For Lic ipo all of a sudden every body talking about embedded value....
What's going on....?
487.1. PSR| Link| Bookmark|
May 2, 2022 1:18:30 PM
IPO Guru (1200+ Posts, 700+ Likes)
When it is coming to LIC, it is a major shareholder of number of Companies, whose dividend yield is 2 to 3 percent w.r.t. market value. Hence, P.E. cannot be sole cretaria for valuation.
Hence, embedded value has become more prominent in respect of LIC.
I read FAQ again there is mentioned only Resident Indian can Apply however NRI and other Resident can apply only under Policyholder and Retail category but the total Bid amount should not exceed Rs.2Lac
NRI policyholders and other policyholders who do not reside in India are not eligible to apply for the Policyholder Reservation Portion.
As per the FAQ section in the LIC DRHP, “Whether NRI policyholders or other policyholders residing out of India can apply in the Offer? No, only resident Indians can apply.”
ONE LIC POLICY OF MY 8 YEAR CHILD IS ACTIVE . ITS PREMIUM IS PAID BY MY WIFE FROM LAST 5 YEARS. I HAVE UPDATED HER (MOTHER'S) PAN IN THIS POLICY. WHEN WE CHECK PAN LINK STATUS WITH POLICY WITH HIS MOTHER'S DATE OF BIRTH ITS "INVALID" BUT ON FEEDING CHILDS DOB ITS SHOWING"LINKED". NOW NAME & DOB IS OF MY CHILD & PAN IS OF HIS MOTHER LINKED. MY QUESTION : CAN MY WIFE APPLY IN POLICY HOLDER QUOTA IN ADDITION TO NORMAL RETAIL QUOTA.
In case of a LI policy on the life of a minor , there is a proposer at the time of taking the policy who remains to be the owner of the policy during the minority of the child. So if your wife is proposer and her PAN is linked, nothing to worry, she is eligible.
What is the view of the neurologist about this IPO 1 . Month of declaration : April means 4 2. Starting date : 4th 3. Year 22 means 4 4. Date 4/5/22 means 31 means 4 5. Size 3.5% equala 4 6. Total share 22 cr (round of) means 4 7.price 949 means 22 means 4 8. retail price 904 means 13 means 4 9. Listing 17/5 means 4 10. Tithi : 4th of moon
KYA CHAR CHAND LAGA DEGA ? NA KI CHAR DIN KA CHANDNI ? NA KI CHAR CHAR ?
Nice observations, AsokeDa. Aapni bhalo toh?? Now what should have been the 4most and in 4front, is that the issue is opening on my BD. Aar kee chaee aapna ke...?
@ M Ravi sir, I have never participated in NII segment for the reason risk/ reward not supported by investment amount and the related probability . I used to apply in multiple retail a/c on the contrary. Now on I shall also apply in NII as the episode has got some logical shape wef 1st May. For this LIC ipo(which is as per old norm no body knows why) I want to grab as much possible though the proportional norm will make it difficult. Thank you
@MRavi sir, Thanks for starting this thread. I will go as Policyholder and HNI. In HNI, around 3150 cr is allocated, so my guess subscription will be around 5X. Anything more than 5X, I will apply in FF upto 350 lots.
@MRavi sir, Just to add, initially I applied Ruchi soya 4 lots in Retail and I have withdrawn by seeing lot of negativity from some members. I don't want to repeat the same mistake for LIC. Also, I see some comparison with Paytm and other Govt PSUs which I think is unfair comparison.
I'm not an expert and these are solely my views based on my limited knowledge.
@AhireR, I was going through the discussions in this LIC page. There were so many positive and counter arguments with justifications. Many reputed members did so much research, provided the data with their comments.
For the time being, I want receive 20 - 30 L worth shares. I will apply the lots accordingly. your estimation HNI subscription seems little high. lets see other experts input here.
With all buzz around (US recession, rate hike...etc), very huge participation from FII's are expected. My initial estimate for LIC listing well above 1000. Sell off on listing day will be bought by institutions and NII's (If NII subscribed 10 X or so)
@Asoke sarkar, What I read from this page (I think from @KDKing), Govt received this exception of old NII rules from SEBI. It was a great idea from Govt as many NII will jump in here to get allocated maximum possible. All the best for your NII entry.
@Suneel Padavala, No worries. there is always tomorrow and any lesson learnt is also an asset. Agree that we cant compare Paytm and LIC or any other big IPO's. Govt will ensure that this is going to be big success as some one told in this page earlier. There are so many reasons for Govt to get this issue a big success (not just subscription alone but after listing as well).
I am confident, as this giant who has rescued many firms in the past (also participated in Indian stock market growth by investing in so many stocks), Govt & genuine investors will make this LIC issue as a super hit.
Thanks
478.9. Bhav| Link| Bookmark|
May 1, 2022 9:59:33 PM
Top Contributor (400+ Posts, 100+ Likes)
@Abhisir, Thanks for your respect. My strategy may not suit yours as I wont book profit during listing day of an IPO. This is being LIC, I will keep this for long term, no other thoughts.
You may kindly review yourself or with experts depending on your risk taking abilities.
Thanks
478.13. Bhav| Link| Bookmark|
May 2, 2022 6:53:11 AM
Top Contributor (400+ Posts, 100+ Likes)
@M.RAVI,
I can understand that old rule may be apply, but from where you got this information? Is it confirmed?
@ M Ravi sir, Thanks sir for ur reply.. You are always respected for me sir . I am silent observer of this forum and specially of ur msg.. always serious and meaningful discussion occurred here.. very beneficial for me and others new and small investors.. Thanks you sir
After reading few messages posted by many experts, I have understood that BoA in HNI, Shareholder and Policy Holder categories will be Proportionate, i.e as old HNI rules...
If SEBI has made new rules for betterment of system and benefit of investors, or whatever their logic was, why SEBI changed rules for this IPO. Why did GOI sought special approval for old rules.
I would be benefited by old rules as that helps in calculating allotment chances but still would have preferred new rules for this IPO. If some thing has been changed, SEBI/GOI should stick to it, irrespective of size...
Avenue, SEBI has specifically exempted LIC IPO from new allotment rules for hni, due to more than 10000/ crore issue. Also allowed 3.5% stake sale instead of 5%. In present scenario government was in pressure to reduce size and premium.
@Nand Kishor.. So LIC, GOI and even SEBI (since they have approved) think that new rules will not support large sized IPOs, hence special permission was sought and granted. Reducing size and price is offcourse LIC purview.
Any way leave it, What is more interesting that on this weekend, we will be busy in analysing allotments of recent 4-5 IPOs as per NEW rules and also LIC IPO applications as per OLD Rules :)
@mravi sir Thanks for ur inputs.. @asoke ji I think u meant 35-40 times could become reality..I don't think it's possible..To get that much subscription, HNI needs 1-1.1 lakh crore of inflow..
478.20. Safe Bet| Link| Bookmark|
May 2, 2022 6:15:49 PM
Top Contributor (500+ Posts, 100+ Likes)
zomato hni collection was arnd 50,000 Cr. NII resvn in LIC is 5% ( 1100 Cr) Incase similar collection comes in LIC we can expect O/S of about 50 times. Is this maths OK? So the HNI category is not going to be a cake walk I feel.
478.21. Safe Bet| Link| Bookmark|
May 2, 2022 6:35:31 PM
Top Contributor (500+ Posts, 100+ Likes)
Sorry guys 🙌H my mistake... HNI is 15 % & not 5% . So expect a o/s of abt 20X at zomato level collections
@ AhireR LIC ipo is the most mysterious ipo of this century. If I endorse what you say right now people will ridicule me. So let me end with this statement that the subs will be much higer than one can even think of and may prove you mistakingly correct. Thank you
@Avenue, Lets take old HNI rules happily for LIC. Its very important as this will give full access of large chunks for HNI's. (yes, we will be busy in analyzing allotments of recent 4-5 IPOs...😂😂😂)
478.26. sdz| Link| Bookmark|
May 2, 2022 10:06:46 PM
IPO Guru (1000+ Posts, 500+ Likes)
I think 2 Biggest negatives in the new HNI rules are 1. Non availability of subscription numbers of sHNI and bHNI separately; and 2. App-wise lottery system in bHNI category which will reduce big HNIs interest in the IPO, and also it’ll make mini HNIs to take higher risk if big IPOs dont get subscribed well.
@sdz, Welcome back. Just for your information, old HNI rules are applicable here
@CAAnil Not sure about new RBI funding rules applicable for LIC (hope some funding HNI experts will answer)
Thanks
478.28. sdz| Link| Bookmark|
May 2, 2022 10:49:28 PM
IPO Guru (1000+ Posts, 500+ Likes)
@MRavi..i know it’s old HNI rules in Lic ipo. I’m just saying that SEBI must’ve also noted negatives in new HNI rules in huge IPOs and so permitted for LIC ipo as GOVT is scared, shivering and afraid to death for each and every point 😀
@sdz, My sincere apologies for misunderstanding your message.
Thanks
478.30. K.Atar| Link| Bookmark|
May 3, 2022 10:45:35 AM
IPO Guru (1000+ Posts, 700+ Likes)
Less number of FIIs in anchor list is blessing in disguise since they shifts funds with reason suited to them, all we need stability in stock, it is a big dividend play and LIC would like to shell some 💰💵
Please respect everyone's view. Nothing wrong with it. No one can be perfect in predictions. Let's not be critical on number of posts and likes.All members are here to benefit from all the view points
Disclaimer - I also dont agree with this viewpoint. Thanks
@German, I fully agree on your quote 'Let's not be critical on number of posts and likes'.
There are thousands of messages from new members (including @Iponahimilraha, of course not this one) are very informative and genuine (than many of my posts). So I too strongly object judging a person either by number of posts or number of likes.
However, @Arup jamshed can be little bit more descriptive for his 'very sure' message in a better way politely.
People are now comparing it to Paytm and spreading negativity. Currently, 3 out of 4 policies in India are sold by LIC. It is the largest insurance company in India and the fifth-largest globally. It manages assets worth nearly Rs 40 lakh crore. This amount is more than what the entire mutual fund industry manages. As of September 2021, it owned investments equivalent to 4% of the total market cap of the National Stock Exchange (NSE), one of India's major stock exchanges. It is good IPO for long term.
@surana mota bhai grey market he to ipo he varna adani bhi loss me khola aur paytm ko bhi kamar toda .. nykaa jesi mahengi company ko aur mehanga karaya aur zometo jesi loss wali company ne bhi lakho kamaya... 😉🐺
Main Aur Kya Bol Raha hun? Grey market Mein jo Rate hai Uski koi Guarantee Nahin Jiska GM Rate Upar hota hai Wo Discount Mein List hota hai Aur Jiska GM Mein koi Rate Nahin hota Wo Achhe Premium par List hota hai. Sorry Koi Galti hue ho to Expert's Logon Se.
Dear experts - I have updated my PAN in LIC link(some time in FEB) and it had showed successfully updated. So, if I apply now from same Demat which has above PAN using policyholder category - In worst case if PAN wasnt identified in LIC side would that application be considered as rejected or moved to retail? I am asking this question provided that how govt. systems works (I verified multiple times at the link they provided where one can update PAN - it was showing updated but still wanted to check with experts what happens in worst case.)
May be people who applied in Paytm are now comparing it to Paytm and spreading negativity. Or may be they are connected with those political people who are opposing LIC IPO.. LIC will not list at discount. I am pretty sure about that. This will surprise like Ruchi soya.
@iamnimitshah After a long time you are back. I am happy to see it. Thank you
471. U. K.| Link| Bookmark|
May 1, 2022 3:21:55 PM
IPO Guru (1700+ Posts, 900+ Likes)
LIC is not Paytm for sure. Although big sized operators will be in action to manage image of govt. Except RII remaining allotments are on the basis of proportionate, that is interesting. I am requesting experienced personalities for guiding in bidding for small investors.
471.1. U. K.| Link| Bookmark|
May 1, 2022 3:52:38 PM
IPO Guru (1700+ Posts, 900+ Likes)
For 100% allotment, -Apply minimum 15 share in Retail -Apply minimum 225 shares in HNI -Apply maximum 210 shares in Policyholder
शतरंज का खेल है। बड़ा मजा आयेगा। सरकारी corporation को नुक्सान नहीं होगा इस बार। ऐसा लगता है कि listing साधारण या जबरदस्त होगा। lic का popularity कुछ आम से ही ज्यादा है और trading full force से होगा, अगर नहीं जीतेंगे तो फिर घाटा भी नहीं होगा
@Amit ji, for all big IPOs like RPOWER, SBI CARDS, PAYTM, we've witnessed that there will be tremendous selling pressure on listing day from retailers/HNIs, do you think that LIC could sustain that pressure even around IPO price 900 (after discount)? And also, whenever there's a SO MUCH buzz around some IPO, we know what happens to retailers money :), just ask RPOWER holders, who still holds IPO shares!
you're 100% correct @techuserji. rpower, paytm were huge flops & the same may happen to lic ipo too. there may be only weak buying response on listing day. however there is infinitesimal hope that like ruchi soya there maybe a breakout because of patriotic response of investors & one or two bull runs in the initial few trading sessions… but your point is well noted & i'm not saying that this ipo is for those with low risk appetite… thank you for your direction, again
In SBI card IPO we must not forget the CPVID-19. It was the initial stage of CPVID-19 in India and due to panic among the investors SBI CARDS IPO ruined but in fact issue subscription was successful and now for LIC IPO things are much different.