Life Insurance Corporation of India (LIC) has filed draft prospectus for an IPO. According to reports, the government of India will sell 5% of its stake, fetching between INR 60,000 crore and INR 75,000 crore, thus pegging LIC’s market value #value between INR 12 trillion and INR 15 trillion respectively.

To get through a difficult market, LIC is counting on its 1.3 million agents and more than 250 million #policyholders. Up to 10% of LIC IPO will be reserved for LIC #policy holders, according to the draft papers.

#LIC IPO will be purely an #OFS (offer for sale) #transaction. So, does it matter if the IPO is completely OFS?

Before that lets talk about what can LIC bet on?

LIC has a #high #disposable #income that it can put into new-age #businesses, where it can benefit from #technological #advancements and earn a lot of #money.

Having said that, to establish new product #offers and cater to new-age #clients, LIC will need to invest extensively on #advertising, marketing along with #technologies like #blockchain and #artificial intelligence.

According to a report, Rs 10 out of every Rs 100 saved by Indian households each year goes to LIC. However, when choosing an IPO, investors must be cautious and selective. They shouldn't apply the same brush to all stock offerings.

It's crucial to note, however, that the market has been shady in awarding victors. High-profile listings have been punished, while obscure listings have been rewarded. However, a poor listing should not be interpreted as a sign of disfavor. In 2021, almost 70% of IPOs achieved #positive #returns above their offering prices, with nearly a quarter returning 100% or more.

According to ET times article, a look at listing day performance shows that 3 out of the 14 OFS showed a loss; 11 had gains. The current market prices of these companies show that only 5 out of 14 are in a loss with respect to the #issue #price; 9 are in the #profit zone.

So, OFS market debuts were mixed. This refutes the claim that OFS is usually #pricey and leaves #investors with nothing.

What are your thoughts? between INR 12 trillion and INR 15 trillion respectively.

To get through a difficult market, LIC is counting on its 1.3 million agents and more than 250 million policyholders. Up to 10% of LIC IPO will be reserved for LIC policy holders, according to the draft papers.

LIC IPO will be purely an OFS (offer for sale) transaction. So, does it matter if the IPO is completely OFS?

Before that lets talk about what can LIC bet on?

LIC has a high disposable income that it can put into new-age businesses, where it can benefit from technological advancements and earn a lot of money.

Having said that, to establish new product offers and cater to new-age clients, LIC will need to invest extensively in advertising and marketing along with technologies like blockchain and artificial intelligence.

According to a report, Rs 10 out of every Rs 100 saved by Indian households each year goes to LIC. However, when choosing an IPO, investors must be cautious and selective. They shouldn't apply the same brush to all stock offerings.

It's crucial to note, however, that the market has been shady in awarding victors. High-profile listings have been punished, while obscure listings have been rewarded. However, a poor listing should not be interpreted as a sign of disfavor. In 2021, almost 70% of IPOs achieved positive returns above their offering prices, with nearly a quarter returning 100% or more.

According to ET times article, a look at listing day performance shows that 3 out of the 14 OFS showed a loss; 11 had gains. The current market prices of these companies show that only 5 out of 14 are in a loss with respect to the issue price; 9 are in the profit zone.

So, OFS market debuts were mixed. This refutes the claim that OFS is usually pricey and leaves investors with nothing.

What are your thoughts?