Life Insurance Corporation of India (LIC) IPO Message Board (Page 88)

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

Earliest
07th March – Announcement of Price Band
09th March – Anchor Investors Allotment
10th March – Offer Opens
14th March – Offer Closes
17th March – Finalisation of Basis of Allotment
21st March – Unblocking of ASBA Accounts
22nd March – Credit of Equity Shares to Depository Accounts
23rd 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: 10 March 2022
Issue Closes on: 14 March 2022
Issue Type: Book Built Issue IPO
Issue Size: 31,62,49,885 Shares
Face Value: Rs.10/- per Share
Issue Price: Rs.2,000 – Rs.2,100 Share
Discount: 10% (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 @2,100/- = Rs. NIL Crs
Offer for Sale of 31,62,49,885 Shares @2,100/- = Rs.*65.416.29Crs
(*considering 10% 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 = 16,935.18Crs. (@2,100/-)
QIB – 5,37,62,480 Shares = 11,290.12Crs. (@2,100/-)
NII – 4,03,21,860 Shares = 8,467.59Crs. (@2,100/-)
RII – 9,40,84,341 Shares = 19,757.71Crs (Lot size: 7 = 1,34,40,620 Forms)
Employees – 1,58,12,494 Shares = 2,988.56Crs. (10% discount = @1,890/-)
PolicyHolders – 3,16,24,989 Shares = 5,977.12Crs. (10% discount = @1,890/-)
Total Issue – 31,62,49,885 Shares = 65,416.29Crs.

Subscription required for 1X
RII = 1,34,40,620 Forms
NII = 8,467.59 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. = ~4.72X
RII = 50L Forms = 0.37X Applic. wise (Firm Allotment of 7 shares per lot)

Interest cost *@7.00%p.a.* for 7days = *281.92 paise for 1X*

Thus, for NII the costing = 4.72 X 281.92 paise = Rs.13.32 per share (= GMP)

And, for RII the costing = 7 X 13.32 = Rs.93.24/- (= Subject2)

Life Insurance Corporation of India IPO – *GMP Estimated*

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


LIC IPO

Issue Price = 2.50 X Embedded Value (as of Sept’21)
Market Cap = 2.50 X 5,39,686 Crs = 13,49,215 Crs
Rate per Share = MarketCap ÷ No. of Outstanding Shares = 13,49,215 Crs ÷ 6,32,49,97,701 = 2,133.15


Fair Value = 3.25 X Embedded Value (as of Sept’21)
Market Cap = 3.25 X 5,39,686 Crs = 17,53,980 Crs
Rate per Share = MarketCap ÷ No. of Outstanding Shares = 17,53,980 Crs ÷ 6,32,49,97,701 = 2,773.06

For premium to go upto 150 rs NII required to pump In 4 lakh crore which seems impossible...so Biggest hope for retail investors is in policy holder quota...But that too not for small investors as allotment will be on proportionate basis ..But not like shareholders here application is capped at only 2 lakh maximum....

Dear friends,
I beg to present some data for taking decision at your end.
In some posts, it has been shown that the eps is some Rs 4 and NAV, Rs 12 etc. In this chittorgarh page yly profit shown as some 2600 cr.
Keep it in mind that all these figures are for other than the predominat insurance business .So these are meant for those businesses where p&l a/c is possible.
In case of any life insurance business may be in our country or abroad, there may not be any eps, p/e , BV etc for the essential nature of the business and consequential standard accounting procedure.
So you can't find the mentioned indices for the listed companies like sbi life, hdfc life etc. So there is no way of comparing this incumbent with the existing listed peers.
Now, if anybody can't but comparing then an item called '' embedded value" will creep in. I will not go into the details for now but use this item for the sake of comparison.
The embedded value as calculated for LIC is 5.39 lac cr. For others as followes:-
Company .............EV............MCAP..........MCAP/EV
HDFC LIFE........27000 cr....121000 cr.........4.5
Sbil....................33000cr.....112000 cr.........3.4
Icici L.................29000cr.....73000 cr...........2.5
Total..................89000 cr....306000 cr..........3.43 (mean)
So LIC mcap at the highest 5.39 lac cr× 4.5 = 24.25..share price=3800
..................................lowest 5.39 lac cr×2.5 = 13.48...share pr = 2100
...................................mean.5.39 lac cr×3.43=18.34.....share pr =2900
Now you can see that minimum price should be 2100 as per the icici life.and 3800 as per hdfc life or may be at 2900 at mean price.
But one fundamental thing can not be forgotten that a tiny 5% life insurer(other than LIC) can't be compared with a big giant like LIC. If anybody do it , it will be a comparison between an elephant and a smaller being . For life insurance companies the bigger the better as it can stand steadfast againt any adversity which any insurance company may face any time as AMP SANMAR could not withstand the onslaught of Tsunami some years ago.
This is in a nut shell ,may be in reponse to @ Cautious Proprio Sir.
Thanks

@ K atar thank you
@Ou Ai
As usual your observation carries weight. This is a complex subject and you have understood a lot by this time. As you want my comment, I shall soon come out with these matters.
@ Jethalal
Your post contain only one valid point i.e PSU overhung . Still you will find some PSU s which may claim "My withers are unrung ".

Others are hawa hawai baat. Can you substantiate your points with some data. I know you can't.
Thank you all.

@ captainjack
Your contention has strong footing.

I have no doubt about good & bad assets and investments of LIC. Because I know them.
But my question is this issue some 60+K Cr is too big to get oversubscribe. Moreover if war starts where will be markets.
Even we ignore this Govt has to sell 25% in 3 years and this is just 3%. Market rate depends upon demand & supply not meare earning or assets. See PFC profits sky high assets huge book value 250+ dividend yield 8-10% or IRFC.
So question is can it be another IRFC.
All experts can shed light on this question.

LIC will be same like IRFC. Good profit. But no Dividends. Share price always at bottom.
Just see IRFC - Quarterly Net Profit at Rs. 1,593.91 crore in December 2021 up 52.27% from Rs. 1,046.74 crore in December 2020.
Still IRFC going down and no dividends.
PSU are for Govt and Govt employee salaries. Not for aam janata !!

Hey Anybody Know What is the process to Tender Shares in Buyback in Angel Broking?
On Their Website It is Saying I Should E-Mail Them....
What's Process after Mailing?
Is POA Compulsory?

open 10 Mar
close 14 Mar
allotment 17 Mar
unblocking 21 Mar
Credit to demat 22 mar
listing 23 Mar
Price band 2000 - 2100
lot 7 share
listing NSC,BSE

bhai, acchha hua bata diya varna me bechne bhi NSC me jata..

;D

Bhai mera tentative likhna bhul gaya ...

Alert for those people who keep posting their PAN number for allotment details.
Recently Dhani confirms misuse of others PAN for loan purpose..
I think Admin should remove those messages..

Which bank allow 5 third party ASBA application except SBI and AXIS bank? Does any one have IDEA? I recently opened account in BOB but now it is not support 5 application.

Sure sir. We will add it on the IPO detail page.

PNB
INDIAN BANK
ALSO ALLOW 3rd party ASBA

When a PSU insurance comes for IPO, Why my mind always think of GICre, New India Assurance. Still investors who bailed out these companies in IPO has not made money from it.

I think compare to these companies with LIC is not fair.

LIC owes 75K crores to IT department.
If LIC has to make this payment, it might impact its profitability going ahead as IPO prospectus has not mentioned any provision that LIC has kept aside for these claims

Read more at:
https://economictimes.indiatimes.com/markets/ipos/fpos/lic-owes-income-tax-department-rs-75000-crore-reveals-ipo-draft/articleshow/89640201.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
https://economictimes.indiatimes.com/markets/ipos/fpos/lic-owes-income-tax-department-rs-75000-crore-reveals-ipo-draft/articleshow/89640201.cms

Seems like experts like norul, lokes, Mravi, ipobull will coments on lic just after pricing is done...dear all ur presence and guidance is very crucial for all retail and policy holder, so we all have lots of expectations from u all and other senior members..... Hope pricing is done fair bcoz nii, dii, nhi, retailers and employees are all set and excited for this ipo....hope goi keep it's greed aside and do fair valuation, bcoz mcap can rise 2 fold post listing also.... So if pricing is good near 1500 to 1800, then huge demand will be there....it should come at fair discount to private players....

LIC IPO


*Issue Price = 2.5 X Embedded Value*
Market Cap = 2.5 X 5,39,686 Crs = 13,49,215 Crs
*Rate per Share* = MarketCap ÷ No. of Outstanding Shares = 13,49,215Crs ÷ 6,32,49,97,701 *= 2,133.15*



*Fair Value = 3.25 X Embedded Value*
Market Cap = 3.25 X 5,39,686 Crs = 17,53,980 Crs
*Rate per Share* = MarketCap ÷ No. of Outstanding Shares = 17,53,980 Crs ÷ 6,32,49,97,701 *= 2,773.06*

Thanks #eagleye mam for your valuable information

🦅🦅eye ur fair valve based on 2.5 embedded value is absurd... Lic being psu should come at 1.75 to 2 max embedded value....
Hope u understand and hope ministry cabinet read this message for success of lic ipo... 🤣🤣

Can HUF account have UPI??
those who have huf account please reply

One more doubt ,do they provide online account opening or doorstep account opening??

Doorstep account opening, one condition for account opening need to give 25k amount cheque, minimum balance req is 5k.

LIC IPO: इश्यू 10 मार्च को खुल सकता है, प्राइस बैंड 2000-2100 रुपए रहने की उम्मीद

LIC IPO का इश्यू साइज 65,400 करोड़ रुपए हो सकता है और इसकी लिस्टिंग मार्च 2022 में होने वाली है

LIC IPO: देश की सबसे बड़ी बीमा कंपनी LIC का इश्यू 10 मार्च को खुल सकता है। कंपनी का इश्यू 10 मार्च को खुलेगा और 14 मार्च को बंद हो सकता है। LIC के इश्यू का साइज 65,000 करोड़ रुपए का हो सकता है। अभी तक मिली जानकारी के मुताबिक, कंपनी का इश्यू प्राइस 2000-2100 रुपए हो सकता है।

सरकार ने रविवार 13 फरवरी को LIC का ड्राफ्ट पेपर जमा किया था। हालांकि अभी सरकार ने LIC के IPO खुलने की तारीख का औपचारिक ऐलान नहीं किया है। सरकार ने कहा है कि इनवेस्टर्स के साथ रोडशोके बाद वैल्यूएशन पर फैसला लिया जाएगा और इसकी लिस्टिंग मार्ट 2022 में पूरी हो जाएगी।

इस बात की भी अटकलें लगाई जा रही हैं कि LIC के IPO में 3.16 करोड़ शेयर उसके 28.3 करोड़ पॉलिसीहोल्डर्स के लिए रिजर्व रहेंगे। कंपनी के पॉलिसीहोल्डर्स और कर्मचारियों को डिस्काउंट भी मिलेगा। पॉलिसीहोल्डर्स को इश्यू 10% सस्ता मिलेगा। LIC के पास करीब 13.5 लाख रजिस्टर्ड एजेंट हैं जिसके जरिए कंपनी पॉलिसीहोल्डर्स को निवेशक बनाने की कोशिश करेगी।

LIC के IPO को लेकर बाजार में जिन तारीखों पर चर्चा हो रही है वो ये हैं। हालांकि अभी तारीखों का औपचारिक ऐलान नहीं किया गया है।

LIC का इश्यू खुलेगा: 10 मार्च

इश्यू बंद होगा: 14 मार्च

इश्यू प्राइस : 2,000-2,100 रुपए प्रति शेयर

पॉलिसीहोल्डर्स: 3.16 करोड़ शेयर रिजर्व हैं जो 10% डिस्काउंट के बाद 1,890 रुपए पर मिलेंगे

जय भारत
जय सिया राम जी 🙏😊

@thiagarajan ramasamy.

Use Google translate it works fine in translating from Hindi to English. Sometimes you may have to cut in parts & paste to translate.


Ungal nanban🙂
Arca.

@thiagarajan ramasamy.

You should thank DMK for running campaign " Hindi Theriyadu Poda"
Tell them, HINDI THERIYATTAL PODA.
Knowing Hindi benefits.

Heard from friend that if lic policy is in name of mr.X, then demat account should be in that individual mr.X alone name and not joint account of mr.x & other...if this true?

Amit ji,
In FAQ that I read it is given that :
Joint life policy: Only one of the two policyholders can apply for the equity shares under the ‘Policyholder Reservation Portion’ category. The PAN number of the applicant bidding in the offer (you or your spouse) needs to be updated in the policy records.
The applicant has to have a demat account in his/ her name and in case the demat account is joint, the applicant needs to be the first /primary holder of the demat account.
And in above scenario, Mr. X should be first /primary holder of the demat account in order to get benefit of policyholder quota.

Ok got it @ K.Atar

Can Policy holders apply in HNI category or only max 2 lakhs like Retail category.

Hi @lokesh chiru I am holdi adami wilmar ipo. And looking fwd to buy lic ipo. Also i want to ask shall i buy more share of adani wilmar at 414. As i m looking fwd for long term buying.
Also pls share your insta id. Where i can contact you for more tips.

Hi, @lokesh chiru I am holdi adami wilmar ipo. And looking fwd to buy lic ipo. Also i want to ask shall i buy more share of adani wilmar at 414. As i m looking fwd for long term buying.
Also pls share your insta id. Where i can contact you for more tips.

what could be the price band expected??

Lic price band will be rs 2100....market cap at this rate will be approx 13.20 lakh crore...will list any where between 15 lakh to 18 lakh crore...so be ready with your funds 2 lakh in policy holder and 2 lakh in retail .....

Interesting analysis of LIC IPO by UBS securities.

Rs. 10 out of 100 saved by households (10% of total saving) in India is going towards LIC. This figure is much greater than the % of household saving deposited with the largest bank State Bank of India.

DIIs market ready kar rhe hai for LIC IPO... definitely market will touch 18200.. before listing of this IPO...
book your profits once 18000 is breached

Valid point

LIC khud biggest DII of India hai.

Hey Any Review About Kotak Securities?
Especially How Is Their API?