Now, here is a thing to understand that now LIC is diluting only 3.5% of its shares in the market. In return, LIC will raise 20,557 crores from the market at the valuation of 6.07 lakh crores. That means, at a valuation of more than 6 lakh crores, this money will be raised from the LIC market. Now, you need to know some important dates and figures.
So, I will tell you about it quickly. Then will share something important with you. Now, the bidding dates for the LIC IPO will be from 4th to 9th. That means, you can place your bid between 4th to 9th if you want to apply for this IPO. But you will say, sir, whether to do it or not. We are going to do detailed analysis on this, but first let’s know the figures. The price range will be from 902 to 949. Now, here you will say that the employees were going to get a discount, the policyholders were going to get a discount.
So, there is a piece of very good news for you all that the employees and the retail category are both going to get a discount of 45. So, here LIC has not made any difference for its employees and retail. Here, the retail will also get discount of 45. This means if you look at the upper range of the price, subtract 949 from45, then the price will come down. If you multiply this by 15 lots, then you will get an investment. If you want to apply for one lot, then your investment will be 13,560.
The allotment date will be 12th. You will say, sir, there was a discount for the policyholder, where did it go? I will tell you that too. So, policyholders will get a discount of ₹60 instead of 45. If you are looking at the upper price range, then subtract 60from it. If your PAN cards linked to your policy, then you will get this benefit. We’ve talked about this before. So, I have made another video on LIC before. If you have not seen that video, then it is linked in the I button.
You can go and see it. Now, here the allotment will be on 12th.The credit in your Demit account will be on 16th and the listing will be from 17th May. After that, trading will start. Now, here, because I know that you have a lot of questions in your mind, so I felt that not only I should answer those questions. Important dates and figures I have told you, but now I want to get your questions answered by an expert.
So today, Mr. Ninesh Thakkar is connecting with us with Fisdom, who has more than 15years of experience in the stock market. He has seen hundreds of IPOs in front of him and he has exactly a lot of knowledge and information that will be very useful for youth take this decision whether to apply for LIC IPO or not.
So, I will connect you directly with him. Watch the video till the end. You will learn a lot today. So here we go. So, Mr. Nines, welcome to our Go Self-made show. You took out your time from your busy schedule for our audience. So my audience is also very excited to learn so much from your experience today. So first of all, thank you so very much sir. Thank you, Pushkarji.
Extremely happy and excited to talk to your audience on the LIC IPO. Today’s most talked about IPO, LIC, we will talk about it with your audience, its strengths and weaknesses. So let’s talk about the LIC IPO. What a thing, sir. Well, definitely sir, I have a lot of questions to ask you on the LIC IPO.I have a list of questions for my audience. You and I know about this, but people got very excited in the middle. There was a lot of discussion in the market that the LIC Impose coming.
People started thinking that the IPO is going to be on these dates. But after that, things changed suddenly. Then the IPO did not come. It has been announced again that you can start bidding from 4th May, between 4th and 9th.So according to you, why did it happen that when the IPO was coming earlier, it did not come, it came again and now what has changed?
In fact, you will be able to tell it better thane. So please answer this question to our audience first of all. Sir, the government announced that we will bring the IPO, they were going to bring it in the next 2-3 months because they had to fulfill their target of disinvestment. So they announced it first but after that the events that have happened in the markets, like you see geopolitical tensions, the tensions of Russia and Ukraine, because of which the sentiment of the market has become very bad.
And in bad sentiment, it becomes tough forth government to remove the IPO from local retail institutions. That is why the government postponed the IPO for the time being. Now when geopolitical tensions have reduced, markets have started increasing, the government has realized that thesis the right time to come out with the issue. That is why this time they have offered to sell 3.5% stake. So this time the holding of LIC, the total IPO shares, is only 3.5% in the total company’s valuation.
That means they are raising about Rest 20,000 crores in the market and the full valuation of LIC will be around 6 lakh crores. So they will only take Rs20,000 crores from the market. So the shares in the market are very less. So the matching of demand and supply will be very exciting to see this time. Supply is very less; demand will be very high.
So for the span, all the institutions, retail, everyone is excited. So sir, if we talk about 2019, when the IRCTC IPO came, it was 111 times subscribed, as far as I remember. So there was a subscription of more than100 times, there was so much demand.
And in fact, after that, the share price has also run. So according to you, is something like this going to happen in Likes, Mr. Pushcart, actually, if we talk about LIC, then you will understand the business. Let’s talk a little about business. LIC was founded in 1956.In 1956, the government founded LIC. And for 2000, LIC was the monopoly in the market.
For 20 years, LIC was the only player in the market that was selling policies. The government has made LIC by adding 245 private life insurance. Now I will give you just one example. When LIC was made, in the whole country, in India, LIC has a reach in 91%districts. LIC’s policy is sold to 91% districts. 71% of LIC’s total business comes from rural India. You can understand how big this business is, how far it has reached. Now, the businesses we see today are only in urban areas.
The clients or the business contributors are only inurbane cities. LIC is not like that. It is selling products like insurance to India. It has reached the rural area. Like IRCTC, Rail is a monopoly business. Rail is a government holding. LIC is also a government gem. LIC is the biggest investor in the market. Accordingly, LIC’s valuation and business model is very exciting for retail. That’s why the government is not selling the entire stake. It is selling only 3.5%.
The government will also give more stakes to retail as the valuation increases. This means that at the start, there is very little dilution. Sir, there are 2-3 questions that arise here. If the government is also doing strategic planning like selling3.5%, hype will be created in the market, share price will increase, valuation will increase, then you can do some more disinvestment. In fact, they have taken special permission from SEBI as when we talk about the size of IPO above 10,000 crores, it is generally seen that companies dilute their shares above 5% which LIC has not done.
It is a special case. Another question that arises here is that if we talk abiotic, as you said, there was a monopoly up to 2000. But here we take the disadvantage that in the market it is generally seen that private companies can offer better service or better product to the customers. And here if we talk about competing, we cannot compare with IRCTC as no one else is running rail in India. But there are multiple companies in insurance companies now.
And in fact, there are big brands like Tata, Bajaj, so there are n number of players in the market. So if there are so many big players in the market and private players are doing well in the market, then do you think thali will be able to do anything for the business of Litchis question is for many people. If you look at the business of LIC, you will find that it has Is there a risk that the business will suffer in the future? Almost 13 lakh agents.
As I said, the rural reach is very high. The revenue is coming from rural areas. If you talk about policies, the one thing that comes to your mind is trust. When you talk about trust, it goes to the government. LIC has that government pay.
Because of this, a lot of policies are being sold which are LIC policies. If you go to see statistics, you will see that 64% of the market share is with LIC. Today, 64% of the market share is with LIC.LIC is an agent-heavy business. They are selling policies through their agents through personal touch. The other players are selling policies through online mediums. This is a big difference. When it comes to trust, one-on-one connection and human touches very important.
Another statistic is that 55% of total agents are selling LIC policies. In India, there are 100 agents and 55% are selling LIC. Every second agent is an LIC agent. This is a big thing. So, understanding the rural market, there are only 3% of the population in India who have insurance. The remaining 97% do not have insurance.
This insurance penetration has not happened through online mediums yet. Online is increasing but there is no penetration yet. The penetration of insurance will happen only through physically agents. These agents give you employment opportunities.
A lot of youngsters are becoming LIC agents in tier 2 and tier3 cities. They get 30% to 35% premium. They get recurring income as long as the premiums are paid. So, for them, it has become a business model. It has become an employee.
Because of this, the reach is increasing. People are understanding that risk should be covered. I have recently read that if you need money for an emergency, in India, we have only 17 rupees out of 100 for emergencies.83 rupees is something we lack. People who have 3% insurance do not have enough insurance. So, you can understand that the insurance market is still under-penetrated. If it has to be penetrated, it has to be from the market leader, LIC.
LIC has also understood that policies are not being sold through online mediums. If you look at the last 2 years, LIC has also made its online portal. It has also started urban reach. So, that is also contributing to business. So, I understand that private players are better service-wise. But the claim ratio is almost the same for everyone. But LIC’s reach will not reach any other insurance player. Sir, if we talk about retail, about 30% of the reservation is in the retail category.
So, out of the 20,000 crore companies, 30% is going to be in the retail category. Isn’t it a big amount that so much money is being taken from retail? Yes, absolutely. The retail minimum amount is around Rest. 15,000.15 into 949, so basically around Rest. 15,000.So, if you go and see, the retail participation is very high. There are a lot of retail participants who are interested in IPOs. So, according to that, Rest. 6,000 crores will not be a big dealt raise from retail.
And I also understand that even though they have not given discount to the institution, but there will be oversubscription from the institution as well. Even though they are going to raise Rest. 9,000 crore from the institution, but that too will be highly oversubscribed. But some people want to know the benefits of FISDM because some people already have a Demat account. So, why should they opt for FISDM?
So, our FISDM app is a total wealth platform where you can use mutual funds, Demit, trading account, insurance, all products, you can use products like tax filing. And our equity platform is a trader-centric platform. Our equity SIP and functional Reuters’ stock loss reports are taken for free by all clients. Our competitors are charging for these stock loss reports. We give these fundamental reports to our clients for free of cost. And we have very exciting plans for traders.
Our plan for traders is called Freedom Plan. Where they fill subscription amount and do unlimited trading. So, once you open an account, take a subscription plan, take year-long plan, then you do unlimited trading in any segment and we will not charge you a brokerage. We will not charge you a brokerage, but we will give you a dealing support, a terminal, a super trade terminal. We will give that to our users. So, users get all trade facilities in one application, in one desktop.
Very nice, sir. I think this is very exciting. Because a lot of people do regular trade and they end up paying lot of commission. So, if you have such plans, it is a help to users. So, finally, sir, we need a final suggestion from you. Will you clear cut whether they should apply for the LIC I Poor not? Absolutely, for all the users today on our channel, LIC IPO Isa must apply. Because there is a lot of scope for insurance as a sector. Insurance is a growing sector.
As I said, India is under-penetrated in insurance. So, the scope is very good. LIC, as a business leader, is the5th largest insurer in the world. It is the 5th largest insurer in the Indian insurance collection. And it is India’s largest insurer. So, this is an opportunity for you to take a stake in this insurance. Their assets are 1.1 times that of the mutual fund industry.
We have assets worth 40 trillion. LIC has assets. So, it is a very big company. Big vision. For sure, anyone in the insurance sector, if you want to get exposure, LIC will be a very good bet and a long-term play for everyone who wants the right value.
Sir, there is one more question. I am asking a lot of questions. People have applied. Let’s assume they got an allotment. They got a good listing gain. So, whether they should sell after the listing or hold it for long? Or they should buy more after the listing? What do you suggest? So, in my opinion, obviously, it depends on the demand supply.
But ideally, companies like this, gems like this should be held. We have seen in the past history, when the government distributes small shares of its gems and disinvests, how their valuation increases, LIC is also doing the same thing.
So, my opinion is that you should hold for a long term. Take the benefit. It is very difficult to get a stake in such businesses. Amazing, sir. I think you have given a very good answer to all the questions that people might have in their minds. And even after this, if there are still some questions left, I will ask them. You can ask in the comments.
We will try to take time from Nines jig again and get you alto meet. Because as you said, people will get cashback if they apply folic APO. So, this is a wonderful opportunity for people. And if people think that they have a benefit from the other benefits that you have told, they should opt for its, thank you very much for your time, sir.
And we will meet again for sure. Thank you so very much. So, I hope you have learned a lot today. But we will not end this video like this. Today, there is a quiz for you. You have watched the video till the end, right? So, you tell me, we talked about the assets of LIC in this video. So, you have to write in the comment how many assets domestic have today.
I will know how much interest you take. And how much interest you have, you listen to the information that we give you in the blogs. Another great benefit of having an account on Fizz Dum is that you can apply for LIC APO from WhatsApp. And in fact, when you apply, the fee charged for the account opening will also be refunded 100%.So, you can take both these benefits from the Fizz Dum account.