LIC IPO: Life Insurance Corporation has set a price band of ₹902 to ₹949 per equity share for the public offer, which closes on May 9. Though trimmed, LIC IPO will be the biggest public offer to date in the country. The government is offloading 3.5% or 22.13 crore shares and targets to raise ₹20,550 crore through this public issue. The government had decided to reduce the size of the IPO due to the volatility in the market. LIC policy holders will get a discount of will get a discount of ₹60 per equity share. Retail and employees will get a discount of ₹40. LIC IPO is set to see a strong demand, given attractive pricing, says analysts. According to market observers, LIC is trading a healthy premium or GMP.
LIC IPO – First subscription details in
LIC IPO was 0.02 times subscribed as of 10:15 am. The retail segment was subscribed 0.04 times. In the LIC IPO, 35% of shares or 6,918 crore shares are reserved for retail investors while 50% for QIB portion and 15% for non-institutional investors.
Sensex struggles as LIC IPO opens for subscription
State-run insurer Life Insurance Corporation’s initial public offering opened for bids today. The Sensex was down about 140 points ahead of the US Fed decision. “The Fed decision expected late tonight will be crucial in determining the trend of the markets globally. Markets already know and have discounted 50 bp rate hike and $95 billion worth balance sheet reduction. Therefore, market trend after the Fed announcement will be influenced by the Fed’s guidance on inflation, future rate hikes and further balance sheet reduction,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
LIC IPO set to see strong demand
Analysts say that LIC IPO is very attractively priced and could see a strong demand. Despite the trimmed size of the IPO, LIC’s issue will be the biggest primary offering in domestic equity market. Despite opening up of the insurance market in 2000-01 to the private players, still today LIC commands a dominant position in the domestic market. At the higher price band, LIC is demanding a P/EV multiple of 1.1x, which is at significant discount to the multiples of private players (ranging from 2.5-4.2x). Thus considering the above observations, we assign a ‘SUBSCRIBE rating for the issue,” Choice Broking said in a report.
‘LIC IPO is just a steal’: Deepak Shenoy
In a tweet, Deepak Shenoy, CEO of CapitalMind, said: “We’ve changed our mind. This LIC IPO is just a steal at a 600,000 crore market cap. They should make about 50,000 cr. in profits in FY2023!” Even after the reduced size of about ₹20,557 crore, LIC IPO is going to be the biggest initial public offering ever in the country. So far, the amount mobilized from the IPO of Paytm in 2021 was the largest ever at ₹18,300 crore, followed by Coal India (2010) at nearly ₹15,500 crore and Reliance Power (2008) at ₹11,700 crores.
LIC IPO listing, allocation dates
LIC IPO is set to get listed on BSE and NSE on 17th May. According to brokerages, finalization of basis of allotment is likely to be on 12th May 2022, unblocking of ASBA account 13th May, and credit to demat accounts on 16th May 2022.
LIC IPO – Latest GMP ahead of opening of issue
According to market observers, LIC shares are quoting at a GMP of ₹85 per share as the issue is set to open for subscription later today. India: LIC is the largest asset manager in India as at December 31, 2021, with AUM (comprising policyholders’ investment, shareholders’ investment and assets held to cover linked liabilities) of ₹40 trillion on a standalone basis.
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