Life Insurance Corporation of India (LIC) IPO Message Board (Page 74)

I am big believer of insurance sector. Already holding Sbi life, HDFC life and Icici Lombard.
Though lic loosing market share consistently I will bet on it a small portion of portfolio. For me valuation is very attractive. Sbi made good money for me because I added alot on lower price, I will try same here.
Of course all this is for long term.in Current conditions it may list lower. I will add more on dips.

government of india stock. though gmp is down, i don't think the stock will list at discount. however it continues to be a high risk investment & dividends likely to be low & growth slow. if however the retail public adopt lic as a brand ambassador like they took ruchi soya in, investors will be very lucky. those with high risk appetite may gamble, i'm applying in retail for 2L. will modify my plan after reading chittorgarh experts strategie(s) on the last day of issue

Why applying 14 lots in lic is beneficial and not in any other ipo?
Reason
Nykaa had almost 31 lakh applications
Even if we get that amount of applications or more like 35-40 lakhs. I assume after considering the green shoe option also people will get 50-100% of the lots they applied
For example.
35 lakhs people applied and total forms after considering green shoe (46lakhs + 9/21% = 65lakhs applications).

Assuming 3 lakhs (people who know about allotment process) 14 lots average =42 lakhs
And another 32 lakhs people each 1 lot 32 lakh lots

Each one lot will be alloted to 35 lakh people
Balance 30lak lots /3lakh people =10 additional lots

So those who applied 14 lots will be getting atleast 11 lots. Worst case if 5 lakhs people applied 14 lots 7 lots they will get

Above assumption is based on the factor , ipo has good gmp and market is stable.

Could we apply in both policy holder category and retail category with same demat account?

Yes

Yes. Why question in first place given policy holder and retail are two different categories
If you are an employee you can also apply under that category

This may remain undersubscribed in retail and shareholders quota,
rare chances of subscription going beyond 2 times in retail

As i mentioned, Retail subscription did not go beyond 2 times

You have mentioned it will get under subscribed in shareholders quota as well but it is over subscribed in PH quota by 6.1 times.

Retail everybody knows it won't cross 2 times as 35% is reserved for retailers which is huge considering IPO size of 20567cr.

The Indian Embedded Value (IEV) of LIC as at 31 March 2020 and 31 March 2021 is INR 46,497 crore and INR 95,605 crore.

IEV of LIC is approx INR One Lakh Crore.

NAV of LIC is INR 12.68 only as 30Sept2021.

EPS is INR 4.76 as 30Sept2021.

P/E is INR 949/4.76 = 199 Years.

Very Hard to decide.

Your formula of price earning is not applicable as insurance company also has contracted policies ensuring cash flow without selling a new policy.
Can you imagine same for any other business i.e. getting cash flow on past contracts

Keep apart all the bad publicity on LIC. In my opinion this is going to be oversubscribed. No chances of full and firm allotment as suggested by many media expert.

Hotpacker ji,
Hopefully with discounts in both retail and policy holder category, applications in multiple lots will be a norm in this IPO. Even I am putting two 2 lakh applications in policy holders category plus retail category application in same name.

I have multiple accounts but I will apply from only one account. There are many investors like me who apply from multiple accounts but they will apply in 1-2 accounts only. So number of retail applications will be less in LIC as compared to highly subscribed IPOs.

Next Car Trade & Paytm .big avoid

GMP Crashed Now GMP Only Rs.13

So, Everyone happy now...

@Amit Chheda, Sir... Your wish has come true.. Final offer price is as you asked.. 😊👍

The price band for the initial public offering of Life Insurance Corporation of India (LIC) has been set at Rs 902 to Rs 949, with a discount of Rs 60 for policyholders, CNBC TV18 learnt from government sources on April 26.

For retail and employees, the discount will be of Rs 40, the persons privy to the development told the news channel.

Price band set at 902-949.60 rs discount for policy holders.

Govt Sources on #LICIPO | Price band 902/- to 949/-

Discount for retail and employees -Rs 45/-

Discount for policy holders- Rs 60/

Formula for working out market value does not work as ratio of market cap to embeded value but more as simple way to capture value of new business
Market cap of Insurance company equals
Embeded value plus VNB( value of new business) multiplied by number of years you feel comfortable
Given low value of new business for LIC, low ratio of market cap to embded value is justified

Issue almost final as per some reliable bsourc:-

Opening on 4th May and Closing on 9th May

Issue price 1000
Lot size 15

Price band 954-960

Enjoy 💃💃

There need to be a gap of 5% in lower and upper price band. Suggested band does not have even 1%. So one of the figures is wrong

Removing Third party ASBA from major banks, just before LIC IPO. Bad for this IPO or good for reatail customers? ?

It should have been done long time ago

At 950 or around 1.1 1.2 market price to embeded value per share LIC issue looks attractive
However listing gains are doubtful as IRFC was also attractive on fundamental parameters but faced market problems due to high liquidity, poor understanding of business model of the company

Dear eagleye
Can you comparison with EPS p/b with all life insurance so more helpful to all chittorgarh readers please.

Given historical issues LIC P/B ratio has no meaning as for long time capital was Rs 5 crore

*LIC IPO*

*Comparison with Peer Group* 25/April

HDFC Life | CMP = 542.00 | No. of Shares = 2,11,26,19,161 | MCap = 1,14,504Crs. | Embedded Value = 29,543Crs. | MCap / EV = *3.876*

SBI Life | CMP = 1,094.80 | No. of Shares = 1,00,03,70,562 | MCap = 1,09,521Crs. | Embedded Value = 35,290Crs. | MCap / EV = *3.103*

ICICI Life | CMP = 518.40 | No. of Shares = 1,43,73,10,661 | MCap = 74,510Crs. | Embedded Value = 31,625Crs. | MCap / EV = *2.356*

And,
*LIC IPO | Issue Price = 950 *(TENTATIVE)* | No. of Shares = 6,32,49,97,701 | MCap = 6,00,875Crs. | Embedded Value = 5,39,686Crs. | MCap / EV = 1.113*

Nice promotion 👍

within 3 years of listing it may test US$125Bn market cap which means Rs. 1500 per share