LIC IPO opens today: The Rs 21,000 crore IPO of Life Insurance Corporation of India (LIC) will open today. The issue is said to be the biggest ever in the Indian market. On May 2, this IPO has received a bumper response by anchor investors. LIC IPO has received subscription of Rs 5,620 crore from anchor investors. The government is selling 3.5 per cent stake or 22,13,74,920 shares in the insurance company through the IPO. The government’s stake, which currently stands at 100 per cent, will go up to 96.50 per cent post the IPO.
Share price band Rs 902 to 949
Shares in the IPO will be available in the price band of Rs 902 to 949. The allotment of shares will be done on May 12, 2022. The lot size of the IPO is 15 shares bid for which Rs 14,235 will be required. A retail investor can apply for 14 lots or 210 shares by spending Rs 1,99,290.
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LIC’s IPO will be listed on May 17
The stock is likely to be listed on BSE and NSE on May 17. The firm has fixed an investment limit of Rs 2 lakh each for policyholders, employees and retail investors quota. Keffin Technologies Limited is the registrar of the IPO.
What do experts say?
LIC IPO is getting discount price. Giving a ‘buy’ tag to the issue, Kanika Agarwal, Co-Founder and Chief Investment Officer, Upside AI said, “The pricing of LIC IPO is very attractive. As the government has reduced the valuation by 50 per cent to ₹6 lakh crore. Its valuation in the U.S. is reasonable at 1.1x for an embedded value of around ₹5.4 lakh crore. Private insurers trade at 2.5-4x.”
Choice Broking
Rating: Subscribe
Choice Broking said, “LIC had 61.4 per cent market share in NBP as on 31st December 2021. In addition, it had 71.8 per cent and 88.8 per cent market share in the number of personal and group policies issued, respectively. LIC holds 13.3 lakh individual There were agents, which accounted for 55 percent of the total agent network in India. LIC’s market position will strengthen and it can give great returns to its shareholders. It is getting more discounts than private players. It can be subscribed. is.”
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angel one
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Yash Gupta, Equity Research Analyst, Angel One, said, “The discounts of Rs 45 and Rs 60 make this issue very attractive for retail investors and LIC policyholders. Hence, we recommend ‘subscribing’ to the issue. “
Apart from this, domestic brokerage firms including IIFL Security, Marwadi Financial Services, Geojit have advised to invest in this issue.