Life Insurance Corporation of India (LIC) IPO Message Board (Page 87)

" Fedfina" filed dhrp.
Is there any share holder quota?
Expert please confirm...

Yes,
Buy 1 share of federal bank, cut off date will be RHP file date.

Those who want to buy shares for short term. Stock will give 25% to 30% return from current level.

IEX
IGL
Manali Petro
Manapuram Finance ltd

Do your own research before buying any shares.

LIC ki naiyaa to doobti lag rahi hai ..
GMP in minus now
- (50 )

@ K Atari bhai
In response to your query , I like to say that investment income of LIC is 2.73 lac crore in the last FY which is about 7.6% earning on investment. If you want to track growth rate , the figure was 1.8 lack cr in 2017 FY.
As to profit from sale of equity , it is 29000 cr in the first 6m of this current FY. This figure varies from yr to yr depending on the circumstances.
As to dividend income, I have not got any convincing data .As total investment in equity markets is about 9.78 lac cr , you may take in the order of 10000 cr.
Thank you

Clearly avoid LIC ipo.
can buy in 3 digits later after listing.

Can one apply both from employee and retail category with same PAN number?
also from which category, allotment chances will be more?

Yes
you can apply.
Even if you have lic policy , in policy holder category also aooky

Yes u can apply....u will get allotment in both.....10 % discount may be for employees so most profitable..u can apply in policy holder quota with same pan card..Retail employees and policy holder in all categories with same pan card...Retail up to 2 lakh .... policy holder upto 2 lakh ....

Lic ipo may start 11 th March.

I am having number of LIC Policies. I am not going to subscribe it. If anyone wants to take the advantage of 10 % Discount, Let me know.

Hello PPatel ji,

Kindly advise on below shares. Shall I buy on current level ?

JP Power (CMP 7.95)
FCS SOFTWARE (CMP 3.90)
Vikas Life (CMP 5.50)

As advised by you, I have booked profit on MFS info corp and brought Sellwin.

You're superstar..

Many thanks in advance.

bhai is se achha koi dhang ka stock buy kar le. bahut se stock hai jo abhi low par hai.
Personal opinion.

I just want to say avoid penny stock.

As per market gossip , Price band would be around embedded value 2100-2150. After Paytm another big issue in terms of high price and issue size.
GMP of 15-20 Rs. is also a joke. Not even 1 % to cover brokerage expense.
Rupee saved is rupee earned would be the strategy.
Also we should not forgot it is 100% OFS diluting 5% stake to meet indirectly their 75000 Cr tax liability.
Most probable issue opens on 14 March.

Dear friends,
Today I shall discuss how big is this IPO ! I am somehow worried to see my friends succumbed to its volume. Yes , its very big . It is very big because the company is very big and thereby its shares will also be very big. In this fin year we have seen many an Ipo where fv =1 share has come out with sky kissing valuation and traded at far and far above much on the strength of infused gases of future prospects but in this case you will enjoy glorious past and present which you can extrapolate for any future derivation as becuse in the history of 56 years it has always surpassed the earlier years performance on all key indices.
This is probably the only psu company, which could not be impacted by the 23 private players endowed with foreign funds (LI is a capital intensive business most at the initial years ) at the end of 22 long years. On the contrary, it has flourished in the face of competition and enjoys about 72 to 75 % market share at the year end computation. This shows the intrinsic strength of the company. In the year 2003-04 onwards private insurance people used to tell people that after 10 years you will not hear the name of LIC. Now they don't say like this.
For sometime they say it was LICI now LIC as because it is private as "I" has vanished. But the fact is that the abbreviation LICI now designated to Life insurance council of india. Now, come to the point.

Friend of mine JETHALAL questioned the efficiency of LIC.
Total asset of LIC is about 40 lac crore, for hdfc life it is 1.32 lac crore, for icici pru it is 2.3 lac cr, for sbi life it is 2.56 lac cr.
LIC' s 40 lac cr asset amounts to 3.6 times the total asset of the 23 private insurer or 1.3 time of total AMU of MF industry.
Lic is a giant in group insurance business including group superannuation business.Total premium income of lic is about 3.3 lac crore whereas the same for sbil and hdfcl it it is of the order of 45000 cr
In the current year, in the first two quarter total premium income is 1.86 lac crore.
For an LI company 30% of yly new premium comes in the first two quarters. So total premium income in this year will cross 4 lac crore for the first time and the total income may touch 6 lac crore. Income from rent 22000 cr, profit on sale/redemption may exceed 40000cr.
Now come to an important aspect of quality of asset. Everybody knows that LIC is a property rich company. It has huge number of gigantic buildings and lands in prime places in all big cities. Most of its branches and higher offices are in own buildings unlike most other organisations. Now you know how the valuation of these city properties going up by leaps and bounds and at the same time saving the huge rental cost and earning rental as well. It remains mentioned that most of such assets are still in book value . So actual value of these assets are far greater than what is shown .
@Au Oi has raised an important point that the delay in LIC IPO is for the complexity of the valuation. I have some information that there is some portion still not completely valuated and will be adjusted later on.
Now take an important point of insurance penetration.Insurance penetration is defined as the total insurance premium collected divided by GDP. By 2021 it was pegged at 4.2% (life 3.2%+ non life 1%) but for last 10 yrs it is hovering around 2.7%. Thirty years back it was around 2.3% while there was only LIC. In this year due to brilliant performance of LIC and to some extent by the private players a big jump in this respect may be visible.
Competitive advantage of LIC:-
1.GOVT has provided support in the form of 'Sovereign Guarantee'
In our country two companies enjoy " soverign guarantee " A) Post Office B)LIC for sum assured and bonus. It means Govt will pay if they fail. It is free of cost but It has an imputed cost which we often forget. For banks upto 5 lac insurance protection is given by DICGC not by Govt.
2.Sentiment of middle class people. If I have to take a LI policy , I shall take it from LIC as because I Know that this is the only item which I shall not be able to deal with in case of a death claim and it will be dealt by some weaker hands like my wife and children.
3. A LI policy is most often sold than bought and continuation of it depends on the agents who are whole timers and reminds time to time.LIC has that network.
4.A good track record and image in the public mind. A top rated Brand in the country.
5.Mostly sell conventional policy which runs for years.
6. As it is very big with pan India presence with fairly homogeneous distribution and possibly the 7th largest in the world, it can easily bear the brunt of any adversity to which it may be exposed or any adverse selection as may come by.
7.LIC is the king in the equity market extracting long term investment benefit more than anybody else.
Seldom is there any big company where LIC don't have at least 8 to 15% stake.
In recent days people have seen how LIC has saved its own interest and the interest of Vedanta share holders. Vedanta wanted for delisting at a price of 85 and then 135 but LIC told that it will not sell any share less than 320. So Vedanta's ill intention was foiled. Now see the price of Vedanta.
8.LIC is the bail out master. It has not only recouped IDBI but will make huge profit of it. On different occasions at the time of big fall (say 2008, 2020) in the market LIC has accumulated / many say forced to buy , big stake which eventually gives many fold return. So it is a silent hunting cat .
9 LIC is an investment efficient company. It never keeps its fund idle. It is a giant in call market. It has fresh liquidity of atleast 1500 cr everyday to put to CBLO which gives interest income in short term until it settles its long term investment planning. You will be surprised to know that it has history of interest earning at a rate more than 30% at the time of liquidity crunch.
10. LIC is a long term investment giant who has ability to invest for 30/40 years. It has even ability to invest its future income as we have seen some five years ago ,it accorded to invest Rs 30000 per year for five years to Indian Railway at interest rate to vary from 7.84% to 8.24%.per annum compounding.
11. LIC undertakes this huge operation including the maintenance of huge property with the help of 92000 administrative staff and 22000 field officers. SBI has 2.45 lac staff, Hdfc bank have 1.2 lac , Icici bank 97000, Axis bank 78000and Idbi 17000.
For now this is something about the efficiency of the company.
SO LIC IS A KHANDANI COMPANY .

In the next post , I shall try to understand how big is the IPO and other relevant aspects.
TO BE CONTINUED
Thanks

Very well explained...sarkar ji .
Appreciate your efforts sir...

@Nausikhiya
Thank you for your sense of humour.
@ Cem cho , @K Atar , @ Yash Chopra and others
Happy to note that you have found it useful.
Thank you all

Dear Friends,
Before going to how big is this IPO, I am diverted and set to enumerate some negative points of the insurance companies as a whole complying with the request of @ JETHA LAL mota bhai .This is also for my credibility lest someone should think that I advocate it.
1 .Sec 27 of Insurance act 1938 subsequently extended to IRDAI act envisages that any insurance company conducting LI business in India will have to invest at least 75% of its fund in the Government securities and approved securities. So insurance companies can't game with the money. Consequently LIC has exposure of about 28 lack crore in the Government &social sector. This adds to the development of the infrastructure and the community as a whole. LIC' growth rate in this sector is 15%.
People should think whether it is negative or positive.
2. Life insurance is a high risk business .For instance you can set up a bank in your village and enjoy interest margin. But you can't a LI because as a single death claim can wind you up. Enormous volume and homogeneous distribution is a protection to it. Suppose for any reason 1cr death claim comes.what will happen. Private companies are heavily exposed to it while for LIC , there is sovereign guarantee.
So with this IPO there will be some off load of such risk and Government will get some rupees for development work.
3.LIC has long been advocating for a bank licence. But still have not got (except an edge in exchange of nose). A established bank may help LIC a lot. Those private insurers are successful who have banks. I think bankers should not be provided with insurance licence. The success of such insurers owes it origin to some unethical practice.At the time of providing with loan or in suitable circumstances they compel you to take LI policy , I think many have such experience. Though such policy does run for long but count for commission (to be taken by the interest people in the office) market share etc as JETHA LAL mota bhai has pointed out but at the year end computation LIC stands to a larger proportion.
LIC is deprived of this opportunity. Take the example of EXIDE . In spite of having 65% market share in battery market in a very congenital atmosphere of EV ,it's share price is undervalued for this insurance overhung (Some may point out Amara raja but that has a different story)
4.LIC is mainly engaged in conventional type of business whereas the private companies in ULIP policies.ULIP market is boom when the share market is boom.
So it is not a permanent type of business. In different occasions they gives the assurance of highest NAV and trap people.
5.LIC ' s properties are exposed to heavy taxation by corporation, municipality or local bodies as they are mostly in prime position. Sometimes these rates are 3 to 5 times the worthy rate.So these bodies squeez LIC.
6.Have you ever seen any 5% IPO ? As per prevailing regulation any very big company can come with 5% IPO but within 18 month it have to make it 10%. So it is correct that there will be further stake selling but not at a pace that some friends in this forum apprehend.
In case of coal India , I have seen that the requisite regulatory obligation of MPO of 25% was observed in Nov'2018 I. e 8 years after the IPO.
7. There is a news that LIC has an O/s income tax payment of about 75000 cr
Fact is that , it is the accumulated amount against 63 pending cases from 2003 The bone of contention is the method adopted. So it is a disputed case where LIC may have to pay some amount may be. This is a case of contingent liability. LI companies are always set to book contingent liability so that profit do not get inflated and future complication may be avoided. If anybody goes to court against any reputation of claim or otherwise, the company books the contingent liability which will be reverted to revenue in case the verdict favours.
So in this case , it is not negative but may turn to be positive in future.
8.LIC has good stake in PSu including Government banks.The price of such bank shares are in doldrums. But with the help of different valid action by the present Government, situation improving.In future if this banks improve, there is scope of good fortune as the Npa will directly add to the profit of the bank and thereby increasing the share price.
Already too big , so I stop.
TO BE CONTINUED
Thank you all

Eagle ma'am adani wilmer ko Long term ke leya purchase ki Best rate kya he

Bakwas IPO . Listing gain ki koi ummid nhi hai ..

I will avoid this IPO.

Let's wait for price and anchor book...too early to predict now...zomato story was similar..earlier GMP was low, but looking at mf and institutions buying interest, it performed well post listing....but it was listing gain candidate.... similarly now too early to give verdict.

Agree with you amit ji
Please share your view after anchor investor list . Waiting for your review.

I have sent a request of linking my pan with policy 4 days before till now i have not got any notification from them.do anyone know about this?

Replying to D grade - 2 taka types people require downgrading your label

Next year series of ofs for lic may be seen every quarter till govt stake fall to 51 percent or adani like number one rich prepared for takingover Lic it seems

Comment daalna complusory nhi hai forum me. Isiliye jo b daal rhe ho soch samaj ke daalo.

Dear friend you are so Causious than how can disclose such valuable information, that make careless people like us laugh.

IMPORTANT
https://m.economictimes.com/markets/ipos/fpos/lic-owes-income-tax-department-rs-75000-crore-reveals-ipo-draft/articleshow/89640201.cms

*LIC IPO*

*Comparison with Peer Group*

HDFC Life | CMP = 589.75 | No. of Shares = 2,11,18,13,255 | MCap = 1,24,544Crs. | Embedded Value = 29,543Crs. | MCap / EV = *4.216*

SBI Life | CMP = 1,147.05 | No. of Shares = 1,00,02,83,298 | MCap = 1,14,737Crs. | Embedded Value = 35,290Crs. | MCap / EV = *3.251*

ICICI Life | CMP = 525.50 | No. of Shares = 1,43,73,01,101 | MCap = 75,530Crs. | Embedded Value = 30,203Crs. | MCap / EV = *2.501*

And,
*LIC IPO | Issue Price = 2,100.00 (Tentative) | No. of Shares = 6,32,49,97,701 | MCap = 13,28,250Crs. | Embedded Value = 5,39,686Crs. | MCap / EV =* *2.461*


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?

Below is the list of apps approved by NPCI and their UPI handles.
Sr. No.      UPI Apps Live on IPO      Handle
1      BHIM Baroda Pay (only Android)      @BARODAMPAY
2      BHIM RBL Pay (Android & iOS)      @rbl
3      BHIM PayWiz ( Android )      @idbi
4      BHIM (android & iOS)      @upi
5      BHIM AUPay (Android & iOS)      @aubank
6      BHIM Axis Pay (only android)      @axisbank
7      BHIM BANDHAN UPI (Android & iOS)      @bandhan
8      BHIM IndusPay (only Android)      @indus
9      BHIM KBL UPI (Android)      @kbl
10      BHIM Lotza UPI (only Android)      @federal
11      BHIM SBIPay (only android)      @sbi
12      BHIM UCO UPI (Android and iOS both)      @uco
13      BHIM YES PAY (only Android)      @yesbank
14      Citi Mobile (android & iOS)      @citi & @citigold
15      DhanSmart (Android & iOS)      @dlb
16      DigiBank - DBS (Android & iOS)      @dbs
17      Freecharge (Android & iOS)      @freecharge
18      Google Pay (android & iOS)      @okhdfcbank, @okaxis , @oksbi, @okicici
19      HSBC Simply Pay (android & iOS)      @hsbc
20      IDBI Bank GO Mobile+ ( Android & iOS)      @idbi
21      iMobile by ICICI Bank (android users)      @icici
22      IndOASIS (Android and iOS both)      @indianbank, @allbank
23      Kotak Mobile Banking App (Android)      @kotak
24      MobiK wik ( Android & iOS)      @ikwik
25      Paytm (Android & IOS)      @paytm
26      Phone-Pe (Android & iOS)      @ybl, @axl, @ibl
27      SIB Mirror+ (only Android)      @sib