HomeAbout UsCapabilites
Services
Audit & Assurance
Financial Statement audit & attestationFinancial Reporting advisory
Advisory
Link 1Link 2Link 3
Tax
Link 1Link 2Link 3
Business Services & Outsourcing
Link 1Link 2Link 3

Service

Audit & Assurance

Tax & Regualtory

Advisory

Bussiness & Outsourcing

Audit & Assurance

Financial Atatement Audit & Attestation

Financial Reporting Advisory

Tax & Regualtory

Corporate Tax

Indirect Tax

Finacial Sector

Family Office,estate & succession Planing

Advisory

Mergers & acquisitions

Valuation

Due diligence

Corporate finance & investment banking

Start-up advisory

hgghhgdgfhhgd

IPO advisory

IT risk advisory & assurance

Sustainability & ESG

BFSI advisory

Management consulting

Business & Outsourcing

Finance & Accounting Outsourcing

Global Outsourcing

Compliance

Fund Accouting & Trust Accounting

Virtual CFO

Payroll

Services

Audit & Assurance
Tax & Regulatory
Advisory
Business & Outsourcing

Audit & Assurance

Financial Statement Audit & Attestation

Financial Reporting Advisory

Featured

What is the COSO framework?

September 24, 2024

Going Concern: What It Means for Your Business

August 8, 2024

Fraudulent Financial Reporting

June 19, 2024

Tax & Regulatory

Corporate Tax

Indirect Tax

Financial Sector  

Family, Office, Estate & Succession Planning

Featured

What is the COSO framework?

September 24, 2024

Going Concern: What It Means for Your Business

August 8, 2024

Fraudulent Financial Reporting

June 19, 2024

Advisory

Mergers & Acquisitions

Valuation

Due Diligence

Corporate Finance & Investment Banking

Start-up Advisory

Promoter Restructuring & Succession Planning

IPO Advisory

IT Risk Advisory & Assurance

Sustainability & ESG

BFSI Advisory

Management Consulting

Featured

What is the COSO framework?

September 24, 2024

Going Concern: What It Means for Your Business

August 8, 2024

Fraudulent Financial Reporting

June 19, 2024

Business & Outsourcing

Finance & Accounting Outsourcing

Global Outsourcing

Compliance

Fund Accounting & Trust Accounting

Virtual CFO

Payroll

Featured

What is the COSO framework?

September 24, 2024

Going Concern: What It Means for Your Business

August 8, 2024

Fraudulent Financial Reporting

June 19, 2024

Services

Services

Audit & Assurance
Tax & Regulatory
Advisory
Business & Outsourcing

Audit & Assurance

Financial Statement Audit & Attestation

Financial Reporting Advisory

Featured

What is the COSO framework?

September 24, 2024

Going Concern: What It Means for Your Business

August 8, 2024

Fraudulent Financial Reporting

June 19, 2024

Tax & Regulatory

Corporate Tax

Indirect Tax

Financial Sector  

Family, Office, Estate & Succession Planning

Featured

Invoice Management System (IMS) under GST

September 18, 2024

GST IMPORTANT ANNOUNCEMENTS via CIRCULAR NO. 230 to 233 dated. 11th Sept. 2024

September 18, 2024

GST IMPORTANT ANNOUNCEMENTS IN 54TH GST COUNCIL MEETING (September 9, 2024)

September 13, 2024

Advisory

Mergers & Acquisitions

Valuation

Due Diligence

Corporate Finance & Investment Banking

Start-up Advisory

Promoter Restructuring & Succession Planning

IPO Advisory

IT Risk Advisory & Assurance

Sustainability & ESG

BFSI Advisory

Management Consulting

Featured

TAXATION OF INFLUENCERS AND CONTENT CREATORS: THE NEW FRONTIER

June 24, 2025

Corporate Social Responsibility (CSR)

June 23, 2025

Compulsory Convertible Debentures (CCD) & Compulsory Convertible Preference Shares (CCPS)

July 29, 2024

Business & Outsourcing

Finance & Accounting Outsourcing

Global Outsourcing

Compliance

Fund Accounting & Trust Accounting

Virtual CFO

Payroll

Featured

LEAVE & LAW POLICIES FOR EMPLOYEES IN INDIA

May 9, 2024

SOCIAL SECURITY LAWS- PF & ESIC

April 20, 2024

SOX Compliances

January 6, 2023

Audit & Assurance
Financial Statement Audit & AttestationFinancial Reporting Advisory
Advisory
Mergers & AcquisitionsValuationDue DiligenceCorporate Finance & Investment BankingStart-up AdvisoryPromoter Restructuring & Succession Planning IPO Advisory IT Risk Advisory & AssuranceSustainability & ESGBFSI advisoryManagement Consulting
Tax & Regulatory
Corporate TaxIndirect taxFinancial sector  Family, office, estate & succession planning
Business & Outsourcing
Finance & Accounting OutsourcingGlobal outsourcingComplianceFund accounting & Trust AccountingVirtual CFOPayroll
Solutions
Multinational CorporatesIndian CorporatesStartups
BlogsBlogsCareersContact UsContact Us
Schedule a consultation

LIC IPO

By
Team Bilimoria
June 3, 2022

Introduction: -

Life Insurance Corporation of India (LIC) is a giant Indian based Statutory insurance and investment corporation with nearly 290 million policy holders as of 2019, which makes up almost two-third of the overall Insurance sector. LIC was formed by nationalising and amalgamating private insurance companies which included around 245 companies under the Insurance Act, 1956. It started issuing policies in the year 1956, and thereby creating a monopoly on India’s Insurance sector. The Headquarters of LIC are in Mumbai with 2000 branches and 1 Lakh employees. Even in the liberalized scenario of Indian insurance sector it continues to be the dominant life insurer and is moving fast on a new growth trajectory surpassing its own past records.

Reason for launching IPO of LIC: -

More than two decades after privatisation, LIC continues to be the leader with 66% market share as of 2021. Its sheer size makes it a systematically important company for India. As a part of proactive strategy, the Government planned to launch LIC IPO due to following reasons:

Reasons for failure of IPO: -

There are certain reasons due to which the India’s most awaited IPO had a disappointing debut in the market. Some of the possible reasons are discussed below:

  1. The shares of the LIC fell prey to stock market volatility due to: -

2. Drastic cuts in plan of Government to sell it stakes which was earlier 10% to 5%.3.The Russia-Ukraine Crisis resulted in a global tension which created a panic among the foreign investors due to which they started selling their holdings.4. Owing to the deadline of Red Herring Prospectus, it was necessary to take appropriate steps due to which the government had to proceed with IPO even though the market conditions were critically volatile for an IPO debut.5. The growth of LIC’s new business premiums declined significantly as a result of lockdowns which were imposed due to Covid-19.6. The poor returns on insurances, lossy investments, lack of modernization, product diversity.7. Major government interference in decision making process.8. The big players of the share market silently exiting.

Impact of LIC IPO: -

LIC with hassle free processing and rich background in settling claims, has earned the trust of people. Since LIC majorly depends upon agents for selling its policies, it has created a large number of employment for people in India in the process. LIC had earned a good reputation in the Indian market over the years, which played a major role in creating anticipation among the people for the IPO. But the behemoth was unable to give listing gains to its investors, on the other hand investors of LIC lost over Rs. 50,000 crores since its debut on stock market on 17th May 2022.However, on a positive note, the LIC IPO may help rejuvenate before any real problems come to its door. It will ensure that the Government is not its sole owner. When the people would own LIC, even though a small share, they would have their representatives on the board. The management will have to professionalize and experts would take over its decision making. The resulting transparency and efficiency will ensure high returns to its customers.

Conclusion: -

The LIC IPO failed to meet the dreams and expectation of the investors. Though it had a poor debut, it has the potential to let the investors enjoy a reasonable amount of profits over a period of time. The IPO has avoided an increase in Tax rate to some extent as the Government obtained a fair amount to balance the impact of Covid-19 on the National economy. The market is still bullish on LIC owing to its strong fundamentals, stability, operating metrics, and expected recovery in the market.(This article represents the views of the authors only and does not intent to give any kind of legal opinion on any matter)Authors: Kushal Mehta Associate Consultant | +919930612247 | kushal.mehta@masd.co.in |LinkedIn profileShripriya AithalAssociate Consultant |+918779984264|shripriya.aithal@masd.co.in|LinkedIn profile

Explore More

June 24, 2025

Team Bilimoria

TAXATION OF INFLUENCERS AND CONTENT CREATORS: THE NEW FRONTIER

In recent years, the rise of social media has given birth to a new and powerful profession: AN INFLUENCER What began as individuals sharing their personal lives, opinions, and talents online has now evolved into a full-fledged marketing industry. Influencers are people with a dedicated following on social media platforms like Instagram and YouTube who partner with brands to promote products and services in a relatable & authentic way. This form of marketing, known as influencer marketing, has gained immense attraction due to its ability to reach niche audiences and drive engagement.

Read More

June 23, 2025

Team Bilimoria

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is outlined in Section 135 of Companies Act, 2013 and has been made mandatory for the companies following the specified criteria from April 1, 2014. CSR Activities were introduced with an intention to allow companies to contribute to the social, environmental, and economic development of the country.

Read More

Read All Blogs

BILiMORIA MEHTA & CO. is a leading Chartered Accountancy firm with a rich legacy of serving clients in India and internationally.

info@bilimoriamehta.com

+91 (22) 6697-2111

Company

  • About Us
  • Contact Us
  • Careers
  • Resources

Solutions

  • for Startups
  • for Indian Corporates
  • for Multinational Clientele

Solutions

  • Multinational Corporates
  • Indian Corporates
  • Startups

Services

  • Audit & Assurance
  • Tax & Regulatory
  • Advisory
  • Business & Outsourcing

Resources

  • Blogs
  • Regulatory Updates
© 2024 BILiMORIA MEHTA & Co. All Rights Reserved
Privacy PolicyTerms & Conditions