Several investment firms in the country have warned investors about the number of LIC shares.
The IPO of Life Insurance Corporation (LIC) is coming to the market on Wednesday. From the 4th to the 9th, investors will have the opportunity to buy shares. In addition to regular investors in the stock market, policyholders can also buy shares of this state-owned company. There are also special discounts for policyholders. Many will rush to buy the shares of this state-owned company which is very profitable. But several investment firms in the country have warned that investors should keep in mind the number of LIC shares.
This state-owned company does not have a strong presence in the digital world. Most of their policies are sold through agents and the premiums are collected by the agents themselves. According to the insurance company, only 36 percent of policyholders pay premiums using digital media. In comparison, about 90 percent of the premiums of private companies are paid through the net. According to experts, if this pattern continues in the future, the overall cost of LIC will continue to rise.
LIC’s compounded annual growth rate hovered between 9 percent in FY15-15 and 2020-21. On the other hand, the number of private insurance companies has increased by 16 percent during the same period.
The price per share of Life Insurance Corporation will be fixed from Tk 902 to Tk 949, according to SEBI. Investors can apply for shares of 15 and their multiples. 2.21 crore shares will be reserved for life insurance customers and 1.56 crore for employees. Employees will get a discount of Tk 45 per share and life insurance customers will get a discount of Tk 80.
