There’s a lot of hype surrounding India’s upcoming IPO. The market itself is still a bit of mystery. But there are several reasons why the market is set to be one of the most anticipated in recent times.For starters, Indian consumer sentiment has been on the rise for the last few decades, even as the country has become more technologically advanced and economically prosperous. In fact, according to the latest set of data from Credit Suisse, India has come out as one of the top three most digitally connected nations in this world. That’s not all; India also led in Internet users and mobile subscribers during Q1 2018 (the first quarter).And while India might have achieved these milestones among so many other countries around the world at such a young age, it remains to be seen whether it would be able to keep up with its peers in posting strong growth over time. This can only be further bolstered by the fact that its GDP per capita is less than half that of China’s — which had an average growth rate of 8.5% between 2015-17.These are all encouraging signs for investors hoping that Indian companies will be able to monetize their ideas effectively and build sustainable businesses at home and abroad through IPOs. But what makes this upcoming IPO even more exciting is that this will be India’s largest ever — beating BlackRock’s $105 billion IPO by a mile — if my math holds true (and you can believe me when I say I’ve done some math before investing in IPOs).
There’s another reason why this listing might just be worth your time: it comes at an opportune moment for Indians looking to cash out on stocks or buy into overseas funds that give them exposure to global markets through their IPOs or ETFs. Additionally, it will also boost investor confidence amid fears about stocks following differentiating factors like the government’s controversial move for demonetization (which caused volatility), and lower-than-expected inflation growth (which led some investors to cut funds into equities).To summarize: do you want more exposure? Do you want better returns? Do you want a great opportunity at low cost? Then look no further than India’s major listed companies starting March 5th — ICICI Securities’ IPO, Bank Bhatia’s IPO, Axis Bank’s IPO, and HDFC’s IPO (all listed since February 15th) together making up more than half of India’s $48 billion total
LIC to open India’s biggest IPO issue by mid-March
State-owned lender LIC has invited bids for its biggest IPO issue in five years to be listed on the stock exchanges by mid-March, a company official said.The eight-tranche offering of up to Rs 1,00,000 crore (US$160 million) will be announced in March after the Reserve Bank of India clears the listing process.The Indian rupee is under pressure as investors look to get out of high-yield assets and focus on safer assets such as stocks and bonds.Even so, Reliance Industries’ IPO last year was the second largest in history after the $100 billion listing of Microsoft Corp (MSFT) in 2000. The bidding for LIC’s listing will be open to institutional investors only and not retail investors, who are already jetting off to other countries for their shareholding stakes.”We’re inviting bids from institutional investors globally,” LIC Chairman and Managing Director S Vijaya Rangarajan told reporters at a financial services conference here on Tuesday. “Delivering liquidity and having an IPO is a great way to take advantage of market conditions,” he said.”We have selected Goldman Sachs and UBS as our financial advisers.”Rangarajan did not elaborate on why they chose Goldman Sachs or UBS, but sources said that it was because both banks are consultants and advisers have always been part of their business model. “They have worked with us before.” he added.LIC’s earlier planned IPO was scrapped after it found that it would face regulatory hurdles due to its status as a government-owned entity rather than a commercial bank. But since then it has been busy wooing potential buyers —including most notably US investment bank Goldman Sachs (GS), which was one of many bankers who had offered support for its planned IPO last year before dropping out because it thought there were too many hoops for L&T to jump through to participate in the offer.
LIC gets govt nod to raise up to $10 bn
After a long and tedious process, the Indian equity market finally got breathing room on Thursday morning with the government issuing a notification to open the biggest IPO issue in India’s history.Including the share issue, LIC will raise up to $10bn through three separate offerings.The first one will be priced at $5bn along with an offer of approximately 28 per cent of the shares, which are currently trading for about $0.67 per share.The second offering is priced at $3bn along with an offer of approximately 15 per cent of the shares and is currently trading for about $0.28 per share.The third one will be priced at $2bn along with an offer of approximately 11 per cent of the shares, which are currently trading for about $0.21 per share.Besides these three offerings, there is also a proposal from Reliance Capital and other investors to raise up to another $1bn in additional issues on top of that.These market participants : Reliance Capital (RC), Aditya Birla Group (ABG), Aditya Birla Financial Services (ABFS), Infrastructure Leasing and Financial Services Limited (ILFSL) , IDFC Zinc Limited (IDFCZ) and Tata Sons Limited (TSL) have been among those who have expressed interest in participating in the IPO, according to reports in The Hindu newspaper and Mint newspaper respectively on Thursday morning. They are expected to submit their bids on Friday morning.”
LIC IPO will be third largest in the world
Indian companies have been raising money at an unprecedented rate in recent years. The country’s biggest bank, State Bank of India (SBI), and the country’s second-biggest lender, LIC, have announced plans to open an IPO process for their shares.The offering is expected to be the largest in India since the 2003 IPO of Reliance Industries, which went on to raise $15.7 billion in a single share issue.This will also be the third largest IPO by a state-run bank after SBI’s 2004 IPO of shares worth $17 billion and State Bank of India’s 2008 IPO worth $12 billion.State Bank of India has already raised a record $14.4 billion over two issues in 2014 and 2015. Expectations for LIC’s IPO are high given that its market cap is about equal to SBI’s and its potential offer size is bigger than that of any other Indian bank that has gone public before.LIC joined SBI in 2011 after it merged with another lender as part of an effort by the government to reduce banks’ dependence on loans from private sector lenders. The merged entity was renamed as SBI Life Insurance Corporation Ltd (SBLIC).
Insurance regulator rules out minimum price for LIC IPO
As of mid-March 2018, the Indian Insurance Regulatory Authority (IRDA) has issued a notice to the LIC, which is one of the top four companies in the country with a market capitalization of over $20 billion. The notice was sent to the LIC and it has asked for a minimum price (minimum price) for its IPO. The IRDA has also said that through its order, it does not accept any handling fees for this issue and that this issue is expected to be completed in two weeks.The proposed IPO price is expected to be at least Rs 850 crore per share, according to IRDA officials. A company usually applies for an IPO if it wants to raise funds from domestic or foreign investors by offering them stock at a fixed price and using this money as security in order to raise money from international investors.
The Contribution of Life Insurance Corporation of
The idea of Life Insurance Corporation of India (LIC) has remained rather mysterious to the general public. One reason for this is that it was created in a time when there was no internet or smartphones in India. So, if you have been looking for some answers on this topic, don’t worry — we are here for you.LIC is an insurance company in India where the premiums are paid by premium payers and the policy holders are insured against financial loss due to illness or death. LIC is one of the four largest life insurance companies in the world with Rs 9.5 lakh crore market capitalization and is said to be one of the most stable exchanges in the world.The idea behind LICs was to create a common platform for all insurance companies so that they can set up business together without getting into big hiccups. The idea was also to make it more transparent and convenient for policy holders as they can book their policies online at any time, anywhere. It’s also been proposed that LIC will bring about transparency and accountability between different types of insurance companies, independent agents and brokers, who would be able to pool their resources so that they can offer better rates and better products at top end levels for policy holders. This would help achieve greater financial transparency among the various insurance players in the market as well as make it easier for policy holders to access information about their policies through websites like www.lifecoinsuranceindia.com .
