LIC IPO Opens on Wednesday: Should First-Time Investors Subscribe to the IPO?

Life Insurance Corporation of India’s (LIC) Perdana Public Offering (IPO) is ready to be opened to subscribe on May 4. The government plans to collect 20,557 Crore hospitals through this problem by disbursing 3.5 percent of shares in the state managed by the state giant insurance. It is hoped that there will be many investors, who have no previous parking experience in the IPO, will take part in the sale of LIC’s initial shares. They will try to participate in the subscription process as possible for the first time.

Stopping rally in stock since the outbreak of Pandemi has captivated a younger cohort and technology understands. Meanwhile, growth in the Demat account is ready for other big jumps with Lic IPO which is awaited this week.Mei is likely to be a month’s record for opening a Demat account, said Varun Sridhar, CEO of Paytm Money. “This (Lic IPO) is a milestone event for the Indian capital market,” he said.

Lic, clearly, not an ordinary company that goes to the stock market to collect money. Formed by the Parliamentary Law by combining 245 private insurance companies in 1956, this is the fifth largest insurance company in the world in terms of gross premiums. The company has more than one LAKH employee, nearly 5,000 offices and around 14 LAKH agents. This manages assets worth RS38 Lakh Crore, which is 15 times more defeat than those managed by SBI Life, the second largest insurance company in India.

The government wants the policy holder to enter by buying to their insurance company and has set aside 10 percent of the total equity shares offered exclusively for policy holders and employees, with discounts. LIC has conducted an overdrive advertising and public campaigns, calling for policy holders to update their PAN numbers and be eligible to submit these 10 percent, and encourage LIC agents to deliver messages.Parth Nyati, Founder, Tradingo said, “LIC is the largest life insurance in India, with a market share of 61.6 percent in terms of premiums (or GWP), and 71.8 percent of the market share in terms of the number of individual policies issued at the time of 31 December 2021. LIC is identical to insurance in India and enjoying a phenomenal brand withdrawal. We believe that the Indian life insurance room is very lacking in a new stage and is attractive to capture very large growth opportunities. LIC enjoyed many competitive advantages such as strong brand values, very large scale operations, very large agent networks, and jealous distribution networks. . This problem is valued ~ 1.1 times the value embedded, which is a steep discount compared to its Indian & Global colleagues. However, investors must first realize that the insurance business is long -term; Therefore we recommend this problem only for the long term. ” To seduce the first younger investor, LIC was launched a digital campaign on social media. Broking Religie, for example, launched the Lic Pra-Apply IPO application. “For this young generation, Lic may not appeal as a risk partner. But when it comes to invest, it will definitely, “said Ajit Misra, Vice President & Senior Technical Analyst with Religare Broking.

Should First Time Investors Subscribe the LIC IPO?

The list that succeeded in exceeding potential risk. And ‘right size’ this problem is a good step. The assessment is “fair and attractive”, said Tuhin Kanta Pandey, secretary, investment department and public asset management. “We want to fight for LIC as the creator of the long -term value in the equity market. IPO is the first step in creating a long -term value for LIC shareholders. “

B. Gopkumar, MD & CEO, Axis Securities said, “We believe that investors must first apply to this problem because it allows the applicant to invest in market leaders with a long runway. Although there is doubt about the first investment, we believe that investors will be guaranteed by a long legacy and solid brand value and remember that LIC enjoyed. Registering to this problem allows the first investor to directly have shares in a strong brand in ‘Bharat.’ In addition, discount expectations for retail and policy holders, allowing a slightly higher return, can encourage the first investor to this problem. “He also warned that while short -term market volatility tends to burden stock performance, we remain positive from a long -term perspective.