LIC IPO subscribed 1.8x a day ahead of close, big push from policyholders

 The policyholder quota was subscribed over 5 times, employee portion 3.8 times and retail individual investor quota 1.6 times.

Life Insurance Corporation’s (LIC’s) initial public offering (IPO) was subscribed 1.79 times on Sunday, a day before its close. The LIC policyholder quota was subscribed over 5 times, employee portion 3.8 times and retail individual investor quota 1.6 times. The institutional investor and wealthy investor have seen subscriptions of 67 per cent and 1.24 times, respectively.

Over the weekend, the IPO saw 1.2 million investors submit their bids worth over Rs 6,000 crore, said investment bankers. The total applications received by the LIC IPO have reached 5.9 million, highest-ever for a public offering in the domestic market. LIC was the first IPO to remain open on weekends. The government has set the price band for the IPO between Rs 902 to Rs 949 per share, with an additional discount of Rs 45 and Rs 60, for retail and policyholders, respectively. At the upper-end of the price-band, LIC will have a market value of Rs 6 trillion, making it India’s fifth most valuable firm.

LIC IPO fully subscribed on day 2 of opening; offer closes on May 9

 Sees participation from 3.6 mn individual investors; policyholders lead

State-owned Life Insurance Corporation of India’s (LIC’s) initial public offering (IPO), the largest ever in the domestic market, was fully subscribed on Thursday — the second day of the issue. The IPO, which will remain open till Monday, has so far generated bids worth Rs 20,744 crore, including the Rs 5,628 crore raised from anchor investors. Small investors have poured in over Rs 12,000 crore in the IPO. Sources said the issue had seen participation from 3.6 million individual investors from across India and expectations were that the total applications figure would hit a record 10 million.

At the end of day 2, the policyholders’ quota had seen over three times more demand than the shares on offer, while the employees’ portion was subscribed 2.22 times. The retail investor quota, the largest of the lot, was subscribed 93 per cent. The qualified institutional buyer (QIB) and high networth individual (HNI) categories were, on the other hand, subscribed 40 per cent and 47 per cent, respectively. Most bids in the QIB and HNI categories are expected to come on the last day of the issue….LIC IPO

LIC IPO opens on May 4. Should you subscribe? What brokerages suggest

 While LIC policyholders are entitled to Rs 60 discount over the issue price, the retail investors will be offered the issue at a discount of Rs 45 per equity share

The Rs 21,000 crore initial public offer (IPO) of Life Insurance Corporation of India LIC IPO Date will open for subscription on May 4. Ahead of the IPO, the public sector insurance behemoth has raised Rs 5,627 crore from anchor investors, allotting around 59.3 million shares to 123 investors at Rs 949 per share.

While LIC policyholders are entitled to Rs 60 discount over the issue price, the retail investors will be offered the issue at a discount of Rs 45 per equity share. The minimum bid lot is 15 shares and in multiples of 15 equity shares thereafter. So, should you invest in India’s largest public offer till date? Here’s what brokerages suggest.

Angel One

Valuations factor in most of the negatives. Expected improvements in product mix and greater transfer of surplus to shareholders account over the coming years are expected to drive profits from current low levels, which along with cheap valuations provide comfort. Moreover, the discount of Rs 45 and Rs 60 for retail investors and LIC policyholders makes the issue more attractive for them. Hence, we are assigning a subscribe recommendation.

LIC board to meet Tuesday for IPO dates, issue likely opens May 4

 The government will sell its 3.5 per cent equity in LIC for Rs 21,000 crore, valuing India’s largest insurer at Rs 6 trillion

The board of Life Insurance Corporation of India (LIC) will meet Tuesday to consider the launch dates for the company’s initial public offering (IPO). The meeting will also consider the discount to be offered to policyholders, employees and retail shareholders.

The board will consider the proposal of the issue opening date of May 4 and closing date of May 9, an official said. The reservation for the insurer’s employees would also be taken up by the insurer’s board. Once approved by the board, the issue dates, reservation and discounts would be announced on Wednesday, and mentioned in the red herring prospectus (RHP).

LIC’s board, on Saturday, approved reducing the issue size of the LIC IPO Date to 3.5 per cent from 5 per cent proposed earlier. The centre would now dilute 3.5 per cent of its shares in LIC for Rs 21,000 crore subject to regulatory approval, valuing LIC at Rs 6 trillion The government filed LIC’s draft papers with the Securities and Exchange Board of India (Sebi) in February, aiming to raise around Rs 65,000 crore at a market value of Rs 12 trillion as it dilutes its 5 per cent stake. Even at Rs 21,000 crore, the IPO will be the biggest-ever and exceed the record of Rs 18,300 crore by Paytm….

Waning demand for LIC IPO highlights fiscal challenges for PM Modi

 Life Insurance Corporation of India’s board on Saturday approved selling a 3.5% stake for about Rs 210 billion ($2.8 billion), far lower than the Rs 500 billion estimated before Russia invaded Ukraine

India’s decision to go ahead with a much-reduced target for its vaunted life insurer’s initial public offering, as skittish investors continue to pull money from the South Asian nation, is adding to the risks threatening the nation’s fiscal deficit target.

Life Insurance Corporation of India’s board on Saturday approved selling a 3.5% stake for about 210 billion rupees ($2.8 billion), far lower than the 500 billion rupees estimated before Russia invaded Ukraine. Anchor investors had been reluctant to commit as the war eroded demand for equities, according to people with knowledge of the matter, with foreign funds withdrawing more than $16 billion from Indian stocks this year.

Prime Minister Narendra Modi needs inflows because crude oil prices — one of India’s largest imports — have surged. Costs have risen so much that it’s becoming unsustainable for the administration to keep charging taxes on fuel that have been key to bridging a budget deficit. Leaving pump prices high risks stoking inflation and potential social unrest that is already roiling neighboring nations as the region emerges from the pandemic….LIC ipo Date

LIC IPO gets Sebi approval; may see delayed launch over Ukraine crisis

 LIC’s IPO is one of the fastest to get Sebi approval; the insurer had filed its DRHP on February 12.

India’s markets regulator has approved the public listing of Life Insurance Corporation of India (LIC), sources told ‘Business Standard’ on Wednesday as the war in Ukraine casts a shadow over the state-owned firm’s IPO timing. The government is looking to sell a 5 per cent stake, or 316 million shares, in the insurer through the IPO. Investment banking sources said Sebi issued the so-called final observations on Tuesday evening.

LIC’s IPO is one of the fastest to get Sebi approval; the insurer had filed its DRHP on February 12. Once a DRHP obtains final approval, the company can launch its share sale. However, LIC may not launch its IPO immediately given the volatile market conditions. Investment bankers said they would want to wait till the market sentiment improves.

Benchmark indices have come off 9 per cent this year amid a surge in global oil prices following Russia’s attack on Ukraine. The government is planning to divest 316.2 million shares, 5 per cent stake, in IPO. The government, which holds 100 per cent stake in LIC, was looking mop up between Rs 60,000 crore and Rs 75,000 crore in the IPO. This would peg LIC’s value between Rs 12 trillion and Rs 15 trillion.

LIC share sale may fetch govt up to Rs 65,000 cr; DRHP filing likely today

 High testing, rural-urban mobility, disbanded ground force reasons behind high daily caseload

Insurance behemoth Life Insurance Corporation of India’s (LIC’s) initial public offering (IPO) could garner anywhere between Rs 60,000 crore and Rs 65,000, said people with direct knowledge of the development. At the time of writing, investment bankers were giving the final touches to the company’s draft red herring prospectus (DRHP), which is expected to be filed with the Securities and Exchange Board of India (Sebi) on Friday. LIC’s IPO will be India’s largest-ever share sale, surpassing digital payments firm Paytm (One97 Communications), which raised Rs …Read More

HDFC Bank is the most valued brand in India, LIC takes second spot: Survey

The top rung is unchanged but overall brand value growth slows to 6% in 2019 from 34% in the previous year: BrandZ

HDFC Bank beat the crowds to top the list of 75 most valued brands in India, keeping its position intact from the previous year. At second and third spots, too, the old order held its grip. Public sector insurer Life Insurance Corporation of India (LIC) and IT major Tata Consultancy Services (TCS) retained their second and third ranks in the list of most valued Indian brands.

The big change, however, has been in the overall growth of brand values in the BrandZ 2019 Most Valuable Indian Brands, a report by WPP and Kantar Millward Brown. The total value of the top 75 brands increased to $228.2 billion, growing at a moderate 6 per cent over 2018, far slower than 34 per cent recorded the previous year. The report calculates valuations and ranking by combining companies’ financial data with consumer insight and opinion.

While brands grappled with many challenges this year, a few managed to push valuations up significantly. With a 34 per cent jump in brand valuations, Jio led the band of top risers, a diverse set of brands on the list. Preeti Reddy, CEO South Asia, Insights Division, Kantar, said, “They (Reliance Jio) have built an entire ecosystem around Jio which is feeding into each other and they continue to be disruptive.” Among the other brands that increased their valuations at a significant clip are Infosys, TCS, Maggi, Ola, and others….

Nokia 5 with 3GB RAM in India for Rs 13,499

HMD Global, which owns Nokia-branded phones, on Monday announced that “Nokia 5” will be available in India in a new configuration with 3GB RAM at Rs 13,499.

The device features 5.2-inch IPS HD display with sculpted Corning Gorilla glass and comes with 13MP rear camera with phase detection auto-focus camera (PDAF) and 8MP front camera with auto-focus.

“Nokia 5 has already forged a reputation for being a beautifully-crafted phone which punches well above its weight. Now we have added more memory so fans can get enhanced performance in the same precision-engineered design,” Ajey Mehta, Vice President India, HMD Global, said in a statement.

The device is powered by Qualcomm Snapdragon 430 mobile platform and has internal memory of 16GB that can be expanded up to 128GB via microSD card slot. It sports 3000mAh battery.

The 3GB Nokia 5 will be available for a week on Flipkart from November 7. The device will also be available in selected retail outlets from November 14.

HDFC Life IPO opens today: From anchor investment to mkt share, all you should know

The price band of the IPO has been fixed at Rs 275 to Rs 290 per equity share

1. 

HDFC Standard Life Insurance, one of the top three private life insurers in profitability, will open its Rs 8,700-crore initial public offering (IPO) today and close it on Thursday. This will be the fourth IPO of an HDFC arm.

The HDFC Life IPO is an offer for sale (OFS), consisting of 191,246,050 equity shares by HDFC Life and up to 108,581,768 equity shares by UK-based Standard Life.

Here are key things to know about the company’s IPO:

1) Super demand from anchor investors
We have received superlative response from anchor investors, including a global investor who has never invested in the Indian IPO market or any Indian insurance IPO, informed Chaudhry. The company will share the details of anchor book investment on Monday.

2) Open to acquisition of small, big players

Chaudhry also said the company is open to any kind of acquisition, including of Max Life if the “structural issues” that hampered its earlier deal are resolved.

“If the right kind of business comes along, we will definitely look at it. We are not saying that we will look to gobble up only small players. There could be some large players also which could come to the table,” he said.

3) Business overview

The company’s flexibility and ability to adapt to changes in the Indian life insurance industry has allowed business to grow and profitability to improve. During FY15-17, the total premium saw a CAGR of 14.5%, driven by a CAGR of 12.6%, 43.6% and 7.3% in individual New Business Premium (NBP), group NBP and renewal premiums, respectively. In addition, the company improved its Value of New business (VNB) margins from 18.5% in FY15 to 22% in FY17 by bettering cost efficiencies, increasing persistency ratios and selling a balanced product mix.

4) Dividends

The company paid dividends (including dividend distribution tax) totalling Rs 760 crore between the first in FY14 and FY17. Chaudhry informed the next dividend will be announced in December and the new shareholders of the company will be eligible to receive that.
5) LIC losing market share?
In the presentation, Chaudhry noted that the private sector gained higher market share than LIC, for the first time in FY16, after regulatory changes in FY11. LIC’s market share slipped below 44% during the first half of FY16 according to the Individual Weighted Received Premium (WRP), he said, quoting IRDAI and Life Insurance Council.
6) Key risks
i) Given the fact that each bank can now act as a non-exclusive corporate agent for up to three life insurers, three general insurers and three health insurers. Thus, the company’s bancassurance arrangement with HDFC Bank is no longer exclusive in nature, and the latter has entered into bancassurance arrangements with other life insurers. | READ MORE