LIC IPO, India’s largest initial public offering (IPO) by state-owned Life Insurance Corporation (LIC), will open for general public tomorrow, May 4. On Monday, the first day of subscription, the anchor investor part of LIC IPO was oversubscribed. The public issue of LIC will go on for public from May 4 to May 9.
Waiting for India’s Mega IPO It’s finally over. Most of the analysts are bullish and recommend subscribing to the IPO at cheaper valuations.
Should retail investors, policy holders and first time investors subscribe? What do analysts say?
Narendra Solanki, Head of Equity Research (Fundamentals), Anand Rathi Shares & Stock Brokers said: LIC IPO Looks attractive as it has around 30 crore policyholders and 1.3 million agents, which is 55 per cent of the total agent network. The insurance giant has a market share of around ~64% in the total insurance premiums of the sector in FY2011. Life insurance has been one of the fastest growing sectors in the insurance market of India and has recorded maximum premium income 5.7 trillion in FY20. Out of this, LIC had written a premium of about Rs 3.8 lakh crore. One can now invest in Life Insurance Corporation (LIC), India’s largest and world’s third strongest brand, except as a policyholder.
Analysts have recommended the issue for the long term.
“Every body should apply but the prospect should be of long duration and not short term. Since all of them are getting good discounts as well as valuation is fair, but on the other hand after a year more stake sale is possible. So invest for the long term,” said Ravi Singhal, vice chairman, GCL Securities.
Ravi Singh, Vice President and Head of Research, Share India, believes that the price band of LIC’s IPO is kept high, which is not an attractive price for substantial return growth. But he advised investors to subscribe to the IPO. “We recommend that investors can subscribe to list day’s gains and wait for lower levels for long-term investments,” he added.
lic ipo date
LIC’s IPO will open on May 4 and close on May 9
lic ipo size
The size of LIC’s IPO will be approx. 21,000 crore
LIC IPO Issuance Details
LIC has fixed its price band for Initial Public Offering (IPO): from 902 949 per equity share.
LIC IPO discount for policyholder investors and employees
Policyholders will get discount 60 per equity share, while retail investors and employees will get a discount 45 on each share.