LIC IPO Open Live: LIC (Life Insurance Corporation of India) logo is seen displayed in this illustration taken, February 15, 2022. (REUTERS/Illustration/File Photo)LIC IPO Open Highlights: LIC’s public offer, the country’s biggest-ever IPO, was fully subscribed on the second day of bidding on Thursday. It will be available for public subscription till Monday, May 9, 2022. The price band of LIC IPO is fixed at Rs 902-949 per share and the company is offering a discount of Rs 60 per share for its policyholders and Rs 45 apiece for retail investors and LIC employees.
The LIC issue was subscribed 1.03 times, NSE data at 7.00 pm showed. The policyholders segment was subscribed 3.11 times while the employees portion was subscribed 2.22 times, the data showed. Apart from these, the qualified institutional buyers (QIBs) was subscribed 0.40 times, the non institutional investors was subscribed 0.47 times and the retail segment was subscribed 0.93 times, the data showed.
Investors who wish to subscribe to LIC IPO can bid in a lot of 15 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,235 (excluding discounts) to get a single lot of LIC. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
LIC IPO Subscription Update as of 7:00 PM on Day 2
Qualified Institutional Buyers (QIBs) subscribed 0.40 times
Non Institutional Investors subscribed 0.47 times
Retail Individual Investors (RIIs) subscribed 0.93 times
Employees subscribed 2.22 times
Policyholders subscribed 3.11 times
Total subscribed 1.03 times
Source: NSE
LIC IPO Subscription Update as of 5:54 PM on Day 2
Qualified Institutional Buyers (QIBs) subscribed 0.40 times
Non Institutional Investors subscribed 0.45 times
Retail Individual Investors (RIIs) subscribed 0.89 times
Employees subscribed 2.10 times
Policyholders subscribed 2.94 times
Total subscribed 0.98 times
Source: NSE
LIC IPO Subscription Update as of 5:03 PM on Day 2
Qualified Institutional Buyers (QIBs) subscribed 0.40 times
Non Institutional Investors subscribed 0.44 times
Retail Individual Investors (RIIs) subscribed 0.87 times
Employees subscribed 2.06 times
Policyholders subscribed 2.90 times
Total subscribed 0.97 times
Source: NSE
LIC IPO Subscription Update as of 3:06 PM on Day 2
Qualified Institutional Buyers (QIBs) subscribed 0.34 times
Non Institutional Investors subscribed 0.37 times
Retail Individual Investors (RIIs) subscribed 0.83 times
Employees subscribed 1.91 times
Policyholders subscribed 2.76 times
Total subscribed 0.90 times
Source: NSE
LIC IPO Subscription Update as of 12:57 PM on Day 2
Qualified Institutional Buyers (QIBs) subscribed 0.34 times
Non Institutional Investors subscribed 0.33 times
Retail Individual Investors (RIIs) subscribed 0.77 times
Employees subscribed 1.69 times
Policyholders subscribed 2.53 times
Total subscribed 0.83 times
Source: NSE
"At the upper price band of ?949, Life Insurance Corporation of India is demanding a PE multiple of ~201.91X based on FY21 earning which is much higher than the industry average PE multiple of 79.77X of FY21. This might look expensive, but if we look at the company’s Indian Embedded Value of ?5,39,686 crores as on September 30, 2021, the Market Cap to Embedded Value (EV) Ratio comes in at just 1.11X. It’s peers like HDFC Life Insurance and SBI Life Insurance are trading at an EV multiple of 4.05x and 3.10x, while ICICI Prudential Life trades at 2.5x EV multiple. Looking at the strong brand value, market leadership, extensive distribution networks, robust risk management and plans of diversifying the product mix we recommend subscribe to the issue with a long-term perspective."
Source: IPO Note
LIC IPO Subscription Update as of 11:33 AM on Day 2
Qualified Institutional Buyers (QIBs) subscribed 0.34 times
Non Institutional Investors subscribed 0.30 times
Retail Individual Investors (RIIs) subscribed 0.71 times
Employees subscribed 1.56 times
Policyholders subscribed 2.39 times
Total subscribed 0.78 times
Source: NSE
LIC IPO Subscription Update as of 10:15 AM on Day 2
Qualified Institutional Buyers (QIBs) subscribed 0.33 times
Non Institutional Investors subscribed 0.28 times
Retail Individual Investors (RIIs) subscribed 0.65 times
Employees subscribed 1.30 times
Policyholders subscribed 2.14 times
Total subscribed 0.71 times
Source: NSE
Investor sentiment in the secondary market has a bearing on the primary markets. RBI’s decision to hike the interest rate led to a sharp fall in the benchmark indices on Wednesday (May 4).
Why did RBI announce the rate hikes in the middle of the LIC IPO which is critical for the government? Will the rate hike have a bearing on the public issue? Click here to read our explainer
LIC IPO Subscription Update as of 7:00 PM on Day 1
Qualified Institutional Buyers (QIBs) subscribed 0.33 times
Non Institutional Investors subscribed 0.27 times
Retail Individual Investors (RIIs) subscribed 0.60 times
Employees subscribed 1.17 times
Policyholders subscribed 1.99 times
Total subscribed 0.67 times
Source: NSE
LIC IPO Subscription Update as of 5:33 PM on Day 1
Qualified Institutional Buyers (QIBs) subscribed 0.33 times
Non Institutional Investors subscribed 0.25 times
Retail Individual Investors (RIIs) subscribed 0.57 times
Employees subscribed 1.08 times
Policyholders subscribed 1.87 times
Total subscribed 0.64 times
Source: NSE
LIC IPO Subscription Update as of 3:24 PM on Day 1
Qualified Institutional Buyers (QIBs) subscribed 0.03 times
Non Institutional Investors subscribed 0.21 times
Retail Individual Investors (RIIs) subscribed 0.51 times
Employees subscribed 0.89 times
Policyholders subscribed 1.67 times
Total subscribed 0.50 times
Source: NSE
LIC IPO Subscription Update as of 1:48 PM on Day 1
Qualified Institutional Buyers (QIBs) subscribed 0.03 times
Non Institutional Investors subscribed 0.09 times
Retail Individual Investors (RIIs) subscribed 0.43 times
Employees subscribed 0.70 times
Policyholders subscribed 1.38 times
Total subscribed 0.40 times
Source: NSE
"The price band of LIC ipo is kept at a higher side which is not an attractive price for adequate return growth. We recommend that investors may subscribe for listing day gains and wait for lower levels for long term investment"
"Everyone should apply, but the prospects should be long-term rather than short-term.
As all of them are receiving a good discount, their valuations are becoming more reasonable; however, further stake sales after one year are possible. So invest for the long term."
LIC IPO Subscription Update as of 11:30 AM on Day 1
Qualified Institutional Buyers (QIBs) subscribed 0.00 times
Non Institutional Investors subscribed 0.04 times
Retail Individual Investors (RIIs) subscribed 0.24 times
Employees subscribed 0.38 times
Policyholders subscribed 0.48 times
Total subscribed 0.18 times
Source: NSE
"India’s life insurance industry is expected to grow rapidly, owing to a relatively underpenetrated market and expanding awareness, which presents a multi-year growth opportunity. LIC has been providing life insurance in India for over 65 years and is the country’s biggest life insurer, with a significant brand value advantage. There are concerns about losing market share to private players and having lower profitability and revenue growth when compared to private players. However, we believe that LIC’s distribution advantage, increasing sales mix of direct and corporate channels, and a gradual shift to high margin Non- participating products could be possible drivers for LIC’s future growth, negating lower than industry growth rates. At the upper price band, the stock is priced at 1.1x of its 2QFY22 Indian Embedded value (Market capitalization/Embedded value: ?6 trillion/?5.39 trillion), which is at a significant discount to its listed peers. Currently listed insurance companies trade at Market capitalization/EV multiple of ~2.8x. LIC has a marquee anchor list of investors and we recommend SUBSCRIBE to the LIC IPO."
Source: IPO Note
LIC IPO Subscription Update as of 11:03 AM on Day 1
Qualified Institutional Buyers (QIBs) subscribed 0.00 times
Non Institutional Investors subscribed 0.04 times
Retail Individual Investors (RIIs) subscribed 0.19 times
Employees subscribed 0.29 times
Policyholders subscribed 0.38 times
Total subscribed 0.14 times
Source: NSE
"Based on life insurance premiums, India is the tenth largest life insurance market in the world and the fifth largest in Asia. The size of the Indian life insurance industry was Rs. 6.2 trillion based on total premium in Fiscal 2021, up from Rs. 5.7 trillion in Fiscal 2020. The industry’s total premium has grown at 11% CAGR in the last five years ending in Fiscal 2021.
LIC is the trusted brand and a customer-centric business model. It’s a largest player in the fast growing and underpenetrated Indian life insurance sector. Cross-cyclical product mix that caters to diverse consumer needs and an individual product portfolio that is dominated by participating life insurance policies. LIC is present across India through an omni-channel distribution network with an unparalleled agency force. LIC has Highest RoNW amongst other listed players in India in the same industry.
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 peer 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 capitalisation-to-embedded value ratio arrived at 3.4 times. Hence, the issue looks quite attractive for investors. Considering the largest size of the IPO Company’s well diversified product portfolio, and financial track records and bright prospects ahead, we recommend a "Subscribe" rating to this IPO."
Source: IPO Note
LIC IPO Subscription Update as of 10:33 AM on Day 1
Qualified Institutional Buyers (QIBs) subscribed 0.00 times
Non Institutional Investors subscribed 0.02 times
Retail Individual Investors (RIIs) subscribed 0.09 times
Employees subscribed 0.13 times
Policyholders subscribed 0.23 times
Total subscribed 0.08 times
Source: NSE
"Despite LIC writing millions of insurance policies, the insurance premium-to-GDP ratio in India is at 3.7%, well below the global average of 7.2%. The IPO is valued at a Price/Embedded Value of 1.1x on the higher band on its 2QFY22 EV, which is at a significant discount compared to the P/EV for listed private life insurance companies. HDFC Life Insurance is trading at a P/EV of 4.1x, SBI Life at 2.9x, and ICICI Pru Life at 2.2x. LIC has a diverse portfolio of insurance and investment products to cater to the needs of individuals. The company is well-placed owing to its omni-channel distribution network comprising of 1.33mn agents, several partners and alternate channels, its trusted “LIC” brand value, and 65 years of lineage. Moreover, LIC is backed by its strong financial track record and experienced management team. In view of the giant market share, largest assets under management, strong brand, diverse portfolio of products, and valuation comfort, we recommend SUBSCRIBE to the issue."
Source: IPO Note
"At the upper price band of Rs.949, LIC is available at P/EVPS (Embedded Value Per Share) of 1.1x which is at a discount of 65% compared to the average valuation of private life insurance players. Even though headwinds like declining market share, lower short-term persistency ratios and sub-par margins demand a discount to private players, the current valuation is attractive considering its strong market presence, improvement in profitability due to changes in surplus distribution norms and strong sector growth outlook. Hence, we assign a “Subscribe” rating on a short to medium term basis."
Source: IPO Note
India’s largest financial institution, Life Insurance Corporation (LIC), which manages around Rs 40 lakh crore of public money, is getting listed on the stock exchanges with a Rs 21,000 crore initial public offering (IPO). Click here to read this explained article
LIC mobilised a total of Rs 5,627 crore from anchor investors on Monday. Four equity schemes of SBI MF invested the amount with SBI Equity Hybrid Fund alone putting in Rs 518.99 crore, according to data available from exchanges.
Seven schemes of ICICI Prudential Mutual Fund invested Rs 725 crore in the LIC IPO. HDFC Mutual Fund was allocated shares worth Rs 525 crore. Aditya Birla Sun Life MF, Axis Mutual Fund, Kotak MF, L&T MF and Nippon India MF, among others, also invested in the anchor portion. Click here to read
Investors who wish to subscribe to LIC IPO can bid in a lot of 15 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,235 (excluding discounts) to get a single lot of LIC.
The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
Kotak Mahindra Capital Company, Axis Capital, BofA Securities India, Citigroup Global Markets India, Nomura Financial Advisory and Securities India, Goldman Sachs India Securities, ICICI Securities, JM Financial, JP Morgan India and SBI Capital Markets are the book running lead managers to the offer while KFin Technologies is the registrar of the issue.
The government had cut the issue size from Rs 65,000 crore as the Russian invasion of Ukraine roiled markets — but this will still be India’s largest IPO.
The floor price is 90.2 times the face value of the share and the cap price is 94.9 times the face value of the share, LIC said. Click here to read
During the announcement of the LIC IPO last week, the company informed about the discount of Rs 60 per share for its policyholders and Rs 45 apiece for retail investors and LIC employees.
The much-awaited initial public offering (IPO) of life insurance sector giant Life Insurance Corporation of India (LIC) will open for subscription on Wednesday, May 4, 2022.
The over Rs 21,000 crore LIC IPO will be available for subscription till Monday, May 9, 2022, and the price band of the company has been fixed at Rs 902-949 per share. Click here to read
Domestic mutual funds invested Rs 4,002.27 crore, accounting for 71.12 per cent of the total anchor book portion of the initial public offering (IPO) of Life Insurance Corporation (LIC). SBI Mutual Fund invested Rs 1,006.89 crore, becoming the largest investor in the anchor book quota. Click here to read
LIC IPO:
Date: May 4-9, 2022
Price band: Rs 902-949 per share
Discount: Rs 60 per share for policyholders and Rs 45 apiece for retail investors and employees.
Lot size: 15 equity shares and in multiples thereof