LIC's shares fell to their fresh 52-week low on the NSE on June 20 as the investment banker’s research wing initiated coverage on the stock with an 'outperform' rating
LIC shares have fallen 25 percent from the issue price of Rs 949 per share after listing on May 17. The stock has seen an average decline of around 1.3 percent per session in 19 trading sessions. If the anchor investors, a majority of whom are MFs, cut losses, there will be a further slide.
The lock-in period for anchor investors is to end on June 13, which will allow such investors to sell their existing shares in the market
Experts believe that personal savings and awareness regarding insurance will increase, enabling the sector to outperform in the long run and will indirectly benefit LIC
Given stock market volatility, LIC's debut may be muted, but experts advise investors not to panic and hold on to the stock from a medium- to long-term perspective.
Considering the prevailing market scenario, experts expect a soft listing between +/- 5 percent to the offer price but they advise investors to look at the stock for long term only.
LIC being a massive company with a considerable market share will continue to be attractive in the listed space, even though the insurance industry is becoming competitive with an increasing number of listed players
Mutual funds, global investment firms, National Pension Schemes, and other insurance companies made a beeline to subscribe to LIC IPO’s anchor book. But investors were chosen with care
The reception of the IPO by foreign investors has been muted so far. The anchor portion of the IPO saw only 18.08 percent of the more than 59 million shares on offer
Key business strategy of LIC is to capitalize on the growth opportunities in the Indian life insurance sector wherein the total premium for life insurers is forecasted to grow at 14-15 percent CAGR over the next five years.
Analysts have also largely recommended investors to subscribe to the public issue.
LIC's IPO is priced at a significant discount to private peers. Why so?
LIC deserves to be valued cheaply than professionally-managed, well-regulated, and transparent insurers -- just like public sector enterprises, including banks
Its internal assessment in 2013 put a value of Rs 70,000 crore on its real estate and art holdings. Imagine how much Rs 70,000 crore would have appreciated in 2022
Abu Dhabi Investment Authority is also among those in discussions to participate in Life Insurance Corporation of India’s first-time share sale
Tuhin Kanta Pandey also said they expect strong retail participation in the issue.
The discount will be Rs 40 for retail and employees, sources privy to the development told CNBC TV18
Sebi has given its nod to the updated DRHP that lists a 3.5 percent stake sale, as against 5 percent as mentioned in the previous draft papers.
The government is targeting to raise Rs 21,000 crore by selling a 3.5 percent stake, or around 22 crore shares, in the Life Insurance Corporation of India
The government, which wholly owns the insurance sector behemoth, is seeking to raise Rs 21,000 crore at a valuation of Rs 6 trillion.
LIC’s net profit does not capture its true earning potential, to improve as profit-sharing gets fully aligned in favour of shareholders by FY25
The government's sale of five per cent stake in Life Insurance Corporation (LIC), was originally planned to be launched in March, but the Russia-Ukraine crisis has derailed the plans as stock markets are highly volatile.
Holding 17 percent of the over Rs 80.7 lakh crore dated government securities, maturing by 2061, the Reserve Bank is the second-largest holder of government debt, while led by public sector banks, commercial banks collectively own around 40 percent. Other insurers cumulatively own only 5 percent.
Optimist projections of LIC’s bumper listing aside, stock market volatility coupled with international adverse developments could rain on the government’s parade
LIC’s DRHP highlights many hits, but there are a few misses that should not be overlooked by investors