LIC's IPO is here

Interesting. It seems like market is finally getting ready for this mega IPO.

Market positioning may soon begin.

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CNBC Sources now say …govt is looking to raise 5% (30000 Crore) making the valuation 6 Lac crore only. I remember it being talked as 15 Lac crore IPO Initially.

Both looks unrealistic now. Maybe the true valuation lies in btwn somewhere these levels.

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Looks like govt has indeed lowered the valuation to 6 Lac crores and are looking to dilute only 3.5%.

I’d say its a fair move considering the volatility in the mrkt. moreover, as the issue becomes bit lower, i’d not affect the liquidity in the mrkts as much as initially expected.

Overall , a sensible move. At this valuation, there can be takers for LIC for sure.

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There’s no official info on price band…but here’s what I recd frm my trading grp :

Price band : 954- 960 Rs

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Wow !! Just shows how the markets are in absolute panic mode.

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Is this the market talking or what?

The majority of the people I know who applied for the IPO have been allotted certain quantities. Already in the panic zone

I think the real valuation can turn out even lower than 6 lac crores. The market looks in utter chaos, and the government has not diluted it fairly. The initial valuation was said to be 15 lac crores. But look at its values now.
However, referencing the unsure market movements, maybe it is a good opportunity to be taken.

Do we know which are those great banks which arrived at the valuation for this LIC IPO, which have undermined the value of public money in this already high-inflation times?

One must penalize the bankers or have the banks put their money, the valuator put his money in the issue to have the skin in the game for a fair play. Else these investment-banks keep misguiding the public.
Should be like the mutual fund managers having part of their salary coming in as the DCF of what the current valuation instruments they are providing for the public.

And there should be a mandatory rule which discloses to public, how the valuators arrived at the valuation.
May be SEBI has already some whitepapers in the process.
But the decider of the valuation MUST have skin in the game.

All PSUs are wealth destroyers. Never buy any govt. company, however great is the valuation.

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If one bothers to read RHP before investing an IPO, he can get answers to such questions.

No one complains when stock doubles from IPO, but moment there are losses, everyone has views about how useless investment bankers are and why is SEBI sleeping.

Come on man, if you invest blindly, you have to bear the results, can’t blame it on SEBI and investment bankers.

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I totally agree with you, its totally naive to point out SEBI and bankers for any market down fall or stock under performance. Bankers took risk and it didn’t pay off same with investors.There is always market risk in investing, why nobody raised same question when stocks like Nyakaa , zomato listed double?

Investors should question and put pressure on companies management for performance and growth to bring stock sentiment to +ve. Thats how market works and innovation is driven in sector.

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I agree in part that its investor’s judgement. But it can be made more simpler to any party involved, is my point.
But how many can do that due diligence? At least one should spare the public(by proper valuation) when the initial price is being fixed.

Even the supreme court came down on 36000 + page dump that Amazon vs Future retail case brought as supporting documents?

Things should be made simpler. If you take public money then explain to the person (Majority of them, can do a sampling and should be at least 40-50%) he/she should understand how much the downside can be in terms of %.
Not some lengthy, ENGLISH/FINANCE jargon that reeks stupidity hidden under the presentation

RHP should be like CV, max 5-10 pages, not the dump of 1000 pages.
And those mutual funds which commit for a portion, also have to fund them using public money, right?
Not only this IPO or any PSU-IPO, the IPO/Valuation in general should have accountability on the other side (banks or the sellers’ consortium) also.

After all if one kills the Public with these type of financial traps, what s*** is the value of boat-loads of money the profiteers are going to do with, than wipe something off of it!!