LIC Press Conference Highlights: Life Insurance Corporation on April 27 invited the media for a conference at 12.30 pm on the forthcoming IPO. The much-awaited issue of the state-run insurance behemoth is set to open on May 2 for anchors and on May 4 for subscription, the sources said a day earlier, adding that the IPO will likely close on May 9. They said there will be no greenshoe option for the IPO priced at Rs 902-949, with a discount of Rs 60 for policyholders. Employees and retail investors will be given a Rs 45 discount. Besides policyholders and shareholders, the shares will be allocated this way: 50 percent for qualified institutional buyers (QIBs), 35 percent for retail buyers and 15 percent for non-institutional investors. With the revised price band, the government now expects to raise up to Rs 21,000 crore from selling a 3.5 percent stake in LIC, a third of the original expectations and a billion short of the original projection.
The Securities and Exchange Board of India on April 25 gave its nod to the updated draft red herring prospectus, which lists a 3.5 percent stake sale instead of five percent as mentioned in the previous draft papers. The revised DRHP was submitted before the market regulator last week. The red herring prospectus will be submitted by April 27.
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LIC IPO Press Meet Live: Fair and attractive valuation to draw retail investors significantly: DIPAM secretary
TuhinKantaPandey, secretary of the department of investment and public asset management (DIPAM), on 27 April said the government expects significant retail participation for the public issue of country's largest insurer,Life Insurance Corporation of India (LIC).The government has taken extensive feedback from merchant bankers to determine valuation,Pandeysaidspeaking at a press conference in Mumbai on 27 April.According to theDIPAMsecretary,LICvaluation is “fair and attractive” and the decision to listLICwas after taking into account factors like market demand, reduced mkt volatility, domestic flows andLICperformance.The decision to list Life Insurance Corporation of India (LIC) was taken after considering market demand, reduced market volatility and company's performance,Pandeysaid. Further, there is no plan to bring any follow on public offer (FPO) in the next one year,Pandeyadded.Pandeysaid market regulator, Securities and exchange board of India,SEBIhas granted exemption for dilution of shares.
LIC IPO Press Meet Live: DIPAM secy Tuhin Kanta Pandey on FPO for LIC
DIPAM secy TuhinKantaPandey said, "We aren't going to bring in any otherFPOforLICin the next one year." According to Sebi rules, companies can’t carry out a follow-on public offer (FPO) for six months after the IPO.
LIC IPO Press Meet Live: LIC to list on stock exchanges on May 17; check all the important dates and numbers here
India's largest insurer LIC is likely to list on the stock exchanges on May 17, a week after its bumper initial public offering (IPO) closes.
The government is selling over 22.13 crore shares in LIC at a price band of Rs 902-949 a piece in the initial public offering, which opens on May 4 and closes on May 9.
As per the final papers filed with SEBI, the allotment of shares to the demat account of bidders will happen by May 16, post which LIC would commence trading of equity shares in the stock exchanges and list "on or about May 17".
While anchor investors will bid for the share sale on May 2, the issue would open for subscription of institutional and retail buyers on May 4 and close on May 9.
The government is selling 22,13,74,920 shares in Life Insurance Corporation (LIC), aiming to raise around Rs 21,000 crore. Up to 15,81,249 shares and 2,21,37,492 shares are reserved for employees and policyholders.
Over 9.88 crore shares are reserved for Qualified Institutional Buyers (QIBs) and over 2.96 crore shares for non-institutional buyers.
While retail investors and LIC employees will get a discount of Rs 45 per share, LIC policy holders bidding in IPO would get a discount of Rs 60 a share.
"Bids can be made for a minimum of 15 equity shares and in multiples of 15 equity shares thereafter," the LIC said in the Red Herring Prospectus approved by SEBI.
LIC IPO Press Meet Live: 'This is LIC 3.0': Chairman sounds war cry ahead of IPO launch
Life Insurance Corporation chairman hailed the state-run insurer that has been losing market share to private players as LIC 3.0on April 27 ahead of its initial public offering that opens for subscription on May 4."The time has come for LIC to be listed; I believe all LICians will work together to make it a huge success, and from now on we will call it LIC 3.0," said MR Kumar."LIC struggled in the first two decades to sell insurance in India. Then it gathered momentum in the 70s and 80s. That was LIC 1.0. Then it adapted to the competition, which was LIC 2.0. And now this is LIC 3.0," said Kumar. Read more here
LIC IPO Press Meet Live: DIPAM Secy Tuhin Kanta Pandey on IDBI Bank
BothLICand governmenthave decided to cede management control fromIDBIBank. Process for this has been set into motion.
LIC IPO Press Meet Live: LIC IPO is right-sized and will not crowd out capital and monetary supply, says DIPAM secretary
The much-anticipated initial public offering (IPO) of Life Insurance Corporation of India willnot crowd out capital and monetary supply, saidTuhinKantaPandey, secretary at department of investment and public asset management (DIPAM), at a press conference on April 27.The IPO will open for subscription on May 4 andthe government will sell 3.5 percent stake in the range of Rs 902-949 per share.Pandeysaid even after the reduced size,LIC'swill be the largest IPO in India so far. He also expected strong retail participation in the issue.He added that the government wants to championLICas a long-term value creator in the equity market.Pandeysaid, "This is right-sized considering the capital market environment and will not crowd out capital and monetary supply, given the current environmental constraints.TheLIChas filed the red herring prospectus for its IPO with the price band set at Rs 902-949 per share.
LIC IPO Press Meet Live: LIC likely to raise Rs 5,630 crore through pre-IPO placement of shares
Life Insurance Corp of India,on course itsRs 21,000-crore Initial Public Offer (IPO), aims at raisingup to Rs 5,630 crore on the upper price band through a pre-IPO placement of shares.The IPO will be a pure offer for sale of up to 221.37 million shares. The firm reserved around 59.29 million shares for the anchor investor portion. Employee reservation portion is at 1.58 million while policyholder reservation at 22.14 million. QIB portion set at 98.83 million.The anchor investment will open on May 2 and the IPO will open for subscription on May 4. It will close on 9 May. The basis of allotment will be on May 12 and shares will be credited on the demat accounts on May 16. The company plans to list on exchanges on May 17.India's largest IPO, which slashed around 60percent of its issue size due to poor market conditions, earlier announced its price band at Rs 902-949 a share.With this, LIC will become the country's fifth most-valued listed firm, with a market cap of over Rs 6 trillion, according to calculations byMoneycontrol. Globally, it will rank 186th in terms of market cap. Read more here
LIC IPO Press Meet Live: Valuation based on the circumstances and need of listing, says MR Kumar, LIC Chairperson
MR Kumar, LIC Chairperson said that the valuation is based on thethe circumstances and need of listing. Thefurther dilution by governmentin LIC is still to be discussed. It isunlikely that we will divest more in the near future.The share of surplus for participating will move from 5 percent To 10 percent. He added that how much more government will divest is not decided.Over a period of time, we should be able to reach a private industry margin of 20-25 percent.
LIC IPO Press Meet Live:
LIC IPO to enhance value for investors in long term, says DIPAM secy
LIC IPO Press Meet Live: LIC IPO to be biggest in India despite reduced offer size
DIPAMsecyTuhinKantaPandey, said, "Even after the reduce size of₹21,000 crore, the LIC IPO will initially be the biggest ever IPO in the country," He further said, "This is right-sized considering the capital market environment and will not crowd out capital and monetary supply, given the current environmental constraints."
LIC IPO Press Meet Live: Even after reduced size, LIC will be largest IPO, says DIPAM secy Tuhin Kanta Pandey
LIC IPO Press Meet Live: Price band, issue size; check details here
IPO open from May 4-9
Band Rs 902-949/share
Anchor Quota on May 2
Issue size of Rs 20,557 cr
Rs 60 discount for policyholders
For retail & employees, discount of Rs 40
LIC IPO Press Meet Live:
Themuch awaited LIC IPOwill finally be open from May 4-9 with 3.5% of the equity on offer for subscription & discounts for policyholders and retail investors.
LIC IPO Press Meet Live: The LIC IPO Press conference begins
LIC IPO Press Meet Live: All you need to know about the LIC IPO
TheLICpress conference will begin shortly. Here's all you need to know about the LIC IPO
- The price band for theLICIPO has been set at Rs 902 to Rs 949.
- India now expects to raise up to $2.74 billion from selling a 3.5 percent stake inLIC, a third of the original expectations and a billion short of the original projection.
- At the new rate, the government could raise $2.61 billion at the lower end of the price band.
- LICvaluation is now at close to Rs 6 lakh crore, from the earlier Rs 17 lakh crore expected.
- LICIPO is set to open on May 2 for anchor investors and for subscription on May 4, and close on May 9.
- Employees and retail investors will be given a Rs 45/share discount, whileLICpolicyholders will get Rs 60/share discount.
- Besides policyholders and shareholders, the remaining shares will be allocated thus: 50 percent for qualified institutional buyers (QIBs), 35 percent for retail buyers and 15 percent for non-institutional investors. Of the 50 percentQIBallocation, 60 percent will be reserved for anchor investors.
- There will be no green shoe option in the IPO.
- Roadshows for prospective investors and analysts acrossAhmedabad,Bengaluru, Kolkata, Mumbai, New Delhi and Rajkot will end by this week. Sources told Reuters that online roadshows for investors in other regions will continue.
LIC IPO Press Meet Live: LIC IPO is quite cheap at current valuation, we may apply: Samir Arora of Helios Capital
Samir Arora, Founder & Fund Manager, Helios Capital, thinks that the market hasn’t discounted the macros yet and inflation, coronavirus along with the Russia-Ukraine war still remain an issue.In an interview to CNBC-TV18 on April 26, Arora also talked about the banking space, LIC IPO and the new-age technology firms.Read more here
LIC IPO Press Meet Live:
LICconference to be begin shortly. AlsoFollow our LIVE blog for the latest updatesMarkets
LIC IPO Press Meet Live: Waning demand for LIC IPO highlights fiscal challenges for Modi
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 Saturdayapproved sellinga 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 MinisterNarendraModineeds 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.“I am absolutely grateful to the people of India,” Finance MinisterNirmala Sitharamansaid in an interview in Washington last week, while outlining some of her government’s welfare programs. “Unless the people are going to stand up and say ‘right, we have to survive this,’ it’s not going to be easy.” Read more here
LIC IPO Press Meet Live: LIC eighth largest life insurer globally in terms of total assets
LICis the eighth largest life insurer globally in terms of total assets. As of fiscal 2021, it holds around $507.33 billion in total assets.Currently, China's Ping An Insurance is the largest insurer in terms of total assets, followed by Germany'sAllianzSE and France-based AXA SA.As of December 2020, Ping An Insurance holds around $1.38 trillion in total assets, whileAllianzSE and AXA SA have $1.27 trillion and $965.51 billion, respectively. US-basedMetlifeInc, Japan's Nippon Life Insurance, Britain's Aviva PLC and China Life Insurance Co have total assets of $795.15 billion, $705 billion, $657.34 billion and $616.29 billion, respectively.
LIC IPO Press Meet Live: LIC to become fifth most-valued listed firm in India
Life Insurance Corp Of India (LIC) will become the country's fifth most-valued listed firm, with a market cap of over Rs 6 trillion, according to calculations byMoneycontrol.Globally, it will rank 186th in terms of market cap.Earlier, CNBC TV18 reported that the price band for the initial public offering ofLIChas been set at Rs 902 to Rs 949. On the upper band of the share price, the firm will be valued at Rs 6.01 trillion.Reliance Industries Ltdis the most valued firm with a market cap of Rs 18.23 trillion followed byTata Consultancy Services Ltd(Rs13.12 trillion),HDFC Bank Ltd(Rs 7.58 trillion) andInfosysLtd (Rs 6.57 trillion).
LIC IPO Press Meet Live: Check how LIC's insurance agents are gearing up for the IPO and competing with digital distribution channels
Indians across generations have been used to dealing with the ubiquitous Life Insurance Corporation of India (LIC) agent, who has pursued and cajoled them into buying life insurance policies – often their first-ever investment.And as LIC gears up for its initial public offering (IPO) that is slated to openon May 4, part of the focus will also shift to its large army of agents. With the insurance colossus going public, it will be important for the company to appeal to a wider - and younger - customer groupsto grow its business and retain the edge over competition. On their part, LIC's agentsseem unfazed, and secureabout their role in the emerging distribution landscape.Read more here
LIC IPO Press Meet Live: SEBI considers exempting LIC from mandatory 5% float in IPO
The government, which has timetill May 12 tolaunch the LIC IPO without filing fresh papers with the market regulator, will not launch a follow on public offering (FPO) for a year after listing even as the watchdog considers exemption sought from compulsory five percent listing on float, sources told CNBC-TV18.Under the current rules, if the post-issue capital of a company calculated at the offer price is above Rs 1 lakh crore, it's required to issue shares worth Rs 5,000 crore and five percent of equity.If the offer is less than that calculated under this norm for large companies, the government will need exemption from the watchdog.The five percent IPO norm could result in a Rs 35,000 crore issue, and it is unlikely that the market would have the appetite for a public issue of that size.This comes after Bloombergreportedon April 22 the size of the IPO may be slashed by 40 percent from Rs 55,000-60,000 crore to Rs 30,000 crore.Read more here
LIC IPO Press Meet Live: Here are 10 things to know of the mega LIC IPO
LIC IPO Press Meet Live: Government revises price band to Rs 902-949, offer likely to open on May 2
The price band for the initial public offering of Life Insurance Corporation of India (LIC) has been set at Rs 902 to Rs 949, with a discount of Rs 60 for policyholders, CNBC TV18 learnt from government sources on April 26.At the upper end of the price band, the government may raise up to Rs 21,000 crore.For retail and employees, the discount will be of Rs 40, the persons privy to the development told the news channel.The much-awaited IPO of the state-run insurance behemothisset toopen on May 4, the sources said a day earlier, adding that the issue is likely to close on May 9.The anchor book for the offer is expected to open on May 2, they added, further noting that there will be nogreenshoeoption in the IPO. Read more here
Hello and welcome to the live coverage of the LIC press conference on the forthcoming IPO. Also catch the action from the D-street. Stay tuned to this blog for all the live updates.
