₹ 235 cr" data-reg = "Ahead of IPO, LIC reveals Q3 results; profit rises to ₹ 235 cr">Ahead of IPO, LIC reveals Q3 results; profit rises to ₹ 235 cr File Photo: A logo of Life Insurance Corporation of India (LIC) is seen in Delhi (Reuters) Similarly, net profit for the nine months period ended December surged to ₹ 1,643 crore from ₹ 7 crore a year ago. The sharp jump in LIC profit is largely due to the change in the surplus distribution model. The LIC Act has been amended to bring its surplus distribution model at par with private life insurers. Before the amendment, the LIC had a single 'Life Fund'. Now it has been segregated into two. One is known as participating policyholders' fund,...
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Insurance behemoth Life Insurance Corporation of India (LIC) on Thursday said it will take legal action against unscrupulous entities making unauthorised use of its logo on social media platforms to attract customers. In its caution notice, LIC has also asked the public not to fall prey to proposals of such entities which are misusing its logo on social media platforms like Twitter, Facebook, Instagram and YouTube and other social media. "It has also come to our notice that certain unscrupulous service providers and agents have created websites and Apps whereby they are attempting to provide various services such as 'Insurance and Insurance Advisory Services' to customers using our...
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Is it worth investing in LIC (Life Insurance Corporation of India) IPO? Life Insurance Corporation of India incorporated on September 1, 1956, under the LIC Act by merging and nationalizing 245 private life insurance companies in India, is the largest life insurer in India, with a 61.6% market share in terms of premiums, 61.4% market share in terms of New Business Premium, 71.8% market share in terms of the number of individual policies issued, an 88.8% market share in terms of the number of group policies issued for Fiscal 2021. LIC is the largest asset manager in India as of December 31, 2021, with an AUM of Rs. 40.1 trillion, on a standalone basis which is 1.1 times the entire Indian...
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The Congress on Tuesday raised questions about the closely watched stock market listing of Life Insurance Corporation (LIC), by the government, saying that shares of India's biggest insurer had been "significantly undervalued". "Why was the LIC valuation of Rs 12-14 lakh crore in February 2022 reduced to Rs 6 lakh crore in just two months? While filing the prospectus in February 2022 for this mega IPO (Initial Public Offering), LIC disinvestment was aimed at 2.5 times the embedded value (EV), but now the valuation of the IPO is towards 1.1 times its embedded value. Comparably, HDFC Life Insurance is trading at 3.9 times EV, and SBI Life and ICICI Prudential Life trade at 3.2 times and 2.5...
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LIC shares plunge to lowest level since listing A security guard walks past logos of Life Insurance Corporation of India (LIC) and Bombay Stock Exchange (BSE) inside the BSE building in Mumbai, India. file photo (REUTERS) Earlier this week on Monday, the state-run insurance behemoth reported lower profit for the fourth quarter ending March 2022. LIC share price has declined over 3% on the last five trading sessions as compared to 0.8% rise in benchmark Sensex. In its first earnings release post shares listing, LIC posted a 17% decline in consolidated net profit to ₹ 2,409 crore for Q4 from ₹ 2,917 crore in the same quarter a year ago. The total income of the insurer increased to ₹ 2,12,230...
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LIC share price at new all-time low, mcap falls below Rs 5 lakh crore; should buy, sell or hold? LIC (Life Insurance Corporation of India) share price hit a fresh all-time low of Rs 785 apiece on BSE on Monday, taking the total market capitalisation below Rs 5 lakh crore. The LIC stock price has lost 10.23 per cent since listing on 17 May 2022. So far, the stock has failed to even touch the IPO price of Rs 949. With today’s low, the stock price has plunged 17.3 per cent from the issue price. “LIC is purely under price discovery process. It would be best for investors to first wait for any basic confirmation of any bottom before taking any investment calls,” Milan Vaishnav...
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Sebi has approved the draft prospectus for sale of a 5% stake by the govt for an estimated ₹63,000 cr The government has amended rules of the Foreign Exchange Management Act (FEMA), paving the way for up to 20 per cent foreign direct investment in the insurance behemoth LIC. The government is planning to dilute its stake in LIC through the the Initial Public Offering (IPO). LIC in February had filed the Draft Red Herring Prospectus (DRHP) before the markets regulator Sebi for the IPO. Last month, Sebi gave approval to the draft papers and the insurer is in the process of filing a request for proposal with changes. Following the Cabinet approval, the Department for Promotion of Industry and...
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LIC’s record IPO set to be fully sold as valuation drives demand An exterior view of Life Insurance Corporation of India's (LIC) headquarters, in Mumbai. (Reuters File Photo) A 210 billion rupee ($2.7 billion) record share sale by state-run Life Insurance Corp. is poised to be fully taken up by investors four days before the offering closes as a low valuation and deep retail discounts drive demand. By Thursday, the second day of the offering, investors had already put in orders for 79% of the shares for sales in India’s biggest IPO. Around 35% of the total issue is reserved for retail investors and 72% of that tranche was sold at 11:55am in Mumbai, stock exchange data showed. Demand from...
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The Narendra Modi government intends to come out with the initial public offering (IPO) of the life insurer before the close of the current fiscal on March 31. The draft document, which must be approved by the market regulator, does not mention the timing of the issue or the pricing. The IPO will see the Centre offering 31.6 crore shares, or 5 per cent of the insurer’s equity. Since the issue is entirely an offer for sale, all the proceeds will go directly to the government. In the Union budget presented earlier this month, the government had drastically scaled back its estimation of proceeds from divestment from Rs 1.79 lakh crore in the previous year’s budget estimate to Rs 78,000 crore...
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Life Insurance Corporation of India (LIC) has been providing life insurance in India for more than 65 years. It is the largest life insurer in India with a 61.6% market share in terms of premiums (or GWP), a 61.4% market share in terms of New Business Premium (NBP), a a 71.8% market share in terms of number of individual policies issued, a 88% market share in terms of number of group policies issued for the nine months ended December 31, 2021. The corporation had the highest gap in market share by life insurance Gross Written Premium (GWP) relative to the second-largest life insurer in India as compared to the market leaders in the top seven markets globally (in 2020 for the other players...
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