Price Band of ₹ 902 – ₹ 949 per equity share bearing face value of ₹ 10 each (“Equity Shares”).
Discount – ₹ 45 per Equity Share to Retail and Eligible Employee Category and ₹ 60 per Equity Share to Policyholder Category.
Bid/Offer Opening Date – Wednesday, 4 May, 2022 and Bid/Offer Closing Date – Monday, 9 May, 2022.
Minimum Bid Lot is 15 Equity Shares and in multiples of 15 Equity Shares thereafter.
The Floor Price is 90.2 times the face value of the Equity Share and the Cap Price is 94.9 times the face value of the Equity Share.
Risks to Investors: • For Fiscal 2019, Fiscal 2020, Fiscal 2021 and the nine months ended December 31, 2021, the Life Insurance Corporation of India (“Corporation”) had a market share of 66.4%, 66.2%, 64.1% and 61.6%, respectively, in terms of total premium in the Indian life insurance sector • The entire Net Proceeds will be paid to the President of India and the Corporation will not receive any proceeds of the Offer .
Agents procure most of individual new business premiums. If we are unable to retain and recruit individual agents on a timely basis and at reasonable cost, there could be a material adverse effect on our results of operations.
•The Corporation is not a company incorporated under the Companies Act, 2013 and is established and governed as per the provisions of the Life Insurance Corporation Act, 1956 and the rules and regulations framed thereunder. Accordingly, the Corporation is not subject to the provisions of the Companies Act, 2013.
•The Market capitalization./ Embedded Value ratio based on Embedded Value as at September 30, 2021 for the Corporation at the upper end of the Price Band is 1.11, compared to the average industry peer group Market Capitalization / Embedded Value of 3.41 (simple average basis).
Potential investors may note that the Embedded Value of the Corporation could be sensitive to the equity markets given the size of the equity investment portfolio of the Corporation. •Average Cost of acquisition of Equity Shares for the Selling Shareholder is ₹0.16 each and Offer Price at upper end of the Price Band is ₹949. • Details of Acquisition of all Equity Shares transacted in last three years and one year: Period Weighted Average Cost of
Acquisition (in ₹)
upper end of the Price Band is ₹949. • Details of Acquisition of all Equity Shares transacted in last three years and one year:
| Period | Weighted Average Cost of Acquisition (in ₹) | Upper End of the Price Band (₹ 949) is ‘X’ times the Weighted Average Cost of Acquisition | Range of acquisition price: Lowest Price -Highest Price (in ₹) |
| Last 1 year | 0.16 | 5931 | Nil*-10.00** |
| Last 3 years | 0.16 | 5931 | Nil*-10.00** |
*Represents acquisition price of equity shares pursuant to bonus issue.
**The paid-up equity capital of the Corporation was ₹1,000 million (provided held by the GoI) prior to amendment to the Life Insurance Corporation Act by the Finance Act, 2021 (“Amendment”). Pursuant to the Amendment, the Corporation was required, with the previous approval of the GoI, to issue Equity Shares to the GoI in consideration for the paid-up equity capital provided by the GoI as it stood before the coming into force of Section 131 of the Finance Act, 2021.
• Weighted Average Return on Net Worth for Fiscals 2021, 2020 and 2019 is 182.25%. • The Ten Book Running Lead Managers associated with the Offer have handled 70 public issue in the past 3 years out of which 23 issues closed below the issue price on listing date.
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