[maktags]

Originally Posted by Sran

Got half of LIC shares in allotment against the bid. Anyone else?

Same here, got 15 shares after applying for 30 shares. Got the policy holder discount so might not bleed a lot on listing day

[fiat_tarun]

For the LIC IPO, I had applied for 30 shares under policy holder category and 15 under retail and have been allotted 15 under the policy holder quota and 15 under retail.

I only recently started investing in direct stocks and this is the my first IPO allotment. While the listing might be damp, I expect it to do well in the long term.

[saket77]

I didn't apply for the LIC IPO- Firstly, my opinion is that LIC has been offered at a high premium.Though LIC has very strong financials and has a strong brand image, but I am wary of it even as a long term investment for 2 main reasons- one that due to the private players becoming more and more aggressive day by day, the market share of the LIC is likely to decrease over time. Gone are the days when people only trusted LIC for insurance. Other private players are designing & marketing their products very aggressively and this is something which LIC is lacking.

Secondly & more importantly, there will always be a Govt. pressure on LIC to bail out the banks or other big institutions if & when they fail. In short, the sole purpose of share capital will not be to create value for share holders. Funds may be used to bail out something like IDBI, Yes bank as in the recent past. These decisions may not be in the interest of shareholders; even in the longer term. Plus, although the Govt tried everything to make this IPO a success but the recent turmoil in the stock market itself will take it's toll on its listing. This is kind of a systematic risk which cannot be eliminated and I expect these market conditions to hit the listing as well. So, I am expecting a subdued listing (or even a negative).

[Fuldagap]

Originally Posted by saket77

Funds may be used to bail out something like IDBI

While concurring with your rest of the post, IDBI did not need bailing out. IDBI in it's former avatar had been an institution that was a forerunner in building the core industry of the nation.

However, after 2014 there was a systematic way in which it was tried to privatise the current IDBI bank. LIC was the solution that was used to achieve this task. At the time when it was acquired by LIC, a very huge record of policies were sold in a single day leaving all previous LIC records in the dust. This was achieved by making each and every IDBI employee buy a certain LIC policy mandatorily and without fail. There were a minimum of 15k employees at that time in IDBI.

Don't know currently, but for many many years IDBI had continuously been at the no. 1 spot when it comes to per employee profitability, leaving behind behemoths like SBI, ICICI, HDFC etc.that too with a wide margin. IDBI was the only bank that used to fall under 'other govt bank'. Rest all govt banks fall under 'privatised bank' category. Even today there are few banks in the country as agile and technologically robust as IDBI. It did not need any bailing out, it was just political vendetta for reasons that go long back in history.

[saket77]

Originally Posted by Fuldagap

While concurring with your rest of the post, IDBI did not need bailing out. IDBI in it's former avatar had been an institution that was a forerunner in building the core industry of the nation.

While I agree that many PSUs and also IDBI (apart from many other banks) were instrumental in shaping up the Indian economy after 1947 but let’s not forget the facts:

- IDBI’s NPA was at record high, hovering at around 30% which is more than any of the banks.

- IDBI was running in loss for last several quarters.

- IDBI’s capital adequacy was in shambles and RBI had to curb lending by the bank. To ensure further lendings, capital adequacy ratio needed to be pumped up and that could have been done only by recapitalising the bank by the government. And LIC was chosen for that propose.

- As a reflection of these adverse situations, the share price has plummeted to less than half.

LIC might have been happy with their insurance business surging for the reason you stated in your post but sure they weren’t happy with the share price plummeting by more than 50% after buying the stake. LIC pumped more than 4700 crores (of policy holder’s money) apart from the government. This made LIC hold 51% of the total stake. Even today, LIC and GOI combined hold more than 90% of total stake in IDBI.

Now if government policies and politics etc were among the reasons to push IDBI to the brim, then it will be a different discussion. But I will stand by my statement that yes, IDBI was bailed out by LIC using the policy holders money which could have been used better and this affected the policy holder’s bonuses.

Regards.

[Fuldagap]

Originally Posted by saket77

Now if government policies and politics etc were among the reasons to push IDBI to the brim, then it will be a different discussion.

Yes. There is a lot of history involving the birth of IDBI then tussle with certain governments and also the acquisition of UWB in Maharashtra by IDBI which had the backing of a certain political and religious outfit. Not suitable to discuss that here

The rest of your post is spot on again. And if bailing out means making situations to make an entity that requires bailing out then yes IDBI was certainly bailed out.

In the open media, HinduBusinessLine is one source that follows all IDBI happenings religiously and authentically.

I also mistyped 'privatised banks' when I was supposed to type 'nationalised banks'. Tried to edit but some database error kept on popping up.

[whitewing]

This meme on LIC IPO :-)

[ValarMorghulis]

All stocks are bleeding today.

TCS, Infy, HCL down 6%
SBI, ICICI, HDFC all down
Maruti, TaMo down
GAIL, CoalIndia down

[comfortablynumb]

Thinking of buying a few shares of UltraTech Cement for long term. Could Gurus suggest what could be a good price? It's at 6052 as I write this post.

[fordday]

Originally Posted by ValarMorghulis

All stocks are bleeding today.

TCS, Infy, HCL down 6%
SBI, ICICI, HDFC all down
Maruti, TaMo down
GAIL, CoalIndia down

Though actually difficult to implement but we must keep all our cash in hand waiting for a day like this.

[Latheesh]

Originally Posted by fordday

Though actually difficult to implement but we must keep all our cash in hand waiting for a day like this.

I tried to make some lumpsum investment in Nifty index fund today. No, my bank (HDFC) refused to send OTP to my mobile to complete the transaction.

edit: what is happening with ITC?

[fordday]

Originally Posted by Latheesh

I tried to make some lumpsum investment in Nifty index fund today. No, my bank refused to send OTP to my mobile to complete the transaction.

edit: what is happening with ITC?

Is it SBI?
SBI group ditches you just when you need them the most.
Today my SBI Securities trading account could not 'talk' to SBI. So could not invest from there.

Put money in my ICICI direct account and bought some.

I have said this many times here. Nothing beats ICICI direct.

[download2live]

Originally Posted by Latheesh

I tried to make some lumpsum investment in Nifty index fund today. No, my bank (HDFC) refused to send OTP to my mobile to complete the transaction.

edit: what is happening with ITC?

You will thank HDFC in coming months. This is the start. Unless you are investing every month as part of a plan , it will be worth waiting.

[RoadTiger]

Unsolicited advice, based on my investing experience

Markets likely to go down further
Could be the start of a multi-month downturn
Dont be sucked into investing too early, assuming stocks look cheaper than last month
Dont guess the bottom - wait for definitive signs of an upturn

The market run was driven by a lot of cheap money (due to low/ zero interest rates globally) chasing assets - and there were excesses - leading to this massive inflation world over particularly with US sitting at 8-9% (unprecedented in decades). The Fed (and the US Govt) now realizes there is a need to tame the inflation monster - and doesnt mind inflicting some pain on the equity markets to do the same. Will be a very tough act for the Fed to raise rates aggressively as they should (need to) over the next year or so - without breaking something.

[Sran]

Originally Posted by comfortablynumb

Thinking of buying a few shares of UltraTech Cement for long term. Could Gurus suggest what could be a good price? It's at 6052 as I write this post.

Rs 6000+ shares for long term? I am not into trading deeply or anything just a regular Raj, so I mean how much shares can anyone buy at that price point, it's a lot of money for 500 or 1000 shares. I think these stocks are generally traded intraday for swings using margin or by asset traders. I can see sep,21 it was at 7800 so its support is already near 7500.