Life Insurance Corporation of India or LIC filed its first draft red herring prospectus on February 13, 2022. It is all set to launch an Initial Public Offering, where the government sells its 5% stake or 316 million shares of the company to the public. It has a complex distribution network and cross-holding across the public and private sectors.The first and second pages of the LIC IPO issueinclude the current investors’ selling their stake and how many shares they propose to sell in the IPO.
Some reservations in the IPO are for the employees and policyholders. It also mentions the risks related to the offer and participating in the IPO. In the end, you see the lead managers and the registrar of the issue. Here are the other details:
Pages 1-22
When you read the Herring prospectus before the LIC IPO date 2022, you understand the risk factors of participating in the public issue, like causes and events harming its business and its ability to remain. This part is essential for investors to understand the risk that the company deals with and the industry in which it operates.
Pages 67-105
You get a brief introduction to the company, its industry, a summary of the financial statements, and the latest objectives of the issue. You also learn the capital structure and general information, including the registered office address. The LIC IPO price and lot sizes are Rs. 902 – 949 per share and 15 shares, respectively.
Pages 106-299
You get all the information you need about LIC, like the company’s history, some corporate matters, management team, board of directors, and any group companies or subsidiaries of LIC besides its dividend policy.
Pages 300-503
These pages include detailed tables of the most critical statements, such as the profit and loss balance sheet, cash flow, management discussion of financial statements, and annual reports of listed entities of the company.
Pages 504-546
As an investor, you learn about the different approvals government has granted the company for running the business and the regulated disclosures it needs to make under the SEBI guidelines.
Pages 547 and 548
Before investing in the LIC IPO, investors should know about the information related to the offer, terms, application process, and guidelines on foreign ownership restrictions in the Indian market.The IPO opens on May 4 and closes on May 9, 2022.
Pages 579-581
Such pages have a brief introduction to some provisions of the LIC Act that the company has made for the public, which is important to learn.
Pages 582-630
Investors here learn about the net worth of the company and the value of a new business. The auditor also suggests you read the report with the remaining prospectus.
Pages 631-649
It includes information about different contracts LIC has already entered or is likely to enter.
Keywords: LIC IPO, LIC IPO date 2022, LIC IPO price
