Awaiting the Biggest IPO of the Year? Here's Everything You Need To Know About the LIC IPO
The LIC IPO is supposed to be announced anytime now. As per the latest LIC IPO news, LIC is expected to announce the date for IPO very soon, with everybody eagerly waiting for more details on the LIC IPO price.
About LIC
LIC stands for Life Insurance Corporation and was founded in 1956. The Indian Parliament passed the Life Insurance Corporation Act on 19th June 1956, and the Life Insurance Corporation was created on 1st September 1956. At the time of creation, LIC had 5 zonal offices, 33 divisional offices, and 212 branch offices. LIC has grown by leaps and bounds over the years. Today, it has 2048 computerized branch offices, 8 zonal offices, and 113 divisional offices, with all branches connected via a Metro Area Network. It has offices in several important cities in India, for instance, New Delhi, Kolkata, Chennai, Bengaluru, Ahmedabad, Hyderabad, Pune, Gurgaon, Cochin, etc., with headquarters in Mumbai.
Strengths of LIC:
Large LIC Agents Network: Huge number of Individual LIC Agents - over 12 Lakhs as of 31st March 2020,
Source: Operations Of LIC
This is an impressive achievement considering the total number of Insurance Agents of private insurers in India is around 11 Lakhs.
Also, LIC has over 1 Lakh employees.
Great Reach in India: The presence of LIC is in almost every nook and corner of India and is a very stable and well-respected Life Insurer.
Insurance Plans: LIC offers several types of Insurance Plans like Pension Plans, Unit Linked Plans, Micro Insurance Plans, Health Plans, etc., along with Group Schemes. These offer flexibility in choosing a plan suitable to the specific needs of each person or family.
Huge Market Share: As per the Annual report of LIC 2020-21, the market share of LIC stood at 66.18% in Total First Year Premium and 74.58% in a number of new policies as of 31st March 2021.
Source: LIC Annual Report 2021
Threats for LIC:
The Insurance business has grown with several Private players in the market offering different insurance plans. Being a large Public Sector Unit organization, it is a question mark if LIC can keep up with the fast-paced world and if there would be greater autonomy from the Indian Government after the listing.
