July 6, 2022

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What Will Be the LIC IPO Price for the Year 2022?

The LIC IPO Price for the Year 2022?

The soon launching IPO of LIC is currently the talk of the show. The biggest ever Indian IPO has been planned for a few years now. It was first proposed in 2020’s budget speech. The largest life insurance company of India has turned the dream into reality when the Government of India  approved the proposal in July 2021’s cabinet meeting. Life Insurance Corporation of India has the largest portfolio of life insurance companies in the world and has a diverse collection of companies.

To be able to effectively manage the portfolio, LIC is planning to sell 5 percent of its shares in the fiscal year 2022-23. The firm is planning to increase its stake in the life insurance company LIC to 80 percent after raising Rs 10,000 crore through the initial public offer. The offer would be led by Goldman Sachs and the government would sell 5 percent of its share in the company.

Launch of LIC IPO

This is the first time since 1994 that LIC is doing an IPO. The stock market is abuzz with the fact that LIC is going to launch an IPO for the fiscal year from 11 March 2022. The company’s initial public offer (IPO) LIC IPO price for fiscal year 2022, as per the plan envisaged here, is at Rs.1,000 per equity share. LIC will start the initial public offer on 11 March 2022. The share listing will be on 14 March 2022.

What is the Share Price of LIC IPO 2022?

The reports mention the chances of delay in the launch of the LIC IPO. No doubt the issuers must be working on the launch deadlines. The prices of the shares for the IPO are in between Rs 2,000 to 2,100 each. The LIC IPO will amaze the market with its benefits and several others may face losses because of it. The firm’s IPO will not provide any fresh shares by LIC (Life Insurance Corporation). It will be an OFS (offer for sale) by the Indian Government. The government of India currently has 100 percent stake and around 632.49 LIC shares. LIC share’s face value is 10 rupees a piece.

Points to Remember While Bidding LIC IPO

This is the first time that LIC is going to do an IPO. This is the government’s policy of selling stakes in a company such as LIC through a stock exchange. Many of the Indian and foreign investors have already pulled up their socks to bid for the IPO. If you are also interested in the LIC IPO, here we will tell you some points to remember which will help you while bidding for the IPO.

  • The most important thing to buy equity shares in the IPO is to have a Demat account to apply for.
  • LIC IPO has 10 percent reservations for their policyholders. The holders then will not be able to bid for the IPO from their Demat accounts or from the relatives’ accounts. Though if you are bidding under “Policyholder Reservation Portion” then you can bid through the UPI system and the ASBA (Applications Supported by Blocked Amount.
  • The NRIs can apply for the IPO but only if they are the policy holder. They cannot bid in a policyholder section. They need to apply in the retail investor category.
  • No limitation like the lock in equity shares will be there. The investor can sell it immediately if they want to.

LIC IPO is a Record Breaker

As discussed earlier, The public offering will be the biggest Indian IPO and will set a new benchmark in stock market’s history. The government is looking forward to raising more than One lakh crore rupees from an IPO. The raised amount is 5 times more than that of Paytm. Paytm is the current largest Indian IPO which was issued in November 2021.

Which Indian IPOs Created History?

The IPOs that have created history in the Indian stock market are:

Paytm

Paytm launched its initial public offering (IPO) in the stock market today, an action that created history as it is the first Indian mobile wallet company to do this. Paytm, which had raised $1.5 billion in its last round of funding in April 2019, plans to raise $1.5 billion in its IPO on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This will make it the first Indian tech company to go public.

Zomato

The IPO of the online food delivery platform is one of the most sought after amongst the new-age businesses that got listed this year. The company made Rs 9,375 crore through the IPO. The biggest investors in the company include Tiger Global, BlackRock, Temasek Holdings, Amazon, Naspers, Microsoft, eBay and Google. The market valuation of the firm crossed Rs.1 lakh crore.

Nykaa

Nykaa’s initial public offering has shown the Indian stock market a new high and at the same time has seen a huge decline in the BSE Sensex within a few days of its IPO. The stock had touched a high price of Rs. 496.20 on the BSE exchange. The company raised Rs 5,352 crores through its IPO and the issue got subscribed 81.78 times.