LIC IPO listing highlights: Shares close at nearly 8% discount on listing day; What should investors do with this counter?
LIC IPO Listing Live Price: Shares of Life Insurance Corporation (LIC) were listed at nearly 9 % discount on NSE, BSE on Tuesday, May 17, 2022
LIC IPO Listing Live Price: Shares of Life Insurance Corporation (LIC) were listed at nearly 9 % discount on NSE, BSE on Tuesday, May 17, 2022. The initial public offering of national insurer, which remained open between May 4 and 9, was subscribed 2.95 times on the last day. Against 16,20,78,067 shares on offer, the state-run insurer received bids for 47,83,67,010 shares.
The portion reserved for policyholders was subscribed 6.12 times, followed by 4.4 times bidding for employee quota. As for Retail Individual Investors (RIIs), Non-institutional Investors and Qualified Institutional Buyers (QIBs), the bids subscription figure stood at 1.99 times, 2.91 times and 2.83 times respectively.
The retail investors and eligible employees were given a discount of Rs 45 per equity share and a discount of Rs 60 per share was given to policyholders.
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The subdued listing of LIC is in-line with expectations in context to the drop in market dynamics from the opening of the IPO to the listing date. The listing price has fallen in tandem with the fall of insurance sector valuations, maintaining the discount of about 70% to the industry’s average. Positively, the stock was brought at the dip. We believe that LIC is a decent investment opportunity in the short to medium-term considering its strong market presence, improvement in future profitability due to the changes in surplus distribution norms and strong sector growth outlook. LIC can perform well when we have a bounce in the market and positive performance in the insurance sector- Vinod Nair, Head of Research at Geojit Financial Services.
Amid fierce competition from rivals such as HDFC Life Insurance Company Ltd and ICICI Prudential Life Insurance Company Ltd, LIC`s market share has dropped to 63% from 66% in 2019, according to data from the insurance regulator.
Investors should stay put with LIC shares. LIC is a big organization and it aims to do better going forward. One should not invest in IPOs for the sake of listing gains only- DIPAM Secretary Tuhin Kant Pandey to LIC shareholders
What makes LIC world's cheapest insurance stock? Zee Business Research report decodes.
The market capitalization to Indian Embedded Value (M-cap/IEV) of LIC is cheapest at around 1 and 1.05 (with respect to 5% correction from issue price) as against other private life insurance firms such as HDFC Life (4.1 M-cap/IEV), SBI Life (2.8 M-cap/IEV) and ICICI Pru Life (2.4 M-cap/IEV), highlighted Zee Business Senior Research Analyst Varun Dubey said in his report on Tuesday. In comparison, LIC’s valuations are one-fourth of HDFC Life’s valuations, the research analyst said.
The valuations of the public insurer are also cheaper than its global counterparts as AXA SA has 1.1-1.2 M-cap/IEV, while AIA, Zurich Insurance, and Alliance have M-Cap/IEV between 1.1-1.9.
LIC IPO was difficult, not impossible, says LIC MD Raj Kumar
LIC shares losses narrowed post listing as the counter was trading above Rs 900 around 10.35 am. The shares were trading at Rs 902.00 per share, up Rs 34.80 or 4.01% on the listing price and at discount of Rs 47.00 or 4.95% against issue price.
Here is how LIC fares vis a vis global and domestic insurance companies. Know where does it stands in terms of valuations.
Click on this link to know full analysis
The insurance behemoth LIC Ltd. has debuted at Rs. 872 i.e. 7% below its issue price. The company’s weak listing can be attributed to high volatility in the markets and negative market sentiments. The company is synonymous with insurance in India and enjoys a phenomenal brand recall. We believe India’s highly underpenetrated life insurance space is still at a nascent stage and is attractively positioned to capture the huge growth opportunity. LIC enjoys many competitive advantages like strong brand value, extremely large scale of operations, a huge network of agents, and an envious distribution network, further, the company’s issue was priced at a Price to Embedded value of 1.1x, providing a valuation comfort, so we suggest investors to stay with the company for the long term despite the negative listing. Those who applied for listing gains can maintain a stop loss of Rs. 800. New investors can take advantage of the dips to accumulate this share for the long term. We would like to add that the company's further downside will be limited due to low float post listing.- Parth Nyati, Founder, Tradingo,
Shares of LIC were listed at nearly 9% discount on the BSE and NSE. LIC Shares were listed at Rs 867 per share against issue price of Rs 949 on the BSE and Rs 872 per share on the NSE
BSE MD CEO Ashish Chauhan says, from the first day of listing, LIC will be in A group of securities
DIPAM secretary says LIC policy holders number is about population of many countries. Eelmbed value was determined first time and now onwards EV will be available on regular intervals
LIC IPO Listing Ceremony on BSE: The ceremony of Life Insurance Corporation of India begins with auspicious Lamp Lighting on 17th May, 2022, on the BSE.
Minutes before listing, LIC shares cut losses as they were trading at over 8% discount on the BSE around 9.45 pm. They were trading at Rs 867.20 per share on the BSE.
LIC IPO Listing: Will the shares will be listed at premium or they will open below issue price. What should long-term, short-term investors do? Anil Singhvi detailed analysis.
Ahead of listing of LIC shares on the excanges, Tuhin Kanta Pandey, Secretary DIPAM speaks at the Listing Ceremony of Life Insurance Corporation of India on 17th May, 2022
LIC IPO Listing update by BSE: Trading Members of the Exchange are hereby informed that effective from May 17, 2022, the equity shares of Life Insurance Corporation of India (Scrip Code: 543526) are listed and admitted to dealings on the Exchange in the list of ''A'' Group Securities.
LIC share listing price: At 9.20 am, the shares of LIC were trading at Rs 824, a discount of Rs 125 or 13.17%, on the BSE ahead of the listing
Total premium of the industry grew by a CAGR of 11% over FY16-21 and estimated to grow by 14-15% over next five years. Geojit Financial Service
LIC had the highest gap in market share by life insurance GWP relative to the secondlargest life insurer in India as compared to the market leaders in the top seven markets globally. According to RHP, this is due to the enormous agent network, strong track record, immense trust in the brand ‘LIC’ and its 65 years of lineage. LIC is ranked 5th globally by life insurance GWP and 10th globally in terms of total assets- LKP Securities
Indias 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 countrys biggest life insurer, with a significant brand value advantage - LKP Securities
LIC IPO listing price
As per Zee Business Managing Editor Anil Singhvi, the IPO of India's largest insurer is expected to list below issue price of Rs 949. The shares may list in 920-935 range, says Anil Singhvi. Short Term Investors keep stoploss of their cost, he suggestes
LIC was recognised as the third strongest and 10th most valuable global insurance brand as per the “Insurance 100 2021 report” released by Brand Finance
What should investors do with LIC shares post listing?
We anticipate that LIC might have a flat listing, based on the current market situation. Due to increased inflation statistics, FII outflows, currency weakness, geopolitical and rate hike-related worries, present markets are experiencing extraordinary volatility, which has caused sell-offs in equity markets all over the world. LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand value and huge network of agents. However, there are concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins and short-term persistency ratios, but the valuation at Price to Embedded Value of 1.1 had discounted the above concerns. Nevertheless, investors must be aware that the business of insurance is long term in nature; therefore we recommend investors to stay with the company for the long term even if the company lists at a discount.- Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd. on LIC IPO.
Life Insurance Corporation of India Ltd (LIC), incorporated on September 1, 1956 is formed by merging and nationalizing 245 private life insurance companies in India. LIC has been providing life insurance in India for 65 years and is the largest life insurer in India.
LIC IPO Shares listing timing: Shares of India's largest public offer is expected to be listed on the exchanges- NSE and BSE- around 10 AM on Tuesday.
LIC IPO listing expectations from Anil Singhvi
Anil Singhvi in his preview had said that the LIC’s shares may show a tepid or muted listing amid the overall weak market sentiments. He said that it is highly likely that investors would be able to make money in both the short-term and long-term. However, the market guru had recommended investors to subscribe the IPO with a long-term perspective.
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