The policy sales of Life Insurance Corporation of India (LIC) have come down and at the same time it has to pay more death claims. In such a situation, there is a financial burden on LIC. LIC IPO is coming soon. These figures are not good for him before the IPO.
- LIC IPO is the biggest IPO in the history of the country
- LIC's investment in equity is Rs 10 lakh crore
- Presently the Embedded Value of LIC is Rs 5.4 Lakh Crore
LIC IPO Update: Everyone is waiting for the country's biggest IPO (LIC IPO Date). Through this IPO, 31.6 crore shares i.e. 5% share will be sold (LIC IPO Price). This IPO will be completely OFS, new shares will not be issued in it. Retail investors will have up to 35% in this mega IPO. But even before the IPO came, LIC has suffered a major setback. According to the information, the Kovid-19 (COVID-19) epidemic has had a bad effect on LIC.
LIC got a big blow
LIC has informed that due to the Kovid-19 epidemic, there has been a decline in the total number of individual and group policies. Along with this, there has also been an increase in death insurance claims during the pandemic. Rs 17,128.84 crore, Rs 17,527.98 crore, Rs 23,926.89 crore and Rs 21,734.15 crore have also been paid for death insurance claims for the six months ended FY 2019, FY 2020, FY 2021 and September 30, 2021 respectively . That is, the financial burden on LIC has increased.
Policy sales also decreased
According to the documents given by LIC to SEBI, there has also been a decrease in the policy sales of LIC. The sale of individual and group policies declined by 16.76 percent from 7.5 crores in the financial year 2018-19 to 6.24 crores in the financial year 2019-20. At the same time, in the financial year 2020-21, it declined by 15.84 and this figure came to 5.25 crores. The company has said that due to the lockdown, sales of individual policies declined by 22.66 percent to 63.5 lakh in the fourth quarter of 2019-20, from 82.1 lakh in the same period a year ago. Not only this, its effect was also visible in the first quarters of 2020-21 and 2021-22. During this period, it decreased by 46.20 percent to 19.1 lakhs and then 34.93 percent to 23.1 lakhs respectively.
Country's biggest IPO
Presently the Embedded Value of LIC is Rs 5.4 Lakh Crore. At the same time, till this financial year i.e. FY21, the market share value in new business premium has been 66%. The market of LIC is very strong. LIC also has 13.5 lakh agents till FY21. Till FY21, the total policy of LIC has been 28.3 crores. Now let's talk about valuation, then embedded value is necessary for valuation. The total valuation will later be entered in the RHP. The ownership of LIC IPO and the entire capital will go to the government and not to the company.
Know who will get what and how much?
Reserve quota of employees in LIC IPO will be up to a maximum of 5%. At the same time, the reserve quota of LIC policy holders (LIC IPO Policy Registration) will be up to a maximum of 10%. Up to a maximum of 50% for QIBs and a maximum of 60% of the share of QIBs for anchor investors.
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