stocks

IPO Review: LIC IPO – 3 factors to consider before subscribing

The Indian government, deciding to take its chances with market moods, has launched the long-awaited IPO of Life Insurance Corporation of India (LIC). This is entirely an offer for sale by the government to offload 3.5% of its holdings (2.21 crore shares) to the public, at an offer price band of Rs 902-949.  LIC will not receive any proceeds from the sale. Retail bidders will get a Rs 45 discount while LIC’s policyholders will get a Rs 60 discount. 

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What they don’t tell you about M&A

In an M&A, company A buys out company B, triggering positive and happy noises in the market. Share prices of both companies jump in joy on the announcement. The news then gets digested and analysed.  Shareholders of both companies realise after a bit, that they should have sold out in the first few days after the announcement, rather than swallow stories of ‘synergies’, ‘cost savings’, ‘market leadership’, ‘inorganic growth’ and other jargon that are usually peddled to sell mergers, in company releases and analyst reports. 

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Cement Industry: 5 things to know before you choose a stock

India’s cement industry has always been a good proxy for the core economy, with steady volume growth and players enjoying considerable pricing power unlike other commodities. With cement industry leaders such as UltraTech Cement, Ambuja Cements, Dalmia Bharat and Birla Corporation correcting between 10% and 20% in the last 3 months, could there be an opportunity? We take a deep dive into the cement industry to assess its prospects.

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Muthoot and Manappuram – Explaining the valuation divergence

As the top two players in the oldest lending business in India, gold lending NBFCs Muthoot and Manappuram Finance don’t require much introduction to investors. Unlike other lending operations, gold lending still requires the physical presence of the customer and therefore fin-tech challengers are yet to figure out a way to crack this lucrative business. The adoption of digital technologies in gold lending is restricted to bank transactions and sales origination.

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LIC IPO – the elephant makes an entry

On the LIC IPO, a lot is at stake. Rules have been bent, timelines collapsed and all the corners cut to meet deadlines and valuation numbers. The secondary market price is extremely critical for the government as it will decide the annual dilution of five percent that is likely to happen, to reduce the government ownership to seventy five percent over five years. So, for those who are worried about the price now, there is hope.

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