 million agents, making it the largest network in India. A market capitalization of 4% of the NSE, solidifying its position as the largest asset manager in the country. A 75% share in the new policy issuance market in 2021, with the issuance of 21 million policies.

Basic Facts About LIC at a Glance

Going beyond its network and success, here are some key statistics and facts about LIC:

Global Ranking: 5th largest in terms of gross written premium (GWP), 10th largest in terms of total assets. NBP (New Business Profit): 1.96 times, almost double that of the total private sector insurance sector. Brand Value: As per the WPP Kantar report, it is the second most valuable brand among 75 selected brands in reports for 2018, 2019, and 2020.

LIC offers a diverse portfolio, including 32 different products, each catering to various life cycle needs:

Start of savings Marriage Career Family Retirement

At the point of sales and distribution, LIC is unparalleled. It has a vast network of agents, alongside bancassurance and alternative channels like online portals, micro insurance agents, and point-of-sale insurance.

Digital Presence and Intermediary Tools

LIC is not just about traditional sales. Its digital presence is robust, with over 18.60 million registered users on its portal and 5.13 million on its mobile app. For intermediaries, it offers a sales app and a quick quote app, making it even more accessible to a wide audience.

The LIC IPO: A Record-Breaking Event

Its trending everywhere because it is the biggest IPO ever in the Indian market. The upcoming LIC IPO is set to break records in several ways:

LIC will set aside almost 22.14 million shares, or 10% of the total 221.37 million shares offered for sale. The worker’s quota will be increased by 1.58 million shares, adding 0.7% to the offer. Bids will be accepted in multiples of 15 equity shares.

The LIC IPO is drawing significant interest and attention, with analysts comparing it to the success of the Indian film KGF in the country’s entertainment industry. Just like KGF became a cultural phenomenon, the LIC IPO is anticipated to have a similar impact on the Indian financial markets.

Conclusion

The LIC IPO is a major event in India, not just for investors but for the insurance industry as a whole. With its wide reach, trusted brand, and diverse product portfolio, LIC is poised to make a significant impact in the financial markets. As the market waits breathlessly for details of the listing, the excitement around this IPO shows no signs of abating.