LIC IPO Price, LIC GMP Today: Life Insurance Corporation of India’s (LIC) IPO is about to open for subscription at the moment, ending years of wait. The insurance coverage behemoth has already raised Rs 5,627 crore, of the overall Rs 21,000 crore, from anchor buyers forward of the general public situation, with most demand coming from home institutional buyers. Retail buyers will get the chance to subscribe to the difficulty from at the moment in a set value band of Rs 902-949 per share, and a further low cost of Rs 45 per share. Domestic brokerage and analysis companies appear gung-ho on the prospects of LIC with most pinning a ‘Subscribe’ ranking on the difficulty. LIC shares had been buying and selling at a gray market premium of Rs 85 apiece within the unlisted area forward of the difficulty.
LIC IPO value particulars
LIC’s Rs 21,000 crore IPO is solely a proposal on the market (OFS) by the Government of India – the present stakeholder. The authorities is trying to promote 22.1 crore fairness shares with a face worth of Rs 10 every. Although the value band for LIC has been stored at Rs 902-949 per share, LIC has provided varied reductions for buyers trying to subscribe to the difficulty. Retail buyers and LIC staff trying to turn out to be shareholders of LIC will get a Rs 45 per share low cost whereas LIC Policyholders will get a reduction of Rs 60 per share.
Investors can bid for LIC IPO in a bid lot measurement of 15 fairness shares, and multiples thereafter. Through the IPO, LIC’s promoter shareholding will drop to 96.5% from the present 100%, whereas public shareholding will enhance to three.5% from zero.
Massive alternative
Life Insurance Corporation of India Ltd has been offering life insurance coverage in India for greater than 65 years and is the most important life insurer in India, with a 61.6% market share by way of premiums, stated analysts at LKP Securities. In phrases of AUM, LIC is the most important asset supervisor in India with an AUM of Rs 40 lakh crore on the finish of 2021. “LIC’s investments in listed equity represent around 4% of the total market capitalisation of NSE as at December 31, 2021,” analysts stated.
With all its would possibly, LIC is an unparalleled power. “LIC has the largest individual agent network of 1.3 mn – 6.8x the 2nd largest life insurer player in India,” Motilal Oswal stated in a observe. LIC works in an underpenetrated market with enormous potential to develop. “India’s life insurance penetration stood at just 3.2% in CY20 vs. 7.6%/6.4%/3.4% in Singapore/ South Korea/Thailand — its Asian peers. The protection gap for India is also the highest at 83% (CY19) amongst APAC,” the brokerage agency stated.
Strong monetary efficiency
In the primary 9 months of the monetary yr 2022, LIC had a web revenue of Rs 17 billion. This was above Rs 8 billion for SBI Life, Rs 9 billion for HDFC Life, and 6 billion for ICICI Prudential Life. In the three monetary years previous the fiscal yr ending March 31, 2022, LIC has had a web revenue of Rs 2627 crore, Rs 2710 crore, and 2974 crore.
Valuation enticing, ranking ‘Subscribe’
LIC is valued by analysts at Motilal Oswal at 1.1x 1HFY22 EV which is at important low cost to its personal listed friends. “ LIC with its dominant position is well placed to capture the highly underpenetrated life insurance industry in India. We like its increasing focus on non-par products which could boost its VNB margins,” the brokerage agency stated whereas recommending Subscribing to the difficulty. LKP Securities values LIC at 1.1x of its 2QFY22 Indian Embedded Value (Market capitalization/Embedded worth: Rs 6 trillion/Rs 5.39 trillion). They added that at present listed insurance coverage firms commerce at a Market capitalization/EV a number of of ~2.8x. Analysts at Nirmal Bang and Anand Rathu additionally advocate ‘Subscribe’ for LIC IPO whereas valuing it at a reduction to friends.
LIC will turn out to be the most important IPO on Dalal Street pipping Paytm, which raised Rs 18,300 crore final yr. Prior to this, Coal India (2010) was the most important situation at practically Rs 15,500 crore and Reliance Power (2008) at Rs 11,700 crore.
Source: www.financialexpress.com”