IPO IPO: LIC’s mega IPO performed as expected on the first day of the opening, with bidders from all categories rushing to book the issuance. According to NSE data, on Day 1 of the opening, 67 percent was subscribed to the IPO of the Life Insurance Corporation of India (LIC). The LIC IPO is an offer for sale of up to 221,374,920 shares through which the selling stakeholder – the central government – is seeking to raise Rs 21,000 crore to meet its current fiscal year divestment targets.
LIC’s IPO kicked off on May 4 and the shares can be offered until May 9, when the government transfers a 3.5 percent stake in the company. The IPO of LIC would remain open on Saturday (May 7) between 10 a.m. and 7 p.m., NSE reports in a notification on Wednesday. The LIC IPO price band is set at Rs 902 to 949 per share of the share, with discounts for some categories.
LIC IPO Subscription Status
According to NSE data, policyholders booked nearly double their allotted share, subscribing to 1.99 percent or 4,40.31,225 shares against 2,21,37,492 shares, as of day 1. The employee quota was subscribed for 1.17 times, while retail investors booked 60 percent of their share. The non-retail investors bid on 27 percent of the share reserved for them, while QIBs bid on 33 percent of the shares reserved for them. A total of 10,86,91,770 shares received bids against 16,20,78,067 shares for sale.
LIC IPO GMP today
On May 4, the unlisted shares of LIC fetch a premium of Rs 85 per share, according to market observer. The LIC IPO GMP was set at 9 percent. its resources, at the high end of the price band, LIC shares are trading at Rs 1,034 (Rs 949 + Rs 85) as LIC IPO GMP is today Rs 85.
What is LIC IPO Policyholder Quota?
In a first, the government has come up with a new quota through its LIC IPO for insurance giant’s policyholders to get a discount on the issue price band. “Policy holders have also created this company. We now invite them to become shareholders. We want to invite millions of Indians to participate in this process as LIC unlocks its value,” said Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM).
Discount for LIC IPO policyholders
While employees and private investors each receive a discount of Rs 45, LIC policyholders are eligible for a discount of Rs 60 per share of shares. However, this only applies to eligible policyholders who linked their PAN to their LIC policy before February 28th.
LIC IPO: How can policyholders apply?
LIC policyholders can offer up to Rs 2 lakh under their quota with the government allocating nearly 10 percent of the total share.
“Bids by eligible policyholders may be made at the closing price…only those bids received at or above the offer price, excluding the policyholders’ discount, are eligible for allotment under this section,” the red herring said. prospectus of the LIC.
Those with a group policy cannot bid under this quota, while all other policies are eligible. In addition to linking PAN to LIC policy, eligible investors must also have a demat account. You can use online banking apps or custodial platforms like Groww, Zerodha, and Upstox to request the issue.
LIC IPO: Should You Buy?
Geojit Financial Services: At the top price range of Rs.949, LIC is available at an Embedded Value Per Share (P/EVPS) of 1.1x, which is a 65 percent discount compared to the average valuation of private life insurance players. While headwinds such as declining market share, lower near-term persistence ratios and under-performing margins require a discount for retail players, the current valuation is attractive given the strong presence in the market and the improvement in profitability due to changes in distribution standards for surplus goods . That’s why we’re assigning a ‘Subscribe’ rating in the short to medium term.
The LIC IPO is expected to list on the stock exchanges on May 17.
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