oppn parties LIC IPO Opens On May 4

Story Of The Day

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

January 22, 2025

People Are Talking About

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

News Snippets

  • Sikh extremists attacked a cinema hall in London that was playing Kangana Ranaut's controversial film 'Emergency'
  • A Delhi court directed the investigating agencies to senstize officers to collect nail clippings, fingernail scrappings or finger swab in order to get DNA profile as direct evidence of sexual attack is often not present and might result in an offender going scot free
  • Uniform Civil Code rules cleared by state cabinet, likely to be implemented in the next 10 days
  • Supreme Court reiterates that there is no point in arresting the accused after the chargesheet has been filed and the investigation is complete
  • Kolkata court sentences Sanjoy Roy, the sole accused in the R G Kar rape-murder case, to life term. West Bengal government and CBI to appeal in HC for the death penalty
  • Supreme Court stays criminal defamation case against Rahul Gandhi for his remarks against home minister Amit Shah in Jharkhand during the AICC plenary session
  • Government reviews import basket to align it with the policies of the Trump administration
  • NCLT orders liquidation of GoAir airlines
  • Archery - Indian archers bagged 2 silver in Nimes Archery tournament in France
  • Stocks make impressive gain on Monday - Sensex adds 454 points to 77073 and Nifty 141 points to 23344
  • D Gukesh draws with Fabiano Caruana in the Tata Steel chess tournament in the Netherlands
  • Women's U-19 T20 WC - In a stunning game, debutants Nigeria beat New Zealand by 2 runs
  • Rohit Sharma to play under Ajinkye Rahane in Mumbai's Ranji match against J&K
  • Virat Kohli to play in Delhi's last group Ranji trophy match against Saurashtra. This will be his first Ranji match in 12 years
  • The toll in the Rajouri mystery illness case rose to 17 even as the Centre sent a team to study the situation
Calling the case not 'rarest of rare', a court in Kolkata sentenced Sanjay Roy, the only accused in the R G Kar rape-murder case to life in prison until death
oppn parties
LIC IPO Opens On May 4

By Linus Garg
First publised on 2022-04-27 10:54:30

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.

The government has finally decided to go ahead with the LIC IPO albeit with a reduced issue size as it is now diluting just 3.5% equity instead of 5% proposed earlier due to uncertain market conditions. The IPO will open on May 4. The price band has been fixed at Rs 902-949 with a lot size of 15 shares for application. This amounts to about Rs 20000cr depending on the final price, making it the largest ever IPO in India. LIC policyholders will get a discount of Rs 60 on the issue price and retail investors and the staff of the insurer will get a discount of Rs 45.

Although the price band is not very high given the valuation of the insurance behemoth, the huge size of the IPO has not enthused punters with the grey market premium ruling at just Rs 20-30 per share. But LIC shares are not for short term profits. They are to be held on a medium to long term basis to add value to one's portfolio as it is a solid company that is going to create value for its shareholders. While experts have said that government interference in the affairs of LIC might reduce value for shareholders, once disinvestment happens, the government will have to act responsibly and will not be able to dip into LIC's huge cash chest to bail it out in difficult financial situations. Given the stranglehold LIC has on the insurance market, smaller, smarter and nimble-footed firms will take a long time in catching up and LIC is also expected to introduce best business practices to keep abreast of the competition.

Policyholders and retail investors should invest in the LIC IPO with a medium to long term view as the price band is reasonable and the future looks good for the company. 

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.