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Tag: LIC IPO

  • SC denies interim aid to policyholders in search of keep on LIC IPO shares allotment

    By PTI

    NEW DELHI: The Supreme Court Thursday refused to grant any interim aid and keep the Life Insurance Corporation (LIC) IPO share allotment on a batch of pleas filed by some policyholders.

    A bench of Justices DY Chandrachud, Surya Kant, and PS Narasimha mentioned that the courtroom must be reluctant to grant any interim aid in issues of business investments and IPO.

    “Having regard to the facts which have been drawn to the notice of the court, we are of the considered view that no case for the grant of interim relief is made out. We, therefore, decline interim relief,” the bench mentioned.

    It issued discover to the Centre and LIC on a writ petition filed by some policyholders and on an attraction filed in opposition to the judgement of the Madras High Court and transferred to itself a plea pending earlier than the Bombay High Court on the problem.

    The apex courtroom directed that replies be filed in eight weeks and rejoinder affidavits be filed thereafter in 4 weeks because it tagged the current proceedings with the pending matter on the problem of cash invoice earlier than the bigger bench.

    The bench mentioned, “On the aspect of whether any case is made for grant of interim relief, the court must be guided by the well-settled parameters namely -the existence of prima facie case, the balance of convenience and irreparable harm and injury.”

    It mentioned that on the facet of constitutional difficulty pertaining to the passage of cash invoice and on the development of part 28 of LIC Act, it’s inclined to difficulty the discover as it might be essential to watch that the submission which has been made on behalf of petitioners would warrant additional deliberation.

    The LIC IPO opened on May 4 for retail and different traders and is about to be allotted on Thursday.

    The bench famous that as many as 73 lakh candidates each in India and world wide have subscribed to the LIC’s IPO and the IPO has been oversubscribed six instances even within the class which has been particularly reserved for the policyholders.

    The high courtroom mentioned that it’s essential to notice the share dilution of the shareholding of the LIC because of the provide on the market is to the extent of three.5 per cent and 22.13 crore fairness shares of a face worth of Rs 10 every is being supplied at a premium of Rs 939.

    The bench mentioned that the anticipated receipt into the consolidated fund of India is estimated to be Rs 20,500 crores and the IPO has been oversubscribed by 2.95 instances by most of the people.

    It famous the submission of Additional Solicitor General N Venkatraman, showing for the Centre and LIC that part 28 of the LIC Act as initially enacted didn’t confer any contractual proper to the taking part policyholders to acceptable 95 per cent of the excess and the distribution of surplus was in all materials time dependent upon notification of the Central authorities.

    It famous that no statutory assure has been issued to the taking part shareholders on the distribution of a selected quantum of the excess and the modification which has been introduced by the Finance Act envisages allotment of shares to shareholders within the LIC.

    During the listening to, Venkatraman additional opposed the grant of any interim aid and adverted to numerous related dates having a bearing on the steadiness of comfort and mentioned that irreparable hurt can be prompted, if any interim aid is granted.

    He submitted that the invoice which ultimately resulted within the Finance Act, of 2021 was handed on March 28, 2021, almost 15 months in the past, and the petition beneath Article 32 which has been instituted earlier than the courtroom was filed on May 9, 2022, which is the date on which the LIC IPO stands closed. He identified that the attraction has been filed in opposition to the Madras HC verdict dated March 21 on May 2 and equally is the attraction filed in opposition to the Bombay HC order of April 11.

    At the outset, senior advocate Indira Jaising, showing for the petitioner policyholders, mentioned that the method which has led to the enactment of the modification to the LIC Act was on the premise that the Finance Act was the cash invoice and the problem has been referred to the bigger bench in 2020. She mentioned because of the modification to part 28 of the LIC Act, 1956, the character of the LIC which is within the nature of a mutual profit society is sought to be transformed to a joint-stock firm.

    She added this quantities to an expropriation of the excess and its distribution within the taking part policyholders to the shareholders to whom the shares might be allotted as the results of the IPO.

    Jaising mentioned earlier 95 per cent of surplus went to taking part policyholders whereas 5 per cent was retained by the Central authorities, which was only a trustee of the LIC.

    She added the entitlement of the taking part policyholders can be altered by the modification which has been caused by the Finance Act, 2021 to the provisions of the LIC Act and can be in violation of the provisions of the Constitution.

    The high courtroom famous that by the Finance Act of 2021, an modification was dropped at the LIC Act and on February 13, 2022, a draft crimson herring prospectus was filed with SEBI for the Initial Public Offering (IPO) of LIC.

    It famous that on April 26, 2022, the crimson herring prospectus was made accessible on SEBI’s web site, indicating a value band of Rs 902 to Rs 949 per fairness share with a reduction of Rs 60 for the policyholder.

    On April 27, a value band commercial was revealed and the federal government introduced that LIC’s IPO might be opened on May 2for anchor traders and from May 4 to May 9, 2022, for most of the people.

  • LIC IPO share allotment doubtless immediately: Here’s test your standing on-line

    LIC IPO obtained bids of over 47.83 crore (47,83,67,010) shares towards the entire challenge dimension of over 16.20 crore (16,20,78,067) shares, knowledge accessible with the National Stock Exchange (NSE) confirmed.

    The shares that are to be allotted for the certified institutional patrons (QIBs) was subscribed 2.83 instances, whereas these of non institutional traders was subscribed 2.91 instances and that of retail particular person traders (RIIs) was subscribed 1.99 instances, the information confirmed. Apart from these, the policyholders portion was subscribed 6.12 instances whereas the staff phase was subscribed 4.40 instances.

    The IPO is totally an offer-for-sale (OFS) the place the central authorities is promoting 22.13 crore (22,13,74,920) shares or 3.5 per cent of its stake within the life insurer.

    Investors are actually wanting ahead to the share allotment date of LIC IPO. The firm is meant to finalise the allotment by Thursday, May 12, 2022, as per the timeline offered within the crimson herring prospectus (RHP). In case you’ve gotten utilized for the LIC IPO, then right here is how one can test the standing of your allotment when it will get declared:

    The allotment standing will get up to date on the web site of the registrar of the IPO, which on this case is KFin Technologies (Click right here: https://ris.kfintech.com/ipostatus/ipos.aspx). Applicants might want to choose LIFE INSURANCE CORPORATION OF INDIA LIMITED within the drop-down menu and enter both their Application No. or DPID/Client ID or PAN, enter the Captcha code (which is proven in digits) and click on on Submit to view their allotment standing.

    Apart from the registrar’s web site, candidates may also test the standing of their allotment on the web site of the BSE (Click right here: https://www.bseindia.com/investors/appli_check.aspx). Here, they might want to choose Equity in Issue Type, then choose LIFE INSURANCE CORPORATION OF INDIA LTD from the drop-down record within the Issue Name part, enter their Application Number and PAN Number within the respective packing containers after which click on on search to view their standing.

    The itemizing of shares of LIC is more likely to happen on Tuesday, May 17, 2022, on each the NSE and BSE.

    Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, Nomura Financial Advisory and Securities India, Goldman Sachs India Securities, ICICI Securities, JM Financial, JP Morgan India and SBI Capital Markets are the e book operating lead managers to the IPO.

  • LIC IPO subscribed 2.95 instances on closing day; highlight on self reliance: DIPAM

    The preliminary public providing (IPO) of Life Insurance Corporation of India (LIC) has obtained good response from traders, with the provide being subscribed 2.95 instances (295 per cent) on the ultimate day of the provide interval.

    The IPO obtained bids for 47.83 crore fairness shares in opposition to IPO dimension of 16.2 crore fairness shares. At the higher finish of the value band of Rs 949, the IPO would have garnered round Rs 45,000 crore.

    The portion put aside for policyholders has been subscribed 6.12 instances, workers bid 4.40 instances the allotted quota and retail traders 1.99 instances, whereas the reserved portion of certified institutional consumers has booked 2.83 instances and that of non-institutional traders 2.91 instances. FPIs who had been initially cool to the provide bid for two.41 crore shares.

    Bidders within the IPO can be allotted shares on May 12, and the insurer can be listed on inventory exchanges on May 17, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey stated on Monday.

    After the closing of the problem, Pandey stated the IPO has met with great success throughout all of the segments. “Domestic investors have successfully pulled off the LIC IPO. It is an example of Aatmanirbhar Bharat,” he instructed journalists, whereas responding to a query on comparatively weaker FII response to the IPO.

    “It shows that capacity of Indian capital market has increased substantially and it also shows that we can run our own capital market without depending on foreign investors…It is a fact that predominately this issue has been domestically lifted,” he stated. The overseas traders are additionally welcome and a few of them did take part within the concern, he asserted.

    The company has priced the IPO within the vary of Rs 902-949 per share. It has supplied a reduction of Rs 60 for policyholders and Rs 45 for retail traders and workers. The dimension of the IPO was minimize from Rs 65,000 crore to Rs 21,000 crore because the Russian invasion of Ukraine and sustained promoting by overseas traders despatched the inventory markets right into a tailspin.

    LIC mobilised Rs 5,627 crore from anchor traders on Monday. Domestic mutual funds invested Rs 4,002.27 crore, accounting for 71.12 per cent of the full anchor ebook portion of the IPO. SBI Mutual Fund invested Rs 1,006.89 crore, turning into the biggest investor within the anchor ebook quota. “Participation from tier 2-3 cities was high for LIC IPO. We can attribute this to the deeper agent and policy holder penetration of LIC. We have got a good number of applications from the newly formed Union territories as well,” stated Girirajan Murugan, CEO, FundsIndia. “We are sure this will pave the way for larger retail participation in the Secondary markets as well as the accounts opened for applying to LIC IPO will be used for larger investments in the equity markets,” Murugan stated.

  • IPO Wrap: LIC IPO subscribed 2.95 instances on remaining day led by demand from policyholders and staff

    LIC IPO subscription standing: India’s largest preliminary public providing (IPO) of insurance coverage sector behemoth Life Insurance Corporation of India (LIC), which was launched final Wednesday met with a optimistic response by the buyers throughout the board because it obtained subscribed 2.95 instances on the ultimate day, in response to the info accessible on the BSE.

    The Rs 21,000 crore supply obtained bids for over 47.83 crore (47,83,25,760) shares towards the entire challenge dimension of over 16.20 crore (16,20,78,067) shares, the info confirmed.

    The shares that are to be allotted for the certified institutional patrons (QIBs) was subscribed 2.83 instances, whereas these of non institutional buyers was subscribed 2.91 instances and that of retail particular person buyers (RIIs) was subscribed 1.99 instances, the info confirmed. Apart from these, the policyholders portion was subscribed 6.11 instances whereas the workers phase was subscribed 4.39 instances.

    The LIC IPO is totally an offer-for-sale (OFS) the place the central authorities is promoting 22.13 crore (22,13,74,920) shares or 3.5 per cent of its stake within the life insurer.

    The 6-day blockbuster IPO had opened for subscription on Wednesday, May 4, 2022, and concluded at 7 pm at the moment. It has a value band of Rs 902-949 per share and got here with a reduction of Rs 60 per share for policyholders and Rs 45 apiece for retail buyers and staff. The LIC IPO was stored open even this previous Saturday and Sunday to permit individuals to take part. This was maybe for the primary time a particular dispensation is granted to any public supply.

    Before heading into the IPO, the life insurance coverage big had raised over Rs 5,627 crore from the anchor buyers.

    LIC is the nation’s oldest and largest life insurance coverage agency. It was shaped by merging and nationalising 245 personal life insurance coverage firms on September 1, 1956, with an preliminary capital of Rs 5 crore. LIC now manages round Rs 40 lakh crore property and is the fifth-largest life insurer globally and the biggest asset supervisor within the nation.

    Going forward, buyers will now stay up for the share allotment date of the problem. The finalisation of the idea of allotment for LIC is predicted to happen on Thursday, May 12, 2022, as per the knowledge supplied within the purple herring prospectus.

  • Foreign buyers shun LIC IPO over market dangers

    Foreign institutional buyers have on the entire steered away from India’s greatest share sale, deeming it too costly given forex dangers and the worldwide market backdrop.

    With simply hours to go till the tip of the subscription interval for the $2.7 billion preliminary public providing of Life Insurance Corporation of India, international institutional funds have put in orders for merely 8% of the shares put aside for all institutional consumers.

    While the anchor portion of the IPO drew in sovereign funds from Norway and Singapore, many of the shares went to home mutual funds.

    “Foreign institutional investors have been pulling out heavily in the secondary market since October. The Fed rate hike and the recent slide in the rupee against the dollar further enhances risks of currency depreciation that can erode their asset price gains in India,” mentioned Vidya Bala, head of analysis and co-founder at Chennai-based Primeinvestor.in.

    “So there is little reason for them to participate in an IPO, large as it may be.”

    Source: Bloomberg

    Dubbed India’s “Aramco moment” in reference to Gulf oil large Saudi Arabian Oil Co.’s $29.4 billion itemizing in 2019 — the world’s largest — the float of LIC has ended up resembling the Aramco IPO not simply in scale however in its reliance on home buyers after international consumers deemed the float too costly.

    LIC has been in search of to drum up curiosity with newspaper ads because the begin of the 12 months, in search of to reap the benefits of a retail funding growth in India.

    India’s authorities had lower the fundraising of the IPO by about 60% because the battle in Ukraine roiled markets, denting danger urge for food, whereas rising U.S. rates of interest are placing international buyers off rising market shares. It additionally lower the valuation it’s in search of for the nation’s oldest insurer, which might be price 6 trillion rupees ($78 billion) on the prime of the worth vary.

    Locals Pile In

    While international buyers have shunned the deal, retail consumers have been piling in. Policyholders positioned bids for over 5 occasions the shares reserved for them, whereas the worker portion obtained orders for 4 occasions the quantity accessible, inventory alternate information confirmed. Retail buyers and policyholders obtain reductions on the supply worth.

    Overall, the IPO has obtained orders for double the shares on supply, whereas the tranche for institutional buyers is now totally offered.

    The muted worldwide investor curiosity stands in sharp distinction to a few of final 12 months’s Indian IPOs. One97 Communications Ltd., which operates digital funds agency Paytm, drew within the likes of BlackRock Inc., Canada Pension Plan Investment Board and Teacher Retirement System of Texas, amongst many others, for its 183 billion rupee share sale final 12 months. Food supply platform Zomato Ltd. was equally widespread amongst international buyers.

    However these consumers have been left nursing losses as enthusiasm over India’s tech growth waned after some flops. Paytm sank 27% on its debut and is now buying and selling 74% beneath its supply worth. Zomato had a powerful debut final summer season however has since misplaced 20% in worth.

    Investors have additionally had issues about LIC’s means to maintain market share as personal insurers like HDFC Life Insurance Co. Ltd. and SBI Life Insurance Co. Ltd. develop. The personal sector has been on an aggressive growth spree in the course of the pandemic, rising new particular person coverage premiums whereas LIC struggles.

    “Foreign institutional investors generally, have never been big on state-run companies as it is very difficult to make money off them,” mentioned Abhay Agarwal, fund supervisor Piper Serica Advisors Ltd. “For LIC too the government was unable to convincingly communicate to global investors that the insurer will prioritize the interest of shareholders and won’t function merely as a government entity.”