LIC, the crown jewel of India, is all set to become the biggest IPO's to date in Indian history. Launched in 1956, the Life Insurance Corporation of India was set up by merging 245 insurance companies. Until the 1990s, the LIC had a monopoly in the life insurance area, covering mortality, illnesses, and other saving products.
Currently, there are around 2,048 LIC branches & 8 zonal offices in India. These zonal offices are located in metropolitan cities, namely Delhi, Mumbai, Chennai, Kolkata, Kanpur, Patna, Hyderabad, and Bhopal. In addition, the company has 113 divisional offices, 1,178 small offices, and 1,156 satellite offices spread across India.
Since the announcement of Union Budget 2020-21, LIC has made every attempt to improvise its asset quality ahead of the IPO. As a result, on the records, the gross NPA (Non-Performing Assets) percentage has declined from 8.17% in FY 2020 to 7.78% in FY 2021. Thus, creating a massive impact to improve their financial statements and attract investors to take the stakes!
Strength of LIC
- - The networking of LIC agents in India is enormous. As per the sources, the number of LIC individual agents were 13.53 lakhs as of March 31st, 2021.
- - The LIC offers a wide range of life insurance plans, endowment plans, money back policy plans, whole life plans, term insurance, and insurance riders.
- - As per LIC's 2019-20 annual reports, LIC has a market share of 69% in the life insurance space.
- - Apart from life insurance, LIC has versatile business models, namely LIC Housing Finance, LIC Mutual Fund, LIC Pension Funds. In 2019, LIC acquired IDBI Bank.
- - LIC directly operates through three banks in foreign soils, namely:
- Fiji (Suva & Lautoka)
- Mauritius (Port Louis)
- United Kingdom (Wembley)
- Between 2019 & 2021, LIC ranked the sixth position in terms of total assets holdings, with INR 522 lakhs crores clipping at 8% annually. In the first half of FY 2021-22, LIC reported a profit after tax of INR 1,437 crores.
- LIC has the prevalence of the life insurance share market in India. The Indian government hopes to raise INR 12 lakh to INR 15 lakh crores from selling 10% stakes of LIC. With its IPO, the central government expects to bridge the deficit gap this fiscal year.
Final Thoughts
LIC IPO has ignited profiting sparks in the eye of every investor. In addition, the company has decided to give special treatment to existing LIC policyholders. If one holds a LIC policy, that person can get a particular preference over those not holding. All one needs is to update their pan card details in the LIC portal.
Connect with us and avail the benefits of this LIC IPO now. WealthRhino will help you to carry out your investment process very smoothly. Click on the link to fill in the details or contact us directly. Our advisor will assist you instantly.
