Report Wire

Tag: LIC IPO

  • All You Need to Know About the LIC IPO

    Introduction

    The dates for the launch of the LIC’s IPO have lastly been fastened. According to the newest reviews, the LIC IPO is slated to open on 4 May 2022 and shut on 9May 2022. This information has introduced some respite for the traders whose nervousness ranges reached sky-high after ready for the IPO for fairly a while now. This IPO was earlier purported to get launched earlier than 31March 2022. However, the continued Russia-Ukraine warfare led to the delay of the launch date.

    Talking in regards to the LIC IPO, it’s anticipated to be India’s largest IPO to this point, surpassing PayTM’s IPO. The complete valuation of this IPO is predicted to be round Rs. 21,000 crore and the LIC being India’s largest and world’s fifth-largest life insurance coverage firm might create a stir within the Indian inventory markets. Continue studying to know all the things in regards to the LIC IPO intimately.

    The provide particulars

    As talked about, the LIC IPO is predicted to be India’s biggest-ever IPO with a valuation of roughly Rs. 21,000 crores. It would surpass the PayTM IPO, which is the present report holder with a valuation of Rs. 18,300 crore. The authorities of India, which owns a 100% stake within the LIC, is planning to promote a 3.5% stake within the firm by this IPO. This is a decline from the sooner estimates of the sale of a 5% stake.

    As per the Draft Red Herring Prospectus (DRHP) filed by the LIC with the Securities and Exchange Board of India (SEBI), the IPO might encompass 31,62,49,885 fairness shares with a face worth of Rs. 10 per share. Fifty % of this public challenge can be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Buyers (NIBs), and the remaining 35% for retail traders.

    IPO Timeline

    Although the precise IPO timeline is but to be introduced by the issuing firm, the tentative dates for closing and opening of the IPO are out to the general public. If all the things goes nicely, the LIC IPO might open on 4May 2022 and shut on 9 May 2022. This IPO was earlier scheduled for launch in March 2022, however the ongoing Russia-Ukraine warfare led to its postponement.

    The tentative IPO allotment date, refund date, and itemizing date are but to be introduced. The IPO may very well be priced within the vary of Rs. 950 to Rs. 1,000 per fairness share.

    Details of the issuing firm

    The issuing firm of the IPO is the Life Insurance Corporation (LIC) of India. At current, it’s India’s largest life insurance coverage firm and the fifth-largest globally. As per the DRHP, the embedded worth of the LIC is roughly Rs. 5.4 lakh crore. However, going by the federal government’s estimates of a 3.5% stake price Rs. 21,000 crore, the corporate’s valuation might change into greater than Rs. 6 lakh crore.

    The LIC has a large market share of 66.2% in India by way of new enterprise premium and 74.6% by way of the variety of particular person insurance policies issued. It additionally has a big international presence with the entire Assets Under Management (AUM) price Rs. 31 lakh crore. LIC can be the most important institutional investor in India with a complete funding of roughly Rs. 120 lakh crore.

    The complete income generated by the LIC in the course of the monetary years 2019-20, 2020-21, and 2021-22 stood at Rs. 2627.30 crore, Rs. 2710.40 crore, and Rs. 29,74.40 crore, respectively.

    Strengths and Weaknesses

    Let’s consider the strengths and weaknesses of the LIC IPO. Below are the strengths of this IPO, which is touted as India’s biggest-ever IPO:

    LIC is the main life insurance coverage firm in India and fifth-largest globally
    The firm presents a variety of life insurance coverage merchandise to cater to diversified public wants
    It has a really sturdy distribution community with 1.34 million brokers, 2048 branches, and 174 alternate channels throughout India
    Largest asset supervisor within the nation with a confirmed observe report

    Below are the dangers and weaknesses:

    The COVID-19 pandemic has impacted the enterprise adversely
    Any unfavourable publicity can impression the model identify
    Adverse variation in persistency metrics might impression the revenues
    Rise of a number of personal gamers within the section
    Market downswings can extremely impression the corporate’s valuation

    The ultimate phrases

    The LIC IPO has already created a euphoria among the many traders and it might shake up the Indian inventory market as soon as it will get launched. If you need to subscribe to the LIC IPO, you may apply for it through a demat account. You can open your demat account without spending a dime with ICICIdirect, one of many main stockbrokers in India. Moreover, it’s also possible to select a brokerage construction as per your necessities. Being a full-service dealer, they supply advisory providers together with buying and selling amenities.

    This content material is distributed by Icici direct. No TNIE Group journalist is concerned within the creation of this content material.

  • All You Need to Know About the LIC IPO

    Introduction

    The dates for the launch of the LIC’s IPO have lastly been fastened. According to the most recent studies, the LIC IPO is slated to open on 4 May 2022 and shut on 9May 2022. This information has introduced some respite for the buyers whose nervousness ranges reached sky-high after ready for the IPO for fairly a while now. This IPO was earlier speculated to get launched earlier than 31March 2022. However, the continued Russia-Ukraine conflict led to the delay of the launch date.

    Talking concerning the LIC IPO, it’s anticipated to be India’s largest IPO so far, surpassing PayTM’s IPO. The whole valuation of this IPO is anticipated to be round Rs. 21,000 crore and the LIC being India’s largest and world’s fifth-largest life insurance coverage firm might create a stir within the Indian inventory markets. Continue studying to know all the pieces concerning the LIC IPO intimately.

    The provide particulars

    As talked about, the LIC IPO is anticipated to be India’s biggest-ever IPO with a valuation of roughly Rs. 21,000 crores. It would surpass the PayTM IPO, which is the present report holder with a valuation of Rs. 18,300 crore. The authorities of India, which owns a 100% stake within the LIC, is planning to promote a 3.5% stake within the firm by this IPO. This is a decline from the sooner estimates of the sale of a 5% stake.

    As per the Draft Red Herring Prospectus (DRHP) filed by the LIC with the Securities and Exchange Board of India (SEBI), the IPO might include 31,62,49,885 fairness shares with a face worth of Rs. 10 per share. Fifty % of this public challenge could be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Buyers (NIBs), and the remaining 35% for retail buyers.

    IPO Timeline

    Although the precise IPO timeline is but to be introduced by the issuing firm, the tentative dates for closing and opening of the IPO are out to the general public. If all the pieces goes properly, the LIC IPO might open on 4May 2022 and shut on 9 May 2022. This IPO was earlier scheduled for launch in March 2022, however the ongoing Russia-Ukraine conflict led to its postponement.

    The tentative IPO allotment date, refund date, and itemizing date are but to be introduced. The IPO might be priced within the vary of Rs. 950 to Rs. 1,000 per fairness share.

    Details of the issuing firm

    The issuing firm of the IPO is the Life Insurance Corporation (LIC) of India. At current, it’s India’s largest life insurance coverage firm and the fifth-largest globally. As per the DRHP, the embedded worth of the LIC is roughly Rs. 5.4 lakh crore. However, going by the federal government’s estimates of a 3.5% stake value Rs. 21,000 crore, the corporate’s valuation might become greater than Rs. 6 lakh crore.

    The LIC has an enormous market share of 66.2% in India by way of new enterprise premium and 74.6% by way of the variety of particular person insurance policies issued. It additionally has a major world presence with the full Assets Under Management (AUM) value Rs. 31 lakh crore. LIC can be the biggest institutional investor in India with a complete funding of roughly Rs. 120 lakh crore.

    The whole income generated by the LIC in the course of the monetary years 2019-20, 2020-21, and 2021-22 stood at Rs. 2627.30 crore, Rs. 2710.40 crore, and Rs. 29,74.40 crore, respectively.

    Strengths and Weaknesses

    Let’s consider the strengths and weaknesses of the LIC IPO. Below are the strengths of this IPO, which is touted as India’s biggest-ever IPO:

    LIC is the main life insurance coverage firm in India and fifth-largest globally
    The firm presents a variety of life insurance coverage merchandise to cater to diversified public wants
    It has a really sturdy distribution community with 1.34 million brokers, 2048 branches, and 174 alternate channels throughout India
    Largest asset supervisor within the nation with a confirmed observe report

    Below are the dangers and weaknesses:

    The COVID-19 pandemic has impacted the enterprise adversely
    Any unfavourable publicity can affect the model title
    Adverse variation in persistency metrics might affect the revenues
    Rise of a number of personal gamers within the section
    Market downswings can extremely affect the corporate’s valuation

    The last phrases

    The LIC IPO has already created a euphoria among the many buyers and it might shake up the Indian inventory market as soon as it will get launched. If you need to subscribe to the LIC IPO, you possibly can apply for it through a demat account. You can open your demat account free of charge with ICICIdirect, one of many main stockbrokers in India. Moreover, you too can select a brokerage construction as per your necessities. Being a full-service dealer, they supply advisory providers together with buying and selling amenities.

    This content material is distributed by Icici direct. No TNIE Group journalist is concerned within the creation of this content material.

    Introduction

    The dates for the launch of the LIC’s IPO have lastly been fastened. According to the most recent studies, the LIC IPO is slated to open on 4 May 2022 and shut on 9May 2022. This information has introduced some respite for the buyers whose nervousness ranges reached sky-high after ready for the IPO for fairly a while now. This IPO was earlier speculated to get launched earlier than 31March 2022. However, the continued Russia-Ukraine conflict led to the delay of the launch date.

    Talking concerning the LIC IPO, it’s anticipated to be India’s largest IPO so far, surpassing PayTM’s IPO. The whole valuation of this IPO is anticipated to be round Rs. 21,000 crore and the LIC being India’s largest and world’s fifth-largest life insurance coverage firm might create a stir within the Indian inventory markets. Continue studying to know all the pieces concerning the LIC IPO intimately.googletag.cmd.push(perform() googletag.show(‘div-gpt-ad-8052921-2’); );

    The provide particulars

    As talked about, the LIC IPO is anticipated to be India’s biggest-ever IPO with a valuation of roughly Rs. 21,000 crores. It would surpass the PayTM IPO, which is the present report holder with a valuation of Rs. 18,300 crore. The authorities of India, which owns a 100% stake within the LIC, is planning to promote a 3.5% stake within the firm by this IPO. This is a decline from the sooner estimates of the sale of a 5% stake.

    As per the Draft Red Herring Prospectus (DRHP) filed by the LIC with the Securities and Exchange Board of India (SEBI), the IPO might include 31,62,49,885 fairness shares with a face worth of Rs. 10 per share. Fifty % of this public challenge could be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Buyers (NIBs), and the remaining 35% for retail buyers.

    IPO Timeline

    Although the precise IPO timeline is but to be introduced by the issuing firm, the tentative dates for closing and opening of the IPO are out to the general public. If all the pieces goes properly, the LIC IPO might open on 4May 2022 and shut on 9 May 2022. This IPO was earlier scheduled for launch in March 2022, however the ongoing Russia-Ukraine conflict led to its postponement.

    The tentative IPO allotment date, refund date, and itemizing date are but to be introduced. The IPO might be priced within the vary of Rs. 950 to Rs. 1,000 per fairness share.

    Details of the issuing firm

    The issuing firm of the IPO is the Life Insurance Corporation (LIC) of India. At current, it’s India’s largest life insurance coverage firm and the fifth-largest globally. As per the DRHP, the embedded worth of the LIC is roughly Rs. 5.4 lakh crore. However, going by the federal government’s estimates of a 3.5% stake value Rs. 21,000 crore, the corporate’s valuation might become greater than Rs. 6 lakh crore.

    The LIC has an enormous market share of 66.2% in India by way of new enterprise premium and 74.6% by way of the variety of particular person insurance policies issued. It additionally has a major world presence with the full Assets Under Management (AUM) value Rs. 31 lakh crore. LIC can be the biggest institutional investor in India with a complete funding of roughly Rs. 120 lakh crore.

    The whole income generated by the LIC in the course of the monetary years 2019-20, 2020-21, and 2021-22 stood at Rs. 2627.30 crore, Rs. 2710.40 crore, and Rs. 29,74.40 crore, respectively.

    Strengths and Weaknesses

    Let’s consider the strengths and weaknesses of the LIC IPO. Below are the strengths of this IPO, which is touted as India’s biggest-ever IPO:

    LIC is the main life insurance coverage firm in India and fifth-largest globally
    The firm presents a variety of life insurance coverage merchandise to cater to diversified public wants
    It has a really sturdy distribution community with 1.34 million brokers, 2048 branches, and 174 alternate channels throughout India
    Largest asset supervisor within the nation with a confirmed observe report
    Below are the dangers and weaknesses:

    The COVID-19 pandemic has impacted the enterprise adversely
    Any unfavourable publicity can affect the model title
    Adverse variation in persistency metrics might affect the revenues
    Rise of a number of personal gamers within the section
    Market downswings can extremely affect the corporate’s valuation
    The last phrases

    The LIC IPO has already created a euphoria among the many buyers and it might shake up the Indian inventory market as soon as it will get launched. If you need to subscribe to the LIC IPO, you possibly can apply for it through a demat account. You can open your demat account free of charge with ICICIdirect, one of many main stockbrokers in India. Moreover, you too can select a brokerage construction as per your necessities. Being a full-service dealer, they supply advisory providers together with buying and selling amenities.

    This content material is distributed by Icici direct. No TNIE Group journalist is concerned within the creation of this content material.

  • Ahead of LIC IPO, Irdai permits insurers to speculate extra in BFSI

    Paving the way in which for extra funding within the monetary sector and insurance coverage corporations, insurance coverage regulator Irdai has hiked the publicity restrict of insurance coverage corporations in such corporations to 30 per cent.

    The hike within the publicity restrict comes forward of the mega IPO of Life Insurance Corporation (LIC). “The Authority in exercise of its powers conferred under the Irdai (Investment) Regulations, 2016, permits all insurers to have exposure to financial and insurance activities (as per section K of NIC classification) up to 30 per cent of investment assets. Accordingly, the limit of 25 per cent of investment assets mentioned in Irdai (Investment) Regulations, 2016 stands revised to a limit of 30 per cent of Investment Assets,” Irdai mentioned in a round. The Irdai transfer is anticipated to permit insurance coverage corporations to speculate extra funds within the LIC IPO, insurance coverage officers mentioned.

    Weightage of monetary and insurance coverage corporations in broader Indian market indices has constantly gone up over the previous couple of years. “Life insurance industry had been seeking an increase in the current 25 per cent sectoral limit on exposure to the BFSI sector. The increase in this limit to 30 per cent will provide the much-needed leeway for the insurance companies to increase their exposure to the sector and bring it closer to the broader market levels,” mentioned Sampath Reddy, chief funding officer, Bajaj Allianz Life.

    “Additionally, they would also be in position to hold a much wider basket of diverse stocks within the sector and participate in the promising Indian growth story through the same,” Reddy mentioned. LIC on Wednesday priced its preliminary public providing (IPO) within the vary of Rs 902-949 per share. LIC IPO will open on May 4 and can shut on May 9.

    Insurance corporations led by LIC, New India Assurance and others are main gamers within the capital market. LIC is the most important investor in inventory markets. LIC booked revenue price Rs 42,862 crore from the sale of investments, primarily from equities, within the first 9 months of the fiscal yr 2022.

    In 2013, Irdai allowed insurance coverage corporations to carry as much as 15 per cent stake in any firm, up from 10 per cent.

  • Left opposes LIC IPO, alleges ‘rip-off’, ‘unload’

    By PTI

    NEW DELHI: Left events on Thursday attacked the federal government over its transfer to drift the LIC IPO alleging that it was a “scam” and a “sell-off”.

    The CPI in a press release mentioned it was part of the “privatisation spree” of the federal government.

    Communist Party of India (CPI) common secretary D Raja mentioned it was a “matter of regret” that the BJP-led NDA authorities is promoting off all nationwide property via monetisation coverage and privatisation of public sector items. He mentioned it was a “tragedy” that these long-term property are being offered to gather income to fulfill the present expenditure.

    Raja mentioned the transfer was additionally the failure of the federal government to safe sufficient funds via both retaining the sooner greater company taxes or mountaineering them additional, if needed, to offset the heavy losses brought on by “rightist US-model economic policies”.

    The “sell-offs” are sure to have an effect on the sovereignty and financial independence of nation which in distinction will profit the corporates, each home and overseas, he mentioned.

    “Continuing with retrograde right-wing measures, the Modi government has announced that its share capital in the country’s flagship financial institution, LIC will be sold off. With such sale, 22 crore of LIC’s shares are being given in private hands which will fetch about Rs 20,000 crore of revenue to the central government. The move is totally a retrograde one, which is against the national interests and against the interest of LIC’s policy holders. The Party calls upon the government to immediately halt its privatisation spree as well as sell-off of its national assets,” Raja mentioned.

    CPI-Marxist common secretary Sitaram Yechury referred to as the transfer a “Scam of gigantic proportions”, and a “mega plunder of people’s resources”.

    “LIC has been the biggest contributor funding the development of India’s infrastructure. Since 1956 it contributed ? 35L Cr. Now these funds would be placed at the disposal of predatory foreign fund managers who seek private profit maximisation in stock markets of the world. In the interest of India and our people all these questions concerning LIC IPO must be answered. The procedures adopted smack of a scam of gigantic proportions. Scrap this IPO,” he tweeted.

  • LIC IPO to open May 4, value band set at Rs 902-949 per share

    LIC IPO: The preliminary public providing (IPO) of life insurance coverage behemoth Life Insurance Corporation of India (LIC) will open on Wednesday, May 4, 2022. The value band of the IPO has been set at Rs 902-949 per share.

    The authorities goals to boost Rs 21,000 crore from the general public situation by divesting a 3.5 per cent stake within the insurance coverage big.

    Speaking on the press convention, DIPAM Secretary Tuhin Kanta Pandey mentioned that LIC IPO is true sized, given the constraints available in the market. He added that LIC IPO won’t crowd out capital and financial provide available in the market.

    The IPO of the nation’s largest life insurer is only an offer-for-sale (OFS) route, the federal government is seeking to divest its 3.5 per cent stake within the state-run insurer by promoting 22.13 crore shares.

    More to observe

  • LIC fixes worth band at Rs 902-949 a share for Rs 21,000 cr IPO

    Insurance big LIC has mounted the value band at Rs 902-949 per share for the Rs 21,000 crore public provide that’s prone to open on May 4, sources stated.

    According to sources, Life Insurance Corporation (LIC) would provide a Rs 60 low cost for policyholders and Rs 40 for retail traders and workers.

    The problem is prone to open for subscription on May 4 and is anticipated to shut on May 9.

    The authorities had in February deliberate to promote 5 per cent stake or 31.6 crore shares of the insurance coverage behemoth and had filed draft papers with Sebi.

    However, the IPO plans confronted headwinds as a result of ongoing market volatility amid the Russia-Ukraine battle.

    Last week, the federal government determined to decrease the problem measurement to three.5 per cent.

  • LIC IPO more likely to open on May 4: Report

    The preliminary public providing of the nation’s largest insurer LIC will open on May 4 and shut on May 9, sources stated.

    The IPO, via which the federal government will promote a 3.5 per cent stake in state-owned Life Insurance Corporation (LIC), will fetch Rs 21,000 crore to the exchequer.

    The IPO values LIC at Rs 6 lakh crore.

    The authorities had in February deliberate to promote a 5 per cent stake or 31.6 crore shares within the insurance coverage behemoth and had filed draft papers with Sebi.

    However, the IPO plans confronted headwinds from the continued market volatility as a result of Russia-Ukraine conflict.

    Last week, the federal government determined to decrease the difficulty measurement to three.5 per cent.

    The authorities has additionally filed papers with Sebi searching for exemption from the 5 per cent stake sale norm, sources stated.

    As the Securities and Exchange Board of India (Sebi) norms, firms with valuation over Rs 1 lakh crore must promote 5 per cent stake in IPO.

    LIC’s embedded worth, which is a measure of the consolidated shareholders worth in an insurance coverage firm, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by worldwide actuarial agency Milliman Advisors.

    Based on investor suggestions, the market worth of government-owned LIC has been pegged at 1.1 occasions its embedded worth or Rs 6 lakh crore.

    LIC IPO would contribute a significant chunk to the budgeted disinvestment proceeds within the present fiscal. The authorities has pegged disinvestment receipts at Rs 65,000 crore within the present monetary yr, up from Rs 13,531 crore mopped up final fiscal.

  • Govt to promote 3.5% stake in LIC, IPO to fetch Rs 21,000 cr

    The authorities is prone to promote a 3.5 per cent stake in Life Insurance Corporation (LIC) by way of an preliminary public providing which can hit the markets within the first week of the subsequent month, an official stated.

    The concern measurement is anticipated to be value Rs 21,000 crore, valuing the nation’s largest insurer at Rs 6 lakh crore.

    LIC is prone to file the purple herring prospectus with market regulator Sebi by Wednesday.

    “LIC IPO is likely to come to the market in May first week. 3.5 per cent stake dilution, subject to regulatory approval,” an official stated.

    In February, LIC had filed draft papers with Sebi whereby it had stated that the federal government will promote 5 per cent stake or 31.6 crore shares within the state-run insurer.

    However, the IPO plans confronted headwinds because of the ongoing volatility in inventory markets because of the Russia-Ukraine battle, forcing the federal government to chop the problem measurement to three.5 per cent.

    Reservations for policyholders and workers, and reductions, concern dates and concern worth can be identified by Wednesday, the official added.

  • ‘LIC valuation down by half ahead of IPO’

    The Centre has reconciled to a a lot decrease valuation of round Rs 6 trillion for LIC forward of its preliminary public providing (IPO) although its price range estimate for FY22 indicated the state-run insurer was seen as value round twice that quantity by its proprietor.

    The valuation of the insurance coverage behemoth is “veering towards 1.1 times its embedded value (of Rs 5.4 trillion),” a senior official stated.

    “We are planning to file a final offer document next week if we are able to solve all these issues by the end of this week,” the official stated.

    The Centre would additionally method Sebi for reducing the IPO dimension to lower than 5 per cent, although it reckons a 15 per cent inexperienced shoe choice to be exercised if the problem is over-subscribed would take the sale to five per cent and even barely greater.

    The transfer follows suggestions from institutional traders, who cited how related entities had been valued globally, however can also be influenced by a sustained development of capital outflows following the warfare.

  • Govt to take name on LIC IPO timing this week

    The authorities is prone to take a name on the timing of LIC preliminary public providing inside this week, a senior official mentioned.

    The sale of 5 per cent stake or 31.6 crore shares within the nation’s largest insurer was initially deliberate for in March, however was postponed in view of the geopolitical rigidity.

    The authorities has time until May 12 to launch the IPO with out submitting contemporary papers with markets regulator Sebi.

    The official mentioned it could be a troublesome name to determine whether or not to go forward with the retail and home investor demand or to attend for geopolitical rigidity to ease and FIIs to return to market.

    “A decision on timing the IPO would be taken this week,” the official instructed PTI.

    LIC’s embedded worth, which is a measure of the consolidated shareholders’ worth in an insurance coverage firm, was pegged at about Rs 5.4 lakh crore as of September 30, 2021, by worldwide actuarial agency Milliman Advisors.

    There had been estimates made in sure quarters that LIC’s market valuation can be about 2-3 instances its embedded worth. The official mentioned that for a corporation of the magnitude of LIC, such excessive multiplier to embedded worth will not be right.

    The official additional mentioned the IPO worth must be mounted in a approach that on the itemizing day there may be an upside to the inventory and buyers get rewarded.

    “LIC is already a matured company and has seen business growth since its inception. The market valuation would have to be done keeping in mind its growth potential here-on,” the official added.

    If the IPO isn’t launched now then it must be deferred until August or September since contemporary papers with up to date quarterly outcomes and valuations must be filed with Sebi.

    If the federal government decides to go forward with the preliminary public providing by May 12 then the life insurer should file the purple herring prospectus with Sebi by subsequent week.

    The official additionally mentioned that below the current market situation the federal government is unlikely to dump greater than 5 per cent stake within the life insurance coverage behemoth. “When we are already facing headwinds, we cannot test waters with higher IPO size.” The finance ministry didn’t reply to the e-mail in search of feedback for the story.

    The authorities is planning to promote about 31.6 crore or 5 per cent stake within the life insurance coverage behemoth.

    LIC IPO would contribute a serious chunk to the budgeted disinvestment proceeds within the present fiscal yr. The authorities has pegged disinvestment receipts at Rs 65,000 crore for 2022-23, up from Rs 13,531 crore final fiscal yr.