LIC -IPO Presentation

1. Government to
launch LIC (IPO)
Deepak Sharma Vishant Kumar
Deepak and Vishant will be
representative for this session.
MIB(2020-2022)

2. News
Article

3. LIC (Life Insurance Corporation)
Indian government-owned insurance and investment corporation
Founded - 1 September 1956
Chairman - M.R Kumar
Headquarters - Mumbai, India
Employes - 114000, Agents - 1200000
Branches - 8 zonal,113 divisional, 2,048 branches, and 1408 satellite offices
Subsidiaries - LIC Housing Finance
LIC International ltd
LIC Mutual Funds
योग ेमम् वहा यहम (yogakshemam vahamyaham)

4. What Is IPO / Why IPO ?
IPO stands for Initial Public Offering.
It transforms a privately-held company into a public company.
It is a process of offering shares of a company to the public in a new stock issuance.
To raising capital
Improves credibility of company
Helps assess companies market worth
Gives greater market visibility

5. Facts and Figures
of News
The Finance Minister had announced that LIC (IPO) will launch soon.
DIPAM secretary had confirmed that LIC (IPO) will launch after September 2021.
The Government plans to raise around 90000 crores by selling 6-10% stakes of LIC.
The expected valuation is around 12.85-15 lakh crores.
The government wants to raise around 2.1 lakh crores overall from the disinvestment
of equity.

6. Company Analysis
Total Assets - 31lakh crores.
LIC has a strong brand image.
More than 50% of the market share.
According to Economic Times Brand Equity Survey of 2018 LIC was
declared as the most trusted Insurance provider.
India's largest insurance provider.
A company with great potential.

7. Is LIC in "Loss" ?
Total Gross Income
A Big "NO".
Total Gross Income grew from
560000 crores to 615000
crores.
A dividend of 2700 crore to
govt.
Sold over 2.19 crores policies
in FY20.

8. Competitor Overview
Market Share
FY 2014 - FY2018 FY 2019
Tough competition to LIC.
Monopoly till 2000.

9. Impact On
Existing
Customer
&
Insurance
sector
LIC chairman M.R Kumar said that it will not
impact the customer and employees in any way.
Finance Minister had already assured that LIC
policies will retain their sovereign guarantee
Indirect benefits for the policyholder.
The insurance market will attract more foreign
interest.
It will encourage some other private firms to list
some of their shares in the stock market.
The competition will definitely increase.
10% reservation in IPO for existing policyholder

10. Rectify the image of
privatization.
Rules and Regulation
of SEBI.
Exact Valuation of the
company.
Listed in the stock
exchange.
Launching an IPO not a
cup of tea.
CHALLENGES!

11. Learnings ?

12. References
https://economictimes.indiatimes.com/markets/ipos/fpos/big-bang-lic-ipo-to-lend-sparkle-to-markets
this-diwali/articleshow/80690170.cms
https://groww.in/blog/why-does-a-company-decide-to-go-public/
https://www.zeebiz.com/market-news/news-lic-ipo-news-confirmed-life-insurance-corporation-
of-india-public-offer-not-coming-before-this-date-check-valuation-other-details-inside-148395
https://licindia.in
https://www.thehindubusinessline.com/money-and-banking/lic-ipo-will-not-impact-customers-
employees-in-any-way-chairman/article30763386.ece
https://www.financialexpress.com/money/insurance/lic-sells-over-2-19-crore-policies-in-fy20-
highest-in-six-years/1942361/
https://www.hindustantimes.com/business-news/lic-s-new-business-premium-reports-25-growth-for-
fy-2020/story-tcCXflFKXauoFutgAoCBAM.html

13. O P E N F O R Q U E S T I O N S A N D A N S W E R S
THANK YOU