Tag: lic share price

Govt nudges LIC to tweak product technique for higher investor return

The authorities is nudging LIC to tweak its product technique to maximise profitability in a bid to assist the nation’s largest insurer realise its full progress potential and yield higher returns for traders, an official mentioned.

Life Insurance Corporation (LIC) has been buying and selling beneath the difficulty worth of Rs 949 a share ever because it acquired listed on inventory exchanges on May 17. It listed at Rs 872 apiece on NSE.

On Tuesday, the scrip settled at Rs 595.50, down 0.72 per cent over the earlier shut.

Foreign brokerages, nevertheless, stay bullish on LIC setting a better goal worth over the following 12 months as they really feel that the insurer has good medium-term market potential, negligible excessive threat property and sturdy core working Return on Embedded Value (ROEV).

Citi in a analysis report dated October 14 set a goal worth of Rs 1,000 for LIC scrip, saying LIC is ‘positioned better than mature global players’.

The finance ministry in its efficiency evaluation has been sensitising the LIC administration in regards to the steps that could possibly be taken to higher investor wealth and give attention to non-participating merchandise or time period plans to enhance profitability.

“With the listing of LIC, the process of modernisation of the over 65-year-old institution has started. We are working with the management so that they modernise their product offering and lower dividend payout to policyholders,” the official informed PTI.

In non-participating insurance coverage merchandise, insurers don’t must share their revenue in type of dividend with policyholders, whereas in case of taking part or par merchandise, the insurer shares dividend with policyholders.

“The younger generation is more inclined to term plan. LIC will have to rework their strategy and decide what should be done so that their asset under management is utilised to its full potential,” the official added.

LIC’s standalone first-quarter internet revenue surged to Rs 682.88 crore from Rs 2.94 crore within the year-ago interval.

LIC reported an embedded worth (EV) of Rs 5,41,492 crore as of March 2022, as in comparison with Rs 95,605 crore in March 2021 and Rs 5,39,686 crore in September 2021.

Its preliminary public providing (IPO) got here in a worth band of Rs 902-949 a share. The situation fetched about Rs 21,000 crore to the exchequer.

October 26, 2022
LIC shares tank by 5.85% after anchor lock-in interval ends

Shares of Life Insurance Corporation (LIC), which got here out with a Rs 21,000 crore IPO just lately, fell by 5.85 per cent to Rs 668.20 on the inventory exchanges on Monday as anchor traders unloaded the shares after the lock-in interval ended.

With this, the inventory has fallen 29.58 per cent from the IPO supply worth of Rs 949, indicating that traders have misplaced practically one third of their funding within the LIC IPO as on Monday. The market capitalisation of the inventory has additionally fallen to Rs 4.22 lakh crore.

LIC mobilised Rs 5,627 crore from anchor traders. Domestic mutual funds invested Rs 4,002.27 crore, accounting for 71.12 per cent of the whole anchor ebook portion of the LIC IPO. SBI Mutual Fund invested Rs 1,006.89 crore, turning into the biggest investor within the anchor ebook quota.

Four fairness schemes of SBI MF invested the quantity with SBI Equity Hybrid Fund alone placing Rs 518.99 crore, in keeping with knowledge out there from exchanges. Seven schemes of ICICI Prudential Mutual Fund invested Rs 725 crore within the LIC IPO. HDFC Mutual Fund was allotted shares price Rs 525 crore. Aditya Birla Sun Life MF, Axis Mutual Fund, Kotak MF, L&T MF and Nippon India MF, amongst others, additionally invested within the anchor portion.

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ICICI Prudential Life Insurance was allotted Rs 99.99 crore price shares, SBI Life Insurance Rs 99.99 crore and Kotak Mahindra Life Insurance Rs 50 crore. However, not one of the public sector insurance coverage firms determine within the traders checklist.

An anchor investor in an IPO is a certified institutional purchaser (QIB) like a overseas portfolio investor or mutual fund or insurance coverage firm which invests earlier than the IPO is made out there to the general public as per Sebi laws. As preliminary traders, they make the IPO course of extra enticing for traders and instill confidence in them. Anchor traders additionally support in worth discovery of the IPO.

The company provided a reduction of Rs 60 for policyholders and Rs 45 for retail traders and staff. The dimension of the IPO was lower 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.

June 14, 2022
LIC inventory tanks over 25% from difficulty value, traders lose round Rs 1.51 lakh crore publish itemizing

The shares of life insurance coverage sector behemoth Life Insurance Corporation of India (LIC) continued its bear momentum for the ninth successive session and fell to a recent all-time low in the course of the intraday commerce Friday.

The LIC inventory hit a recent document low of Rs 708.05 on the NSE and Rs 708.80 on the BSE within the intraday session on Friday. Following its consecutive declines over the previous 9 periods, the script has now fallen over 25 per cent from its difficulty value of Rs 949 apiece. Eventually, it ended at Rs 709.70, down 1.70 per cent from its earlier shut on the BSE and at Rs 710.20, down 1.59 per cent on the NSE.

The firm’s market capitalisation has fallen from Rs 6 lakh crore to Rs 4.49 lakh crore (Rs 4,48,885.09 crore) on the finish of commerce on Friday, information on the BSE confirmed. This implies that LIC shareholders have misplaced over Rs 1.51 lakh crore in lower than a month of its itemizing.

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LIC obtained listed on May 17 on the inventory exchanges, making a lacklustre debut on Dalal Street. It listed at over an 8 per cent low cost from its difficulty value regardless of a profitable Rs 21,000 crore preliminary public providing (IPO) which obtained subscribed 2.95 occasions.

Speaking on the autumn in LIC inventory, Ravi Singh, vice chairman and head of analysis at Share India Securities instructed indianexpress.com that he anticipates the inventory to fall additional as much as Rs 650 apiece degree. He advises traders to exit their earlier positions and await the turnaround of the feelings.

“The high-risk appetite investors may hold their positions. It is expected that in the long run, the business metrics of LIC will improve steadily. Investment done at lower levels will deliver good returns in long term,” Singh stated.

Vishal Wagh, head of analysis at Bonanza Portfolio defined that the insurance coverage big has been dealing with stiff competitors from personal gamers and has been slowly dropping market share. Speaking with indianexpress.com, Wagh stated that LIC’s premium costs are barely greater than the competitors which impacts consumer conduct.

He additional identified the low penetration throughout the nation and stated that whereas there may be immense potential for development and LIC does have an even bigger market share, its on-line presence throughout insurance coverage aggregators wants to extend considerably to compete with the personal gamers.

Speaking concerning the inventory, Wagh stated that he believes LIC shares ought to backside out someplace between Rs 650-700 and keep rangebound for a while.

Santosh Meena, head of analysis at Swastika Investmart in a notice stated, “We believe India’s highly underserved life insurance market is still in its infancy and is well-positioned to capitalise on the enormous growth potential. The company has plans to address concerns like low VNB margins, loss in market share, high reliance on agency channel, etc. Additionally, the company’s issue was priced at a Price to Embedded Value of 1.1x, which was already at a discount compared to its global as well as Indian peers, and the current dip provides further valuation comfort. Another point we’d like to make is that investors should be aware that insurance is a long-term business; therefore wealth development and compounding occur only over time.”

June 10, 2022
LIC shares fall to a contemporary all-time low; skid over 20% from their difficulty value

Shares of insurance coverage sector big Life Insurance Corporation of India (LIC) continued their downward momentum and hit a contemporary all-time low on through the intraday commerce on Tuesday, hitting Rs 752.30 on the NSE and Rs 752.15 on the BSE through the late afternoon offers.

After slipping beneath the market capitalisation of Rs 5 lakh crore on Monday, the m-cap stood at Rs 4,76,904.83 crore at 3 pm Tuesday, in response to the BSE information.

Over 32.64 lakh shares of the insurance coverage big had been traded thus far on NSE whereas over 4.38 lakh shares exchanged fingers on the BSE, information from the respective exchanges confirmed.

Following its consecutive declines over the previous six classes, the scrip has now fallen over 20 per cent from its difficulty value.

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On May 17, LIC made its lacklustre debut on inventory exchanges, itemizing at over an 8 per cent low cost from its difficulty value of Rs 949 apiece after a profitable Rs 21,000 crore preliminary public providing (IPO) which obtained subscribed 2.95 occasions.

Speaking on the LIC inventory, Santosh Meena, head of analysis at Swastika Investmart famous, “The issue was priced at a price to the embedded value of 1.1x, which is a discount compared to its domestic as well as global peers. This valuation discounts concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins and short term persistency ratios. However, we believe India’s highly underserved life insurance market is still in its infancy and is well-positioned to capitalize on the enormous growth potential. LIC has a number of competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network. So, investors with a long-term view can buy this stock at CMP and follow a buy on dip strategy.”

June 7, 2022
FY22: LIC clocks document Rs 42K-cr revenue from market

Life Insurance Corp of India (LIC), the biggest capital market participant, has made a document revenue of Rs 42,000 crore from fairness gross sales in FY 2021-22, greater by 16.66 per cent from Rs 36,000 crore within the yr in the past interval.

The rise in revenue got here regardless of the inventory market displaying large volatility through the monetary yr. LIC has been a contrarian participant available in the market.

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The company which introduced its outcomes on Monday noticed its standalone internet revenue declining by 18 per cent to Rs 2,371.55 crore within the quarter ended March 2022, in comparison with Rs 2,893.48 crore within the year-ago interval.

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However, clarifying on the drop of internet earnings, Raj Kumar, MD, LIC, mentioned,” Earlier the earnings had been declared on the finish of the yr solely. So that’s why the quarterly numbers should not comparable. This yr’s (FY22) This fall quantity isn’t comparable with the This fall of final yr (FY21) as a result of it was for the complete yr (FY21).” From September 2022 onwards, the comparable information factors will probably be obtainable, he mentioned.

Kumar mentioned the company’s product combine is dominated by the collaborating (par) enterprise however going additional its driver of progress will probably be non-participating (non-par) enterprise. “We have already decided that in future we will be launching only non-par products. With the product mix changing towards the non-par side in the future at a greater pace than the par side, the value of new business will be created. That is the strategy we are adopting,” he mentioned.

A collaborating (par) life insurance coverage coverage permits policyholders to take part within the earnings of a life insurance coverage firm, whereas a non-participating (non-par) plan doesn’t supply any dividend payouts.

“The exercise of determination of Indian embedded value as on March 31, 2022 is under progress and is expected to be completed by June 30, 2022. As soon as the exercise is completed, LIC will make the required public disclosures of the same,” Kumar mentioned.

“It is a long exercise (determination of Indian EV). We are implementing a new IT solution for calculation of Indian embedded value and we need to cross-check all the data,” he informed reporters on Tuesday.

The embedded worth is a measure of the consolidated worth of shareholders’ curiosity within the life insurance coverage enterprise. It represents the value of shareholders’ pursuits within the earnings distributable from the property allotted to the enterprise after ample allowance for the mixture dangers within the enterprise. LIC’s embedded worth was pegged at about Rs 5.4 lakh crore as on September 30, 2021 by worldwide actuarial agency Milliman Advisors

Total claims paid through the quarter elevated 19% yr on yr to Rs 1.21 lakh crore. Kumar mentioned. The greater claims had been a residual affect of the Covid pandemic and in addition as a result of maturity of 4 excessive worth merchandise for which funds had been made through the quarter, LIC mentioned.

LIC has a Rs 7400 crore reserve fund to care for Covid claims. “The worst of the pandemic is behind us,” he mentioned.

“There was some residual impact of Covid and covid related claims. Overall Covid impacted the company last fiscal and one hopes that we do not see any more waves. Four of our products where the sum assured of each policy was Rs 5 lakhs also matured adding to the higher claims,” he mentioned.

“We have 285 products which need to be modelled into a new system. We have to check the consistency of the output for each of the products, and it is taking time. We don’t want to rush into any number which can be questioned tomorrow. We want to be absolutely sure and hence we are taking a little more time,” he mentioned.

May 31, 2022
LIC to declare monetary outcomes for FY22 subsequent week, think about fee of dividend

The board of administrators of the state-owned Life Insurance Corporation of India (LIC) is scheduled to fulfill on the finish of this month to declare the monetary outcomes for the fiscal yr ended March 2022.

It is knowledgeable {that a} assembly of the Board of Directors of the Corporation is scheduled to be held on May 30, 2022, LIC mentioned in a regulatory submitting on Tuesday.

The insurance coverage behemoth, which was listed on the bourses earlier this month on May 17, mentioned the board will think about and approve the audited monetary outcomes (standalone and consolidated) for the quarter and yr ended March 31, 2022.

The assembly will even think about fee of dividend, if any, LIC mentioned.

The a lot sought-after IPO (preliminary public supply) of LIC made its debut at round 8 per cent lower than its situation value, in a uneven market situation primarily due to the geopolitical tensions arising out of the Russia-Ukraine struggle.

LIC shares had been listed 8.11 per cent low cost at Rs 872 per share on NSE on May 17, as in opposition to its situation value of Rs 949 per share.

The LIC scrip was buying and selling 1.12 per cent up at Rs 826 apiece on BSE.

May 26, 2022
Weak market debut for LIC, lists at 8% low cost

Disappointing traders on itemizing day, shares of Life Insurance Corporation of India (LIC), which mobilised round Rs 20,557 crore by way of the nation’s largest preliminary public providing (IPO) just lately, plunged practically 8 per cent in its market debut on Tuesday.

LIC, India’s largest insurer and home monetary establishment, began buying and selling at Rs 867.20 — at a reduction of 8.62 per cent — on the BSE as towards the problem worth of Rs 949 per share. The share closed the day at Rs 875.45, a reduction of seven.75 per cent, even because the risky inventory markets staged a rally, with the Sensex leaping practically 1,345 factors, or 2.54 per cent.

LIC now has a market worth of round Rs 5.53 lakh crore and is India’s fifth largest firm by way of market capitalisation after Reliance Industries, TCS, HDFC Bank and Infosys.

“We were not expecting it to pick up as the markets were jittery… expect it to pick up. I am sure a lot of policy-holders who had missed out in the IPO will pick up LIC from the market now. I don’t see why it should be tepid for too long,” LIC Chairman M R Kumar stated whereas talking to reporters after the itemizing ceremony.

While LIC’s IPO had acquired good response from policy-holders, overseas traders weren’t very enthusiastic in regards to the provide. “That has been due to global sentiment which has really tested Indian investors. The way to look at it is, without FPIs, could any other issue have managed this? We saw six times (subscription) from policy-holders. That is huge,” Kumar stated.

According to the BSE, the entire amount traded stood at 27.55 lakh shares with a supply amount proportion of 47.05 per cent. Total amount traded on the NSE stood at 487.92 lakh shares with a supply amount proportion of 39.18 per cent. Total turnover (BSE and NSE) on the primary day stood at Rs 4,591.10 crore.

LIC policy-holders and retail traders bought the shares at a worth of Rs 889 and Rs 904 per share respectively. The IPO closed on May 9 and shares had been allotted to bidders on May 12. The authorities offered over 22.13 crore shares or 3.5 per cent stake in LIC by way of the IPO at a worth band of Rs 902-949 per share.

The retail traders and eligible staff of LIC had been supplied a reduction of Rs 45 per fairness share over the problem worth, whereas policy-holders bought a reduction of Rs 60 per share.

The share sale fetched the federal government round Rs 20,557 crore. The provide, which closed with practically 3 times subscription, was predominately lapped up by retail and institutional patrons, however overseas investor participation remained muted.

Last month, LIC had lowered its IPO measurement to three.5 per cent from 5 per cent determined earlier because of the prevailing market situations. Even after the lowered measurement of over Rs 20,557 crore, LIC IPO is the largest IPO ever within the nation.

May 17, 2022
Weak LIC debut resulting from unfavourable mkt situations: DIPAM

Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey on Tuesday stated the weak itemizing debut of the nation’s largest insurer Life Insurance Corporation (LIC) on the bourses was resulting from unpredictable market situations.

Investors ought to maintain on to the inventory for long-term worth, he stated. “Nobody can predict the market. We have been saying that it should not be held for a particular day but for more than a day,” Pandey instructed reporters after the itemizing of shares.

Domestic inventory markets had plunged over 8 per cent since January this yr because of the Russia-Ukraine battle, US Fed price hike, rising inflation and FPI outflows.

Pandey stated there was some safety for retail traders and policyholders who received the shares at a reduced worth. On the IPO, he stated it was right-sized, contemplating the capital market setting, with the target of not crowding out the capital provide.

He stated the IPO obtained 73 lakh investor functions from all classes aside from anchor traders. It obtained 10.85 lakh functions from first-time traders, of which, greater than 7 lakh received allotment. As a lot as 46 per cent of the traders had been from the western a part of the nation, 44 per cent from north and south, 9 per cent from east and north-east noticed one per cent participation, he stated.

The IPO was the third largest IPO globally within the yr until date, he stated, including that the mixture IPO in Europe was lower than $3 billion throughout this yr until date.

LIC Chairman M R Kumar stated the response for the shares within the secondary market goes to be larger which can pull the costs up. “We were not expecting it to pick up as the markets were jittery… expect it to pick up. I am sure a lot of policyholders who had missed out in the IPO will pick up LIC from the market now. I don’t see why it should be tepid for too long,” Kumar stated on the itemizing day share worth motion.

Kumar stated the insurer has already launched a few non-participating and assure merchandise within the final quarter of FY22 and now it plans to aggressively promote these merchandise. The insurer may take a look at launching some new merchandise.

“We would like to push the plans that guarantee returns and give good profitability margins. Participatory products have always been our strength and we will work on that strength and also get into other segments,” he stated.

LIC’s market share is 63 per cent and expects it to settle on the identical degree. “We are not going to lose it any more. I think there is enough room for growth,” Kumar stated.

While LIC’s IPO had obtained good response from policyholders, overseas traders weren’t very enthusiastic in regards to the provide. “That has been due to global sentiment which has really tested Indian investors. The way to look at it is, without FPIs, could any other issue have managed this? We saw six times (subscription) from policyholders… that is huge,” Kumar stated.

Bids from overseas portfolio traders (FPIs) had been to the tune of Rs 2,291 crore in the primary e-book they usually additionally invested Rs 555 crore within the anchor e-book, Pandey stated.

On April 27, addressing the pre-launch media convention, Pandey defended the valuation, saying, “this is a fair and attractive valuation. Valuation is a discovery process. We want to champion LIC as a long-term value creator in the equity markets.”

LIC had provided a reduction of Rs 60 for policyholders and Rs 45 for retail traders and staff.

The authorities was earlier eager on launching the LIC IPO in March 2022 to satisfy its revised disinvestment goal for the present fiscal. The challenge measurement was delayed and lower from the sooner proposed Rs 65,000 crore after Russia attacked Ukraine and US Federal and overseas traders began pulling out funds within the wake of price hike plans of the US Federal Reserve market, sending monetary markets right into a tizzy.

May 17, 2022