Life Insurance Corporation of India (LIC) IPO Message Board (Page 82)

how can we flag any comments that looks like spam

Gmp -35

Against which expected price 2100/1900/1700/1500/1350...

@cautious
Against Rs 500 it seems.

Lic at 2100 or 1900 or 1700 or 1500 but Gmp still 15... no changes

There is no any premium. All is only calculations on artificially assumed subscription figures. Supply of shares is much much more than demand.

Once price is finalised, grey activity may start.

Bhav aane do....demand bhi aayegi proper bhav pe.

Valuation of LIC will be finalised soon by DIPAM and it will be very very competitive and attractive as per news-
Source zee business

500

Resp. Eagleye ji
I don't know what will come in front of us.
It's all guess untill officially price band announcement

Wait for price band and offer period before taking any position in LIC IPO. Likely possibility of additional day for retail and policy holder applications
Value of new business which helps improve embeded value is low in case of LIC so won't go by average market value to embdeded value ratio. My observation is that private insurers EV had risen faster on back of better business profile so paying higher ratios in past was fine.
In my sense Enterprise value to Embeded value ratio for company like LIC should be in range of 1.25 to 1.75 at best. Nothing exciting from point of view of future strategy so far and top of it expected dilution in coming years

इस आईपीओ से लिस्टिंग गैन मिलने की उम्मीद है?

Life Insurance Corporation of India IPO – Schedule *(TENTATIVE)*

Earliest
08th March – Announcement of Price Band
10th March – Anchor Investors Allotment
11th March – Offer Opens
15th March – Offer Closes
21st March – Finalisation of Basis of Allotment
22nd March – Unblocking of ASBA Accounts
23rd March – Credit of Equity Shares to Depository Accounts
24th March – Commencement of Trading

Latest
15th March – Announcement of Price Band
17th March – Anchor Investors Allotment
21st March – Offer Opens
23rd March – Offer Closes
28th March – Finalisation of Basis of Allotment
29th March – Unblocking of ASBA Accounts
30th March – Credit of Equity Shares to Depository Accounts
31st March – Commencement of Trading


Life Insurance Corporation of India IPO – Issue Information *(TENTATIVE)*

Issue Opens on: 11 March 2022
Issue Closes on: 15 March 2022
Issue Type: Book Built Issue IPO
Issue Size: 31,62,49,885 Shares
Face Value: Rs.10/- per Share
Issue Price: Rs.1,800 – Rs.1,900 Share
Discount: 5% (for Employees & Policy Holders)
Market Lot: 7 Shares
Listing At: NSE, BSE

Equity Shares outstanding prior to the Issue = 6,32,49,97,701 Shares
Fresh Issue of NIL Shares @1,900/- = Rs. NIL Crs
Offer for Sale of 31,62,49,885 Shares @1,900/- = Rs.*59,613.10Crs
(*considering 5% discount for Employees & Policyholders)
Equity Shares outstanding after the Issue = 6,32,49,97,701 Shares

Category-wise Break up:
Anchor – 8,06,43,751 Shares = 15322.31Crs. (@1,900/-)
QIB – 5,37,62,480 Shares = 10,214.87Crs. (@1,900/-)
NII – 4,03,21,860 Shares = 7,661.15Crs. (@1,900/-)
RII – 9,40,84,341 Shares = 17,876.02Crs (Lot size: 7 = 1,34,40,620 Forms)
Employees – 1,58,12,494 Shares = 2,846.25Crs. (5% discount = @1,800/-)
PolicyHolders – 3,16,24,989 Shares = 5,692.50Crs. (5% discount = @1,800/-)
Total Issue – 31,62,49,885 Shares = 59,613.10Crs.

Subscription required for 1X
RII = 1,34,40,620 Forms
NII = 7,661.15 Crs.

 

Life Insurance Corporation of India IPO – Financial Information (Basis of Valuation)

The information is collated from the following documents:
1) DRHP = Draft Red Herring Prospectus Dated February 13, 2022 (652 pages)

EPS for FY18-19 >>> Rs 4.15 (Page #97 of DRHP)
EPS for FY19-20 >>> Rs.4.29 (Page #97 of DRHP)
EPS for FY20-21 >>> Rs.4.70 (Page #97 of DRHP)
EPS for H121-22 >>> Rs.2.38 (Page #97 of DRHP)

RoNW for FY18-19 >>> 322.25% (Page #98 of DRHP)
RoNW for FY19-20 >>> 317.14% (Page #98 of DRHP)
RoNW for FY20-21 >>> 45.65% (Page #98 of DRHP)
RoNW for H121-22 >>> 18.76% (Page #98 of DRHP)

NAV as on September 30, 2021 was Rs.12.68 (Page #98 of DRHP)

Listed Industry Peer Group (Page #99 of DRHP):
SBI Life Insurance Company,
HDFC Life Insurance Company,
ICICI Prudential Life Insurance Company


Life Insurance Corporation of India IPO – *Market’s Current Estimates of oversubscription*:

NII = 40KCrs. = ~5.22X
RII = 50L Forms = 0.37X Applic. wise (Firm Allotment of 7 shares per lot)

Interest cost *@7.00%p.a.* for 7days = *255.07 paise for 1X*

Thus, for NII the costing = 5.22 X 255.07 paise = Rs.13.32 per share (= GMP)

And, for RII the costing = 7 X 13.32 = Rs.93.22/- (= Subject2)

Life Insurance Corporation of India IPO – *GMP Estimated*

GMP 15 +/- 1
Kostak NIL
Subject2 @100/-


LIC IPO

Issue Price = 2.25 X Embedded Value (as of Sept’21)
Market Cap = 2.25 X 5,39,686 Crs = 12,14,293.50 Crs
Rate per Share = MarketCap ÷ No. of Outstanding Shares = 12,14,293.50 Crs ÷ 6,32,49,97,701 = 1,920/-


Fair Value = 3.00 X Embedded Value (as of Sept’21)
Market Cap = 3.00 X 5,39,686 Crs = 16,19,058 Crs
Rate per Share = MarketCap ÷ No. of Outstanding Shares = 16,19,058 Crs ÷ 6,32,49,97,701 = 2,560/-


*LIC IPO*

*Comparison with Peer Group* 25/February

HDFC Life | CMP = 539.00 | No. of Shares = 2,11,18,13,255 | MCap = 1,13,827Crs. | Embedded Value = 29,543Crs. | MCap / EV = *3.853*

SBI Life | CMP = 1,054.40 | No. of Shares = 1,00,02,83,298 | MCap = 1,05,470Crs. | Embedded Value = 35,290Crs. | MCap / EV = *2.989*

ICICI Life | CMP = 477.00 | No. of Shares = 1,43,73,01,101 | MCap = 68,559Crs. | Embedded Value = 30,203Crs. | MCap / EV = *2.270*

And,
*LIC IPO | Issue Price = 1,900 (Tentative) | No. of Shares = 6,32,49,97,701 | MCap = 12,01,750Crs. | Embedded Value = 5,39,686Crs. | MCap / EV = 2.227*


Life Insurance Corporation of India when compared to SBI Life Insurance Company Limited …

On “MarketCap / Embedded Value” ratio basis …

Does it deserve to be lower or higher?

@selena - hahaha.. judging without knowing.. keep going.
I am not pro-bjp, pro-govt or pro-lic. I or eagleEye never said this is a good or fair valued IPO. Its just that you assumed it we are saying it.
Btw.. I am not a andh-bhakt, I am an anti-national.

@selena , what's your real name child?
where are you from

I tried linking pan with my lic and it says request processed successfully but when checking status it shows pan not in out records
But again when i try to link it says request already posted
What to do please guide
Or shall I visit office of lic offline
Thanks 🙂

One is updated but other two still not done and right now I’m in college:(
I’ve submitted online application hope it gets registered

Please check PAN card no in capital latter

Pharmeasy GPM 85.......

dates please

I have account in canara bank they are taking money(pmjjby=330rs) every year. I have heard that pmjjby policy holders are also eligible under p/h quota?.I have asked the bank about the issue they dont know they r tied up with lic or hsbc.I tried to download the policy certificate but failed. can anyone shed light on this

Pmjby not valid for any quota as its group insurance not personal

“Indian Embedded Value” or “IEV”

Indian Embedded Value or IEV consists of our Adjusted Net Worth (“ANW”) (consisting of our free surplus and required capital) and the value of in-force business (“VIF”). The free surplus is the market value of assets allocated to, but not required to support, the in-force covered business as at the applicable valuation date. The required capital is determined as the amount of assets attributed to the covered business over and above that required to back liabilities for covered business, the distribution of which to shareholders is restricted. The VIF is a measure of the value of the Shareholders’ interest in our “covered business”. The VIF represents the present value of the Shareholders’ interest in the earnings distributable from the assets allocated to the covered business, after making sufficient allowance for the aggregate risks in the covered business. The allowance for risk is calibrated to match the market price for risk, where reliably observable. The “covered business” is all life insurance and pensions business, accident, and health insurance business across both individual and group segments: (a) that has been written by our Corporation in India; and (b) that has been written by our Corporation’s entities outside of India, either through its branches, subsidiaries or joint ventures.

For more details, see SECTION IX: “EMBEDDED VALUE REPORTS” on page 582 of the DRHP.

hEY guys,
I did not understood one thing. How can GMP circulated without IPO Pricing declare ?

Who is going to apply for this and who will bail this out?

Fdi 20% permission now cleared

It seems someone asking same type of questions in fake names and answering himself with comercial names to become popular ...????

By mistake he initially asked the same question by his original commercial name :)

In this cases, our responsibility is to click on the SPAM link on those unnecessary comments. I have reported those comments as SPAM. Others can also do same.

I wish Trump was in power to manage this menace. Russian economy is already destroyed and now Putin wants to destroy all other economies.
LIC won't able to sail if war is not de-escalated.

@Selena
Kuch nahi ben, aap rahne do. Itne kitne comment karoge ?

Being enemy of USA is dangerous but being friend of USA is fatal.
It proved again.

Please suggest few good stocks to buy at current levels

@Aaashish, thank you a lot!

wc rocky ji

Is there any coup ? Abhyuthana ?
It may be the work of jamtara gang as well.

One can buy a maximum number of lot size for LIC IPO. The point is that LIC is a legacy brand, it will give returns. Never enter the market unless you are willing to wait for the long run.

Please suggest about how can policy holder apply for IPO.
What are benefit to policy holder for this IPO

How to apply LIC ipo?