Can you bid for both retail and policyholder quota in LIC IPO?

New Delhi: The primary market is optimistic about the first public offer (IPO) of the Life Insurance Corporation ( LIC) of India The issue of LIC will be available for subscription from May 4 to 9, 2022.

The IPO will be a complete offering to sell (OFS) from the Indian government. India will let go of 22.13 million equity stakes in the firm in order to raise Rs 20,557 crore.

LIC has set an amount of 902-949 per piece, with a minimum size equal to 15 equity shares. The company has declared a discount of Rs 60 per share for policyholders, while retail bidders will be offered discounts of up to 45 Rs per share.

LIC has set aside 10 percent equity shares for customers of the policy, while the retail bidders are allocated 35 percent in the net offer.

In response to the question, the market experts explained that investors can apply for both the retail and policyholders categories, with an amount that is Rs. 4 Lakh (Rs 2 lakh for each category, minus the discount for each category).

“With the LIC IPO policyholders can take advantage of an added benefit in that they can apply for IPO under two different categories – policyholders and retailers which will increase their chance of receiving an allotment,” explained Varun Sridhar, chief executive officer, Paytm Money..

Both categories of applicants can bid up to two lakh rupees. So, policyholders who are applying under both categories can make the maximum bid of four lakh rupees, he said.

It is interesting to note that if an individual is an employee who is currently eligible for LIC the company, they may offer an additional amount of Rs 2 lakh in the category of employees. Employees can avail of discounts of up to about Rs 45 for each share.

In the case of an investor who is retail is a LIC employee and also a policyholder, the maximum price allowed is between Rs 6 lakh or two lakh in the three categories, stated Sridhar.

Vijay Singhania, Chairman, TradeSmart declared that the maximum bid limit for each category is 2 lakh, minus discount. “Allotment for the event of an oversubscription be contingent on the procedure established by SEBI,” he added.

If an investor wants spend more than 2.25 lakh, then he is able to bid in the non-institutional buyer (NII) category however, he is not making a bid as a retail buyer. Bidding under both two categories (retail as well as NII) could result in a decision to reject both.

The first public offer (IPO) by the state-owned Life Insurance Corporation of India (LICI) will be open to investor anchors on Monday. To the public at large, it’ll be open from May 4 until May 9. In the hopes of raising around 21,000 crore The government plans to reduce 3.5 percent stake.

Can you bid for both retail and policyholder quota in LIC IPO?
Can you bid for both retail and policyholder quota in LIC IPO?

Its price range is set at Rs 902- Rs 949 for equity shares. The general public can participate in the IPO, the IPO will be launched on March 4. The LIC Initial Public Offering will be listed on the market on the 17th of May.

The planned maiden public offering which is scheduled to be among the largest IPOs in the nation it has received over an investment of Rs13,000 crore pledges by anchor investors. This is which is more than twice the amount of shares that are offered to these investors, as per the report released by Mint.

Up to 50% in the deal is reserved to qualified institutional placings (QIPs) that include anchor investors. 35 percent is being made available to retail investors, and 15% is reserved for high-net-worth individuals 10 percent is reserved for insurance policyholders.

Five key points regarding how to make the most of LIC IPO:

  1. Following the IPO, LIC will be managed by a board that is professional, comprising nine directors that are independent and have already been appointed. LIC the managing director Siddhartha Mohanty said the post of chairman will remain up to 2024, and then be replaced by CEO and MD according to the PTI report.
  2. With the most market dominance in the life insurance industry in India The LIC has a total of Rs40 lakh crore in the assets under management (AUM) as well as reserves worth Rs30 lakh crore PTI said.
  3. In the past, the government made an announcement of the government would announce an IPO capacity of 5 percent however it was cut to 3.5 percent this month because of market conditions.
  4. The value of the company’s embedded (or measure of the value of shareholders in a consolidated insurance company – was calculated at Rs5.4 million in the month of September. The analysis was carried out by the international actuarial firm Milliman Advisors.
  5. The LIC Initial Public Offering is expected to be a significant contributor to the disinvestment funds of the government during this fiscal year or FY22. The government had estimated disinvestment earnings at Rs65,000 crore. This is an increase from the amount of Rs13,531 crore during the previous fiscal.

the IPO of LIC: initial public offer by Life Insurance of Corporation got the attention of investors who are large and wanted double the amount of the Anchor Book, Bloomberg said, citing sources. LIC will announce its anchor book worth Rs5600 crore as the nation’s biggest public offering of over 21,000 crores later this afternoon.

Life Insurance Corporation (LIC) has established its price range in the Initial Public Offering (IPO) from Rs902 to the equity share of Rs949. The public offering begins May 4 and remains open to bidders until May 9.

The Singapore-based GIC Pte and Norway’s sovereign wealth fund are among the investors who anchor, Bloomberg reported, citing sources. The government has raised around Rs20,557 crore after diluting 3.5 percent of its stake completely via an offer for sale which will remain the largest public offering of its kind to time.

LIC The IPO will be a simple offer to sell. Of those 22.13 crore shares that are offered for sale, 5.93 crore shares are reserved for the anchor investor portion. The employee reservation portion is 1.58 million and the policyholder reservation is for policyholder reservation is 22.14 million.

The shares will be reserved exclusively for Qualified Institutional Buyers (QIB) fifteen percent of the shares are reserved for non-institutional buyers, and the remaining is reserved to be reserved for retail investors. The policyholders will receive discounts of up to 60 rupees on equity shares.

Numerous brokerages have suggested that you subscribe to IPO. LIC has been offering Life insurance to India since 1965 and is the biggest life insurance company in India.

“LIC has a very strong market share 61.6 percent based on the Total Premium, and 61.4 percent based on the New Business Premium at 9MFY22. But, LIC has been witnessing decreases in market share compared in the hands of private firms. Market share of LIC (based by premium) for group business decreased from 81 percent in FY16 and 74% by the end of Q3FY22. Meanwhile, for individual business, it dropped from 56 percent to 43 percent,” Geojit wrote in a note. Geojit in a report.

“Due to a higher mixture of non-linked and participatory insurance policies LIC offers a lower profit margin, 9.9 percent at the end of FY21 when compared with private players, which is in the between 20 and 25 percent. At the top price range at Rs.949, LIC is available at a P/EVPS (Embedded Value per Share) of 1.1x which is 65 percent discount when compared to the median value that private life insurance providers. Although headwinds like a falling market share, lower persistent ratios in the short term and low margins warrant a lower price than other private life insurance companies, its current price is appealing due to its substantial market presence and the increase in profit due to the change in the rules for distribution of surplus. We therefore assign an “Subscribe” rating for the short to medium long-term basis,” the brokerage said.

LIC IIPO Update: As LIC IPO is scheduled to begin next week and this week, the State Bank of India (SBI) in a tweet invited its customers to open Demat or trading accounts with YONO prior to the grand opening of the IPO. This past Saturday, SBI tweeted saying, “Start your journey to invest now!” In the latest tweet it said that the SBI announced that it will “foster your investment by investing in SBI securities.”Also take a look this article: LIC the IPO to list on the Bourses on May 17th; Key Dates to Remember

Prior to this announcement, the SBI had released an identical notification for investors in LIC’s IPO via SBI Securities Demat as well as trading accounts. To start their investment, investors have to follow certain steps that the SBI stated. Also Read – LIC IPO | Explained | LIC Revises IPO Price Band, Should You Buy Or Not? Know What Experts Say

How do you go about it? In order to invest in LIC IPO, one needs to sign in on YONO and then click the section ‘Investments’ and start their Demat and trading accounts. Once that’s done, investors will be able to effortlessly bid for LIC IPO.

Investors should be aware that LIC will begin its IPO on the 4th of May in 2022. The IPO will be available to subscribe until May 9th 2022. This IPO will be open to anchor investors from May 2nd 2022.

In the case of the uninitiated public, the LIC IPO is the possibility of selling up to Rs . 20,557 crore, whereby there is a possibility that the Central government will offer to sell its 3.5 percentage stake. A total that is 22.10 million equity shares will be made available under the IPO at the time of the issue.

LIC IPO This week will be the start of the long-awaited Life Insurance Corporation of India (LIC) IPO (Initial Public Offering). The LIC public offering will be open to investors to bid the following week, on May 4 and will close the 9th of May. Investors can participate in the public offering within the fixed price range of Rs 902-949 for shares that is equivalent to 21,008 crore at the top portion of the price band however, LIC has offered various discounts to investors. This increases the size of the issue to be around Rs 20,558 crore. The public offering of LIC is expected to be the largest ever recorded in the history of Dalal Street. In the days leading up to an LIC IPO opening, the timing of opening of the IPO trading has changed from 10 AM to 7 pm on all days.

The IPO is completely an offering for sale (OFS) through the Indian government. India and 22.1 crore shares were offered to investors. The issue is reserved for institutional buyers who are qualified, while 35 percent of the issue is reserved for investors who are retail. The majority of the issue is reserved for non-institutional investors. Investors can participate in the LIC IPO by purchasing a set of equity shares worth 15 and in subsequent multiples. Retail investors will receive an Rs 45 share discount on the LIC initial public offering and LIC employees. For LIC Policyholders, they will receive a 60-Rs for each share.

LIC Initial Public Offering: The mega initial share sale by the Life Insurance Corporation of India also known as LIC it is set to begin next week on May 4, and end the 9th of May. The auction to anchor investors scheduled to start on May 2nd, as the government aims to raise around $21,000 through the LIC initial public offering. The price band has been set at Rs 902-949 per equity shares, LIC has said in its prospectus, which is a red herring. But, these prices are applicable to all investors as policyholders, employees and retail investors can be offered a reduction of up to 60 rupees according to documents submitted to the SEBI. The LIC initial public offering is expected to go public on the 17th of May. DIPAM Secretary Tuhin Kanta Pandey was quoted in a statement on Friday.

LIC IPO: Discount for Policyholders

What most people in India might find appealing is the price discount LIC holders get when purchasing shares in the LIC Initial Public Offering. LIC policyholders will receive an offer of Rs 60 for investing on the IPO. A significant part of the LIC public offering which is expected to reach 22,137,492 equity shares, or 10% of its issue is allocated to LIC policyholders, as per the Red Herring Prospectus (RHP).

LIC Initial public offering: India’s largest insurer Life Insurance Corporation (LIC) is scheduled to launch its initial public offering , also known as an the initial public offering in the coming week. With the LIC initial public offering (IPO), the government looks to sell 3.5 percent from its share in the business in order to meet its targets for disinvestment in this fiscal. The public offering scheduled to raise 21,008.48 crore is an Offer for Sale (OFS) by the government of India and has reduced the LIC announcement down from the original goal of Rs 60,000 because of geopolitical worries. However, despite the smaller dimensions, LIC IPO will still be the largest IPO that has been held in India till the date.

These are essential factors investors need to be aware of prior to taking a stake into LIC IPO

  • LIC Date of IPO: The LIC Initial public offering will open to the general public and policyholders on May 4 and run through May 9, as per the company’s file with Sebi.
  • LIC IPO size: LIC is expected to make around 21,000 crore in its IPO in the upper part of the price range with a valuation of around Rs 6,00,000 crore. The embedded values are estimated to be around 540,000 crore.
  • LIC IPO Price Band: The price band of LIC IPO is set at between Rs 902 and the equity share of Rs 949 and includes discounts of Rs 60 for policyholders as well as a discounts of Rs 45 for retail investors and employees.
  • LIC Initial Public Offering GMP: According to market analysts, LIC IPO GMP today is at 92 rupees. Grey markets shares for LIC are trading at around twenty percent higher than they were yesterday. The previous Friday LIC IPO GMP was at Rs 72 for equity shares.
  • LIC Lot Size for IPO Maximum Investment: A bidder can invest at least 15 shares in a single lot and increments of 15 after that. The maximum number of lots is 14 and can be bought at the top end of the price range, because LIC has set a limit on investment of 2 lakh rupees for one investor.
  • LIC IPO subscriber quota For the first time in the nation company, the company has allocated 10% of IPO shares to policyholders who are eligible. The qualified institutional buyers will get access to 50 percent of the shares. Retail investors can purchase 35 percent shares. The remainder is reserved for non-institutional buyers.
  • LIC IPO Share Allotment date: The share allotment for LIC IPO is likely to be completed on the 12th of May
  • LIC The IPO Listing Date: Shares of India’s insurance giant LIC will go on the markets on May 17 DIPAM Secretary Tuhin Kanta Pandey said on Friday

LIC IPO: Should You Buy?

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Anand Rathi Communications: At the upper price levels, the LIC has valued the IPO at 1.11 times its embedded value with a market cap of Rs.6,002 billion which we believe is quite lower when we compared with the three listed peers like HDFC Life Insurance Co, SBI Life Insurance Co. and ICICI Prudential Life Insurance Co. where the average embedded value stood at Rs 3,105 billion and the average market capitalization-to-embedded value ratio arrived at 3.4 times. This makes the company very appealing for investors. With the biggest amount that could be a part of this IPO. With a well-diversified product range, and financial records with bright future prospects, we suggest a “Subscribe” rating for this IPO.

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