oppn parties LIC IPO: Expected Valuation To Be About Rs 14 Lakh Crore

Story Of The Day

Assessee Not Responsible For Ensuring TDS Is Paid To The Government: Delhi HC
OPINIONS : Strongly Expressed

December 21, 2024

People Are Talking About

Rohit Warns Sarfaraz, Police Use It To Warn Two-Wheeler Riders

News Snippets

  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
D Gukesh is the new chess world champion at 18, the first teen to wear the crown. Capitalizes on an error by Ding Liren to snatch the crown by winning the final game g
oppn parties
LIC IPO: Expected Valuation To Be About Rs 14 Lakh Crore

By Linus Garg
First publised on 2022-02-10 08:51:38

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

Although the government is expected to file the red herring prospectus in the next couple of days, reports suggest that it is looking at a valuation of Rs 13-14 lakh crore for LIC ahead of the IPO. The valuation is based on the embedded value (the measure of the consolidated value of shareholder's interest in an insurance firm) of the insurance giant which is expected to be more than Rs 5 lakh crore. The market value is generally a four to five time multiple of the embedded value.

With the government expected to dilute 4-5% share, the issue size could be between Rs 65000-75000 crore, making it by far the largest IPO in India. It is also expected to introduce many new retail investors to the stock market as the LIC will give an opportunity to its policy holders to invest in the IPO. But many policy holders in small towns and rural areas do not invest in stocks and maybe do not even have a demat account. It will be difficult for many of them to open such accounts to be able to take advantage of the offer.

But there is no doubt that despite the expected huge size of the IPO and the gigantic valuation, there is a strong buzz about the LIC IPO, not only in India but across the world. The grey market expects a good premium and retail investors are gearing up to invest in the IPO. The success of the LIC IPO is also expected to kick- start the disinvestment process which was ignored in FY2021-22. Since the government has committed to invest enormous amounts in infrastructure in the next fiscal, it must look at disinvestment as a big source of generating funds.

 

Other Stories You Make Like

Editorials

Turmoil In Mollywood

Turmoil In Mollywood

NDA 3.0: Coalition Dharma

NDA 3.0: Coalition Dharma

In Depth

Supreme Court Gets Strict On Child Pornography

Supreme Court Gets Strict On Child Pornography

Editor's Pick

Budapest Chess Olympiad: India Are World Team Champions

Budapest Chess Olympiad: India Are World Team Champions
© 2014 India Commentary. All rights reserved.