Dear friends,
One and all including media claiming for LIC ipo being the biggest IPO in the history of our country. They have made us forgetting a commonly used term for comparing two financial transactions taking place at different points of time. Yes, I am speaking of " Time value of money".
If you take into consideration the time value of money at logical rate of interest , LIC ipo will be the fourt highest.
1.Coal India ipo , size 15199 cr , issued in Oct '2010 , present value about 35000 cr,
Qib 25 times, Nii 25 times, retail 2.3 times , overall 15 times , issue price 245, listing at 287 (+17%), day high 345 (41%) Nifty 6000 , Then LIC is 60 % of it in real term.
Discl : I was a subscriber and exited with 35 % profit.
2. Reliance power ipo : size 11563 cr , issued Jan 08 , present value about 29500 cr
Qib 82 times, Nii 190 times, retail 15 times, overall 73 times, issue price 281, listing 342 (+21.5%) Nifty 5700 , Then LIC is 71 % of it in real term.
3.DLF ipo: size 9187 , issued June '07, present value about 25000cr,
Qib 5, nii 1, retail 1, overall 3.5 , issue price 525 , listing 582 (+10.8) , day high 583,
Nifty 4300. Then LIC is 84% of it in real term.
The following points may be noted :-
A) At that time number of total dmat was less tha 2 cr, now 8.8 cr
B) At that time nifty range 4300-6000 now 17000 -18000
C) LIC have 6.8 cr PAN registration.
D) 105000 cr employee including 21000 Dev officers, 13.5 lac agents, about 30 cr policy holder.
E) Threat of War (appears to be digested ) alongs with other hang overs.
F) If LIC has ability of coal India , translates to overall 25 times subs as per calculation taken.Not to speak of Reliance Power.
G) @ AhireR ' Nii subs stands at 41. So he may be mistakingly correct.
Sorry, if it is found irrelevant.
For @ AhireR and M Ravi sir
Thanking you.