Life Insurance Corporation of India (LIC) IPO Message Board (Page 6)

For retail investors and policy holders, LIC symbolises Loss Inflicting Company.

Article published by Mr Subhash Chandra Garg, Former Finance Secretary of India has given true share value of LIC between 450-500 :-

LIC | Will shares catch up with its true valuation?

https://www.moneycontrol.com/news/opinion/lic-will-shares-catch-up-with-its-true-valuation-8527451.html

Where was he when the IPO was opened... Could have saved tonnes of investors money.... All these Johnny's are popping up like gofers because the LTP fell... If this had given 5% profit, they would have started saying it's real value is 2000...

Don't really know who to trust in these troubled times...

Disc: have 70odd shares and intending to sell all, need advice from you guys what to do?

Completely agree with this article as the pe of LIC comes to it's peers line.

Even now some persons spreading ill against LIC. May be LIC has rejected their forged death claim. Hence so aggrieved.

@sssg i have only 1agenda and that is To expose people like you who are misleading others into thinking that lic is a good long term investment.
Also i am not B M surana. Instead of focusing on my identity you better focus on cutting your losses in LIC.

You are the only supporter of LIC who is still buying on dips

https://www.moneycontrol.com/news/business/markets/daily-voice-consider-buying-lic-only-if-the-insurers-metrics-improve-says-anil-rego-of-right-horizons-8551951.html

WITHOUT PREJUDICE

@ Arunarun sir,

Britannia holds 28 % market share in the segment it works followed by Parle 27%and ITC 11%. Smaller players innumerable in number enjoy 34%. If you add the market share of these three biggies i.e 66% equals more or less the market share of LIC in new business premium count (while in number of policy count it is 74.5%) In this current year lic has marginally gained in both count.
Now if anybody argues why lic should not have 100% market share as before or smaller players in the earlier mentioned segment claims for being bigger monkey than Britannia /Parle/Itc it is too ridiculous.
It is in hand of biggies enjoying better pricing power for being big on account of its trustworthiness reflected by its brand image.
"Cheap things are dear in the long run" a very old adage.

Beyond this , the premium of a LI company depends on certain factors depending on its experience as to mortality table used , expected interest rate,expenditure and certain other factors at the time of launching of the plan.
Therefore, a plan launched in the year say in 1990 or 2000 or 2010 or 2015 will differ from a plan launched now as the set up is completely different as a plan launched today will try to accommodate estimation on the basis of today's findings.
I will conclude without explanation that if any conventional policy launched today , it will come up with higher rate of premium.
% of death claim settlement is a less dependable data and as a share holder I shall prefer a company with lesser % payment for the sake of argument but not for investment in any other than lic.

Disc: I have everlasting non conformity with LI business model (except lic for a specific reason beyond business.)

Thanking you

Dear Mr. Sarkar,
Most insurance companies run few ongoing plans. They dont keep changing plans every year.
Sorry to correct you on premiums. Today with better mortality experience the premium rate will be down for life policies (as lesser claims would need to be paid) and higher for annuity policy (as policy holder will live longer) (reverse of each other)

what i found funny was lic has a retail and policyholder discount ,, the development officer and agent are those that are actually making a great income ,, why no quota for them ?
one will have to wait to see when the Large institutions ie foreign govt
state and pension funds and hedge funds start investing .. till then lic will slowly fall in a poor market like this

Development officers are employees. Agents were free to become policy holders. Between the act amendment and record date there was enough gap

The motive of any seller is to get the best price.. at a given time for their product. this is what the fm and disinvestment dept did, and kudos to them for that, As expected LIC share has started falling and i expect it will continue to fall without govt or psu intervention .. wait for the price to fall by upto 33 % of book bldg price and then see if it falls further. In an IPO the biggest idiot is always the small investor with his greedy expectation to make money vide the flip, when he faces a loss he becomes long term or medium term investor.. the govt may suddenly intervene and push up price so beware while shorting .

Comparison of different Insurance companies.
Sr Company Currt pr pe issue price
1 Gen Insu 114.15 13.62 912
2 new in Ass 104 17.69 800
3 HDFC Life 550.75 96.36 290
4 SBI Life 1045 69.41 700
5 ICICI PRU 489 92.65 334
6 LIC 201 949
Now after Listing LIC the P. E. of LIC reduced to 180 from 201 and the downtrends continues to follow till....... as no buyers are available in the market, everyone is ready to offload it.

How can you even compare a general insurance company with life insurance company
2ndly You need to adjust bonus and/or split from IPO prices. Which you have not done

@ arunARUN
Don't you agree with any of the grounds given by Mr Garg in his detailed article?
I would love to know the price tag assumed by you and the basis for the same.
It will immensely help me to decide whether to hold IPO allotment or exit at present loss because it has still long way to go if I follow the theory given by former finance secretary.

Mr. Garg has not written any worth while point other than a sensational target.
I did not buy in IPO as i was able to sense high hope on listing which did not correspond to subscription numbers. LIC has failed to highlight its strength to retail investors.
On listing day i bought at 875 at 10 AM and sold out at 906
Do see trading opportunity for a month. So bought at 850 and 825

https://www.news18.com/news/india/lic-agent-held-for-making-fake-death-claims-amounting-to-rs-1-81-crore-in-odisha-4297442.html

LIC ipo was issued at 201 multiplication and I have repeatedly written that this valuations is not appropriate for LIC as it's a white elephant and govt have marketed well to sell this ipo. Now the P. E. of LIC reduced to 180 from 201 and still very high scope to reach upto 125-140 multiplication.

true

@abc xyz
Which theory books says right ratio of PE for insurance companies?

Anyone got RaGa's number? Call him up and tell him that he can start purchasing now along with rest of the gang. Loot available at "Less than throw away price." Many moneybags in the gang. NanDan, ChiDu, AbhiSheik, Kapil'sBall, DiKS are well know, but there are several more in the gang with very deep pockets. Just 4-5 of them are enough. Each one can place orders for 2000 to 3000 crores. Stock will turn into rocket and can reach fair valuation.

Garbage/Junk Scrap are always at throw away price 😂😂😂
Except few defence PSUs(i.e BEL,BDL,MDL etc), IRCTC (protected monopoly) all are worthy of throw away price.

@jetha lal
What is your view of GNFC, GSFC, GACL, IRFC, RVNL, IRCON , PTC India etc? They are also public sector

This embedded value story does not make any sense. EPS is much more reliable because ability of the company to give dividend depends on this EPS only. EV is not realizable and it is of very long duration.
Discl: Not applied in IPO and no intention to buy

Embedded value concept is old and reliable way of valuing insurance company ..... India's First private insurance company's ipo was also valued on the basis of embedded value ..all experts aren't fool... Let the weak hands retail and some hni get out of the lic and then it should stabilise around 800.. as per eps value of lic is 300 only....but as per embedded value it's cheap even at 1100

@gundu anna
Have you ever invested in loss making company as price earning becomes infinite. Yes eps will tell how much dividend you can get but investors should not purchase insurance company share to get dividend. please buy IRFC or RVNL to get dividend

Keep shorting... paisa ban rha hai......now I'm in profit even though my lic holding is in negative. Keep shorting till 800...

@ Monster Zero
Are you sure it will take support at 800?
It has taken very little time (only 4 days) to come down from 900 to 825.

Hunch was right ..800 ka reversal..😅... Let's see if it sustains upward movement. Most people will try to exit. 880 resistance.

LIC se jite ji benefit lena mumkin nahin hai. Dega benefit lakin marne ke baad hi.

What r u waiting for then ?

@ipo share what are u waiting for then

@ JETHALAL
I am surprised with your evaluation. Yesterday you said that "Modiji is also an excellent orator " Today you are saying " qualified and intellectual "
How can I be harsh on you? But I am dissatisfied with your estimation of " Coldburger " . How do you know that Coldburger can't write big.You can't, can't.
You have given a glance of it yesterday why you can't.
People are engaged with their work and you are spending your entire time here and playing after the role of "MANTHARA".
What is that to you who sells/buys/trades ?
Who told you that insurance company has no enterprise value ?
Don't try to enter any serious matter. Your capability is spamming which you are doing well .

@ Coldburger
I have full respect for your decision as it is taken in individual capacity. It is better to dispose of than to be bearish in day time and bullish at night. Others may differ as per their capacity. Such is the process and any altercation leads to a complication rather than a universal solution.
Thank you

Mr. Sarkar
The two statements regarding "Modi ji" and "Qualified & Intellectual" were sarcasm and satire which you unable to understand.
If you didn't understand then let me elaborate for you.
Modi ji is "government/sarkar" and he too speaks very well like you so these statements were made irrespective of how accurate and relevant things he talks.
You said previously that people who can't write 15 lines are not eligible to talk to you so let me tell you that we prefer Quality matters over Quantity.
Most of people here can write thesis here but we all choose to write as per fundamental and dynamic of market rather than sugar coating a shit company.
Market has shown mirror to your long essay on "sandalwood tree".

It's my time and I can better decide how I want to utilise my time and I believe people are benefiting from my post and data and analysis.

Unfortunately I have to make a person understand satire.
This is my full and final reply to you on LIC.
Don't expect further reply.
God bless you 🙏🙏🙏

Any healthy discussion, arguments, story telling, essay writing is fine as long as no invest is made..

But beware while investing your money based on unsolicited tips through Whatsapp, Telegram, SMS,Calls, SocialMedia...

Take informed decision before investing any money.. not based not recommendations from a public forum.. nobody knows if anyone is qualified and experienced enough to do so...who so ever may be.. guru.. expert, etc..

Listing say pahlay hi bool diya tha PayTM hi tab jiski akal may nahi aya tha ab a raha hi.

At this price point enterprise value of LIC has gone negative even as per calculation of LIC itself which means if anyone wants to buy this company now he will get some amount alongwith.
Actually it is a widow's property. The widow does not get the worthy price. But the persons who buy from the said widow or further distressed hand know the value of it and realise it in due time.


Wait and watch.

I believe LICI will get worthy investors at worthy price let it depreciate up to 650-700 level then it might become attractive. For short term investors it is no for positional it is sure shot no.
With more public exposure (OFS) it may reach a point where it becomes valuable property and wealth creator due to improved efficiency and transparency and private type work culture!

@Aachar !
Tob to tum baach giya !
Varna kha liya goya hota !

Pre-ipo
L -> Loss
I - >I
C -> Coming.

Post-Ipo
L -> Loss
I -> Is
C ->Confirmed

Exited LIC today at 40k loss..It is not performing even in the +3% market, can't keep hopes high..

Made 7.5k loss, exited on listed day

Thank you jethalal ji, cold burg, antarix for ur kind words..Going to get almost 600+ shares in aether..this just might recover my losses in LIC..or widen it😀