The Journey to India’s Most Awaited and Biggest IPO has officially kick-started. An actuarial valuation exercise has arrived at a valuation of 150 Billion $ for this Insurance and investment behemoth i.e.,LIC. The company is set to do more such valuation exercises and also start road shows from December for its initial share sale.
The Government seems to be keen to rope in Fixed Income funds and Long term pension and sovereign funds as LIC’s key shareholders as anchor investors (who are mainly long term investors) instead of hedge funds and short term oriented equity funds who mainly focus on short term returns.
Let’s share and discuss other interesting data points and updates regarding LIC and its IPO.
What are your initial thoughts on the initial valuation of 150 Billion US dollars for LIC ? Is it looking attractive compared to other Insurance players? What are the Pros and Cons of investing in LIC?
LIC has issued a public notice to all the policy holders regarding updation of their PAN details in the company’s records. As u all might be aware, 10% of the issue is reserved to LIC policy holders.
Preparation by the company is in full flow is what Im hearing @MarginCaller . My parents have policy in LIC and if the PAN is updated, they may get some allotment . If nt allotment, atleast some concession for being their policyholder.
Can anyone give some reasons as to why LIC could be a better investment compared to other insurance companies keeping in view that there is huge competition in insurance sector, the insurance penetration is very low and knowing how govt companies perform, the private sector will most probably gain market share while LIC will start loosing its share?
@anon75004691 In my humble opinion, Market may view LIC as a massive wealth creating AMC more than an insurance company. It is so huge that it will take ages for others to take its pie
can i apply in both categories policy holder quota as well in individual quota also ?
if any one caetgory only means , which category would have more chance to get allottment ?
My conspiracy theory is that DII are sustaining market (against constant outflow of FII) and keeping it buoyant for LIC IPO
I am worried that DII support will go post LIC IPO and might result in crash.
Well, we all expect a lot from LIC, the biggest and most dominant king of all insurance providers in India. But looking at the past few track records of LIC, it looks like the company itself is in need of support now. LIC is crashing massively, and at this rate, not many traders will think it is safe to hold on to it, unless they have a big risk appetite.
I think that people should not consider just the reputation of LIC. It is suffering crashes. I think that it is not safe to consider it as of now. But people who are not that risk-averse might consider it.