The Mega IPO of Life Corporation of India (LIC) opens between 4th May to 9th May 2022. It is the biggest IPO that the Indian Capital Market has ever witnessed with an issue size of Rs 21,000 Cr.
Looking into the IPO, the LIC price band is between Rs 902 to Rs 949 per share. The IPO offers a retail discount of Rs 45 per share and an employee discount of Rs 45 per share. The retail shares offered are not less than 35% of the net offer.
The company promoter is the President of India, acting through the Ministry of Finance, and the Government of India (GoI) is the company promoter. The LIC IPO will be listed on NSE and BSE.
Performance of the Biggest IPOs in India
LIC IPO has towered the One97 Communications (Paytm) IPO, the second-biggest IPO ever in India. However, historically, the large IPOs have not performed quite well in the long run in the Indian equity market. The performance of Paytm has been poor since its listing. The Paytm IPO price was Rs 2,150. It is currently trading at a Share Price of Rs 601.
Here is the detail of the few biggest IPOs in the Indian equity market with their issue size and their fall in the price since listing:
- Paytm (Rs 18,300 Cr): -61.49%
- Coal India (Rs 15,475 Cr): -46.14%
- Reliance Power (Rs 11,563 Cr): -94.09%
- General Insurance Company (Rs 11,372 Cr): -68.14%
- SBI Cards (Rs 10,354 Cr): -20.45%
- NIACL (Rs 9,600 Cr): -65.51%
- Zomato (Rs 9,375 Cr): -44.64%
What the Analysts are Recommending?
The majority of the analysts have recommended a ‘Subscribe’ to the LIC IPO because of its strong market presence. LIC is the largest insurance provider in India with a market share of 61.6% in terms of premium and a share of 61.4% e in terms of New Business Premium. It holds dominance with a 71.8% market share in terms of the number of individual policies issued as of Dec 31, 2021.
