The Initial Public Offering (IPO) of Life Insurance Corporation of India (LIC) is set to be one of the most eagerly anticipated financial events of 2022. Scheduled to launch on 4 May 2022, the LIC IPO is expected to be the largest in India's history and potentially one of the biggest globally in the insurance sector.
The LIC IPO will feature the usual investor categories: retail individual investors, non-institutional investors, qualified institutional buyers, and anchor investors. However, it will also introduce a unique category for LIC policyholders. That means anyone with an LIC policy can apply for shares under a special allotment category.
With LIC commanding a substantial two-thirds of the Indian insurance market, chances are high that you might already hold a LIC policy. If so, it is worth exploring how to invest in LIC’s IPO in 2022. Beyond the appeal of preferential share allotment, the sheer scale of LIC’s IPO is noteworthy.
LIC operates over 3,000 offices nationwide and manages nearly 30 crore policies. The corporation is valued between ₹8-10 trillion, with even a 5% stake sale making it India’s largest IPO. Holding assets worth $511 billion, LIC employs over 100,000 staff and has 1.2 million agents. The corporation has a history of supporting struggling state-owned enterprises.
Investor interest in IPOs has been robust, with over $10 billion raised in India through IPOs up to October 2021. The debut of a major brand like LIC is expected to generate even greater excitement.
Here's the information about the LIC IPO:
If you want to apply for the IPO, you will need a Demat Account. You can open a Demat Account through a depository participant (DP). You can find a list of registered DPs on the NSDL and CDSL websites. To open a Demat Account, you will need to provide:
Consider opening an HDFC Bank DigiDemat Account for a seamless and convenient process. The account can be opened online with:
There are no account opening charges or paperwork required. With an HDFC Bank DigiDemat Account, you can apply for the IPO and trade with minimal brokerage charges. Linking your DigiDemat Account to your HDFC Bank Account provides a smooth investment experience in the stock market, as well as in currency and commodity trading. Click here to get started with your Demat Account.
To apply for the LIC IPO:
The LIC IPO is expected to be a significant event in the financial calendar this year. Keep an eye on updates leading up to the IPO offering. LIC policyholders should ensure their policy, PAN, and KYC details are updated and have their HDFC DigiDemat Account ready.
With strong interest from investors and LIC customers alike, being prepared with this information will help you navigate the IPO process smoothly when the time comes.
*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.