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 mega IPO opens for retail, institutional investors; to close on May 9

 LIC public offer, the country’s biggest-ever IPO, on Wednesday opened for subscription for retail and institutional investors.

LIC public offer, the country’s biggest-ever LIC IPO, on Wednesday opened for subscription for retail and institutional investors. The government aims to generate about Rs 21,000 crore by diluting its 3.5 per cent stake in the insurance behemoth. The LIC initial public offering (IPO), now open for retail and institutional investors, is set to close on May 9. LIC has fixed the price band at Rs 902-949 per equity share for the issue. The offer includes a reservation for eligible employees and policyholders. The retail investors and eligible employees will get a discount of Rs 45 per equity share, and policyholders will get a discount of Rs 60 per equity share.

The share sale is through an offer-for-sale (OFS) of up to 22.13 crore equity shares. The shares are likely to be listed on May 17. LIC has cornered a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions. Anchor Investors (AIs) portion (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share…LIC IPO Date

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 policyholders likely to get Rs 60 discount on shares, IPO opens May 2

 LIC IPO price band likely to be set at Rs 902-949 a share

The Centre is learnt to have set the price band for the initial public offering (IPO) of Life Insurance Corporation of India (LIC IPO Date) at Rs 902-949 a share, and may offer a discount of Rs 60 to the policyholders. Retail investors and the employees of LIC, on the other hand, may get a discount of Rs 45 on subscribing to the shares of India’s largest insurer, a senior government official said. The board of LIC has approved the discount to be offered to the three categories, reservations for policyholders and employees, and the issue dates, the official added.

The government may sell 221.3 million shares, or 3.5 per cent stake, in LIC through the offering. This would help the government garner Rs 21,000 crore, valuing the insurer at Rs 6 trillion. The Securities and Exchange Board of India has approved the reduction in the issue size, the official said. An exemption on lowering the issue size was required from the market regulator as the existing guidelines mandate a minimum offering of 5 per cent equity and Rs 5,000 crore worth shares for companies valued over Rs 1 trillion.

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

Kerala Assembly passes unanimous resolution against LIC IPO

 Chief Minister Pinarayi Vijayan, who moved the resolution in the Assembly, opined that leaving the insurance giant to the interests of private players would not be beneficial to the country

The Kerala Legislative Assembly on Wednesday passed a unanimous resolution, voicing concern over the Centre’s move to sell stakes in insurance behemoth LIC and urging it to retain the institution, which played a key role in the development of the nation.

Chief Minister Pinarayi Vijayan, who moved the resolution in the Assembly, opined that leaving the insurance giant to the interests of private players would not be beneficial to the country and hence the union government should revisit its decision. “The union government is trying to justify its act by propagating that only 5 per cent stakes will be sold through an Initial Public Offering (IPO) and that is not privatisation.

But it is clear that selling shares is the first step towards privatisation and that is the real objective of the government,” he said. He recalled that the LIC was nationalised with an aim to protect stakeholders from the exploitation of private companies and to ensure that insurance coverage was extended to the weaker sections and backward areas of the country…Read More

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