LIC IPO: All you need to know about Indias largest IPO
LIC IPO: The initial public offering of Indias largest IPO, Life Insurance Corporation of India (LIC), will open on Wednesday, May 4, 2022 and conclude on May 9, 2022.
LIC IPO: The initial public offering of India's largest IPO, Life Insurance Corporation of India (LIC), will open on Wednesday, May 4, 2022 and conclude on May 9, 2022. So far, Paytm, which mobilised Rs 18,300 crore last year, and Coal India with Rs 15500 crore have raised maximum amount from the secondary market.
LIC aims to raise Rs 20,557 crore through 3.5 per cent share sale. Earlier, LIC has said it has garnered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions.
Anchor Investors' (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share, the insurer said in an early morning filing to stock exchanges.
LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will also get a discount of Rs 45 per equity share and policyholders will get a discount of Rs 60 per share.
As LIC IPO opens for subscription today, Zee Business brings you live updates to keep you informed about the action in the country's biggest initial public offering. Catch all LIVE updates here
Latest Updates
Is LIC IPO causing liquidity crisis in the market- Here is what Anil Singhvi says
LIC IPO: What should investors do? Strategy for retail investors, policy holders- Anil Singhvi's speaks on India's largest IPO
Reliance Power worst performer among biggest IPOs
Reliance Power, which was the third largest IPO after Paytm and Coal India before LIC IPO launch, is the worst performer of all in terms of correction on issue price. Reliance Power has corrected 96.8% on its issue price as on April 2. Here is how other biggest IPOs have performed
Company Issue Price (cr) Performance
Paytm `2150 -72%
Coal India `245 -23.7%
Reliance Power `450 -96.8%
General Insurance `912 -85.4%
SBI Card `755 +8.6%
LIC is coming with India's biggest issue size. Here is the list of other top biggest IPOs of the Indian stock market
Company Size (in crore) IPO date
LIC `20557 4-9 May, 2022
Paytm `18300 8-10 Nov,2021
Coal India `15475 18-21 Oct,2010
Reliance Power `11563 15-18 Jan,2008
General Insurance `11372 11-13 Oct,2017
SBI Card `10354 2-5 Mar,2020
Can investors make multiple applications on 1 PAN card?
The answer to this is yes, says Zee Business Managing Editor Anil Singhvi.Usually in IPOs, an investor who is applying under the retail investor category is not allowed to apply in other categories like HNI, Singhvi said adding that only one category is permitted on a PAN card. But in LIC IPO, investors can apply simultaneously under two categories on a single PAN card, the Market Guru said. If you are applying in retail category, you can take a discount of Rs 45.
LIC well placed to capture the highly underpenetrated life insurance industry: Motilal Oswal
"LIC with its dominant position is well placed to capture the highly underpenetrated life insurance industry in India. We like its increasing focus on non-par products which could boost its VNB margins. It is valued at 1.1x 1HFY22 EV which is at significant discount to its private listed peers. Hence we suggest investors to Subscribe to the IPO."
Issue is at a significant discount to its listed peers, subscribe: LKP Securties
Indias life insurance industry is expected to grow rapidly, owing to a relatively underpenetrated market and expanding awareness, which presents a multi-year growth opportunity. LIC has been providing life insurance in India for over 65 years and is the countrys biggest life insurer, with a significant brand value advantage. There are concerns about losing market share to private players and having lower profitability and revenue growth when compared to private players. However, we believe that LICs distribution advantage, increasing sales mix of direct and corporate channels, and a gradual shift to high margin Non- participating products could be possible drivers for LICs future growth, negating lower than industry growth rates. At the upper price band, the stock is priced at 1.1x of its 2QFY22 Indian Embedded value (Market capitalization/Embedded value: Rs6 trillion/Rs5.39 trillion), which is at a significant discount to its listed peers. Currently listed insurance companies trade at Market capitalization/EV multiple of ~2.8x. LIC has a marquee anchor list of investors and we recommend SUBSCRIBE to the LIC IPO.
Can you get a discount of Rs 150 per share in single application in LIC IPO? This is what Anil Singhvi says
In this short video Zee Business Managing Editor Anil Singhvi addresses a question if an investor can avail a discount of Rs 150 through one application.
Apply with long-term View: Anil Singhvi
Zee Business Managing Editor Anil Singhvi said it is highly likely that investors would be able to make money in both short-term and long-term, however, the market guru recommended investors to buy the IPO keeping a long-term perspective.
LIC reaches its policyholders via SMS on IPO eve
Ahead of its initial public offering, insurance behemoth LIC on Tuesday approached its policyholders through SMS and other medium to inform them about the share sale.
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