LIC IPO Day 3: Total subscription at 1.38 times, retail portion booked 1.23 times, NII 75%, QIB 56%, policyholders 4.01 times, employees 3.05 times

LIC IPO Day 3: Total subscription at 1.38 times

The initial public offering of country's largest life insurance company Life Insurance Corporation of India has subscribed 1.38 times, receiving bids for 22.34 crore equity shares against offer size of 16.2 crore equity shares on May 6, the third day of bidding.

The portion set aside for policyholders portion has been subscribed 4.01 times, employees 3.06 times, and retail investors subscribed 1.23 times, while QIBs bid for 56 percent shares of their allotted quota and NII lapped up 75 percent of their portion.

LIC’s plan includes

Increasing market share of bancassurance channel by tying up with more bank partners and improving their productivity by providing them with digital solutions for on-boarding customers for their products.

Increasing direct sales of their individual products on their website by increasing marketing of their corporation’s website and adding more products that are available for purchase on their website.

Improving the share of non-participating products by increasing the focus on sales of Ulip, protection products, pension/annuity products and health insurance.

Recruiting more millennial agents in light of changing demographic dynamics

Increasing upselling and cross-selling to individual customers and beneficiaries of group products to cover their varied financial needs

Increasing the average ticket size of products

Increasing productivity of intermediaries by furthering competency-building initiatives

Increasing their focus on group protection plans (Source: ICICI Direct)

LIC IPO Day 3: Total subscription at 1.37 times

The initial public offering of country's largest life insurance company Life Insurance Corporation of India has subscribed 1.37 times, receiving bids for 22.16 crore equity shares against offer size of 16.2 crore equity shares.

The portion set aside for policyholders portion has been subscribed 4 times, employees 3.05 times, and retail investors subscribed 1.22 times, while QIBs bid for 56 percent shares of their allotted quota and NII lapped up 73 percent of their portion

LIC’s AUM surged at 12 percent CAGR over FY19-H1FY22 to Rs 39.6 trillion

LIC IPO Day 3: Total subscription at 1.36 times

The initial public offering of country's largest life insurance company Life Insurance Corporation of India has subscribed 1.36 times, receiving bids for 22.03 crore equity shares against offer size of 16.2 crore equity shares.

The portion set aside for policyholders portion has been subscribed 3.96 times, employees 3.04 times, and retail investors subscribed 1.22 times, while QIBs bid for 56 percent shares of their allotted quota and NII lapped up 73 percent of their portion.

Operating expense has been declining for industry, with LIC having the lowest cost ratios, says ICICI Direct

LIC’s expense ratio is considerably lower than that of private players on account of it being a mature business. For private players in the industry as well, the operating costs are coming down on account of higher dependence on technology and fintech tie-ups for multiple operations.

LIC IPO Day 3: Total subscription at 1.35 times

The initial public offering of country's largest life insurance company Life Insurance Corporation of India has subscribed 1.35 times, receiving bids for 21.81 crore equity shares against offer size of 16.2 crore equity shares.

The portion set aside for policyholders portion has been subscribed 3.93 times, employees 3.01 times, and retail investors subscribed 1.21 times, while QIBs bid for 55 percent shares of their allotted quota and NII lapped up 71 percent of their portion.

Adverse persistency metrics can have a material adverse effect on LIC, says Ventura

The probability of higher surrenders at the end of the lock-in period for ULIPs has been included in the actuarial assumptions used for the calculation of future projected profits. However, LIC may encounter higher than expected surrenders or experience concentrated surrenders at times other than at the end of such a lock-in period, which can lead to pay-outs exceeding cash flows. This can result in disposal of investment assets, possibly at unfavorable prices, in order to make the significant amount of surrender payments.

Check These Key Ratios While Investing in LIC IPO

Pure protection rates unchanged for LIC since March 2021

Channel checks suggest LIC has not raised rates for its pure protection Tech Term plan, says Elara.

LIC IPO Day 3: Total subscription at 1.34 times

The initial public offering of country's largest life insurance company Life Insurance Corporation of India has subscribed 1.34 times, receiving bids for 21.65 crore equity shares against offer size of 16.2 crore equity shares.

The portion set aside for policyholders portion has been subscribed 3.9 times, employees 2.98 times, and retail investors subscribed 1.20 times, while QIBs bid for 55 percent shares of their allotted quota and NII lapped up 70 percent of their portion.

LIC Maintains Dominant Position in Group Insurance with 80% Market Share