LIC The largest IPO ever; Issue opens on May 4. All details here

LIC IPO – The Largest IPO Ever

LIC IPO is the largest IPO in India, with a valuation of around Rs 5.4 lakh crore expected. This
IPO will have a reduced issue size, from five per cent to three percent, making it easier for
smaller investors to invest in the IPO. Learn how to invest in LIC IPO in this article. All details are
provided below. Read on to find out how much you can invest in LIC IPO.

LIC IPO valuation expected to be around Rs 5.4 lakh crore

The LIC IPO will be the largest insurance issue in India with an expected market value of Rs 6
lakh crore, or approximately 1.1 times the company’s embedded value as at December end. In
its previous IPO, the company had been valued at around Rs 12-13 lakh crore, but the
government slashed the valuation to 6 lakh crore, bringing it in line with market expectations.
The IPO is expected to launch in May, with anchor investors placing bids on May 2. LIC
policyholders will get a discount of 60 per share while retail bidders will be offered a discount of
45 per share.
While it was originally planned to list the company in March, the Ukraine-Russia conflict froze the
market. Meanwhile, higher interest rates globally and inflation have led to an increase in volatility
in the stock market. While a cut in valuation could help the government balance the market for
first-time investors, the timing of the LIC IPO is still uncertain. In addition, many policyholders
have opened demat accounts in anticipation of the public offer
The LIC IPO is expected to be launched in the fall. The company will sell a fifth of its shares at a
valuation of about Rs 5.4 lakh crore. The issue will be open to institutional and retail investors. A
large portion of the shares will be reserved for anchor investors. The government hopes to raise
Rs 60,000-70,000 crore from the sale of a 5% stake in LIC. 
In addition, LIC has an unmatched market share in India. No other life insurance company in the
world has such a sizeable market share. This is one of the reasons why the company has been
valued at around Rs 13 lakh crore. This means that the IPO is likely to attract large participation
from investors and offer a premium listing. In other words, LIC’s IPO valuation is more realistic
than what it would have been in the past. 
The LIC IPO is set to open on May 4 and close on May 9. The company will offer 3.5 per cent
shares to retail investors, which will fetch the government about Rs 21,000 crore. LIC is 100 per
cent government owned, but the government has cut down the IPO size by 5 per cent due to the
ongoing war in Ukraine. If this does happen, LIC will be the largest IPO in the world.
The government has already cut down the issue size by Rs 65,000 crore as the situation has
gotten worse. However, it still has time to launch the IPO without filing fresh papers with the
Sebi. According to sources, the government is weighing whether to proceed with the IPO in May
or wait until the geopolitical situation clears up. This would allow the government to better price
the IPO so that the insurer will be able to sail through the IPO without problems. 

IPO issue size reduced from 5 per cent to 3.5 per cent 

The LIC IPO issue size has been reduced from five per cent to 3.5 percent. The government had
initially planned to reduce the issue size to 5%. The IPO is expected to hit the floor in the first
week of May. The government hopes to raise Rs 21,000 crore from the IPO. While the IPO issue
size is expected to fall from five per cent to 3.5 percent, there is a possibility that the IPO will be
even smaller.
The government has decided to proceed with the LIC IPO despite the setback. The recent war in
Ukraine and the volatility in the markets are not expected to improve anytime soon. Postponing
the IPO is unlikely to improve the situation for the company any time soon. Additionally, other
market issues, such as high oil prices and inflation, are unlikely to go away anytime soon. The
LIC has not yet responded to questions Business Standard has emailed.
The LIC board has agreed to the 3.5 percent IPO issue size. Under the deal, the government will
sell 3.5 percent of LIC shares for Rs 21,000 crore. The deal is subject to the approval of the
capital markets regulator. If the government gets its regulatory approval, the IPO issue size can
increase to five per cent. This move would raise Rs 30,000 crore in funds for the government’s
budget.
A DPIIT press note included FDI policy changes that would allow large foreign portfolio investors
to subscribe to LIC shares. The FEMA notification was required to operationalise the changes in
the LIC FDI policy. Through this rule change, foreign portfolio investors will be able to purchase
shares in LIC at up to 20 per cent FDI through the automatic route.
The government has also agreed to reduce the LIC IPO issue size to 3.5 per cent from five per
cent. However, a major stumbling block remains the Government’s stake in the company.
Although the IPO size is expected to be reduced, the LIC will still be valued at more than six
lakh crore after the IPO. The government may dilute its equity stake in the company through
follow-on public offerings or other means. 
The IPO issue size will be smaller by three percentage points to 3.5 per cent. The Anchor
Investor Portion will not be more than 50 per cent, while the Retail Investor Portion will be up to
35 per cent. The LIC is also offering the Policyholder Reservation Portion, which is a discount for
LIC policyholders. Moreover, the Policyholder Reservation Portion will be available to all LIC
policyholders at the cut-off price. 

Steps to invest in LIC IPO 

You must first open a DEMAT account in order to invest in IPOs. TradeSmart is a leading broker
in India that offers the most competitive brokerage fees. Once you open a DEMAT account, you
can invest in equity with the highest profits. If you are a new investor, you can sign up for a free
demo account at TradeSmart. To invest in LIC IPO, you must follow the steps mentioned below.
Sign up for an account with LIC and log in to the LIC website. Fill in the required details – your
date of birth, gender, PAN, email address, and PAN. You should also link your Aadhaar number
to your PAN before investing in LIC IPOs. Once you have successfully verified your details, you
can buy LIC IPOs. You can also invest in other companies listed on the stock exchange.
Apply for a policy. All types of LIC policyholders can apply for the IPO. In addition to this, the LIC
has reserved a certain percentage of its issue size for policyholders. After you have registered,
fill out the online form to buy shares. Once you have completed the registration process, you will
be directed to a verification page where you can enter your PAN number and CAPTCHA code. 
Open a Demat account with your broker. You can also invest online in LIC IPOs. LIC IPOs are
expected to launch at a price of between Rs 1500 and Rs 3200, depending on the issue price.
The price range for the IPO will be announced after the IPO is released. Institutions and
investors are closely monitoring the process as the IPO is slated to be the largest ever in India.
The company contributes to the Indian economy and GDP.
PAN card details: You must link your PAN with your existing LIC policy. This is the first step in
investing in LIC IPO. LIC has a separate reservation quota for policyholders in its IPO. You can
apply for IPO benefits and discount. This way, you can get in on the biggest IPO in India. Then,
follow the steps laid out below. You should be able to invest in LIC IPO before it closes. It will be
worth it if you invest in this great stock.
 
LIC is expected to list on the stock exchange in January-March 2021. Listed companies like
Amazon, Walmart, and eBay will be competing for investors’ money. The government has
closely followed the process. The IPO is expected to raise as much as Rs. 80,000 to one lakh
crores. As of now, the company is preparing its financial statements for the DRHP, which will be
submitted to the regulators in April.

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