IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Life Insurance  of India / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/life-insurance-corp-of-india-lic" target="_blank" data-smartkarma-citation="entities:28829:1" rel="noopener">Life Insurance Corp of India (LIC) (1248Z IN)</a> is set to launch its IPO with the anchor investor offer period starting 2 May. The offer period closes on 9 May. </li>
<li>At the IPO price range of Rs902-949, the Indian government aims to raise $2.6-2.7 billion, which is materially lower than the initial target of $8.7 billion. </li>
<li>Following up on <a href="https://www.smartkarma.com/insights/life-insurance-corp-of-india-ipo-premium-market" target="_blank" data-smartkarma-citation="insights:65600" rel="noopener">Life Insurance Corp of India IPO: Premium Market</a>, in this note, we look at the latest developments from the Red Herring Prospectus. </li>
</ul>



Life Insurance Corp of India (LIC) (1248Z IN) is set to launch its IPO with the anchor investor offer period starting 2 May. The offer period closes on 9 May. 
At the IPO price range of Rs902-949, the Indian government aims to raise $2.6-2.7 billion, which is materially lower than the initial target of $8.7 billion. 
Following up on Life Insurance Corp of India IPO: Premium Market, in this note, we look at the latest developments from the Red Herring Prospectus. 


Life Insurance Corp of India IPO: Key Takeaways from the RHP

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>Government of India (GoI) is looking to raise around US$2.7bn via selling a 3.5% stake in Life Insurance Corporation of India (LIC) in its upcoming India IPO.</li>
<li>This is less than half of its initial plans in terms of fundraising target and comes at less than half of its initial valuation target.</li>
<li>We have looked at various aspects of the deal in our earlier notes. In this note, we compare it to its international peers and talk about valuations.</li>
</ul>


Government of India (GoI) is looking to raise around US$2.7bn via selling a 3.5% stake in Life Insurance Corporation of India (LIC) in its upcoming India IPO.
This is less than half of its initial plans in terms of fundraising target and comes at less than half of its initial valuation target.
We have looked at various aspects of the deal in our earlier notes. In this note, we compare it to its international peers and talk about valuations.


Life Insurance Corporation of India IPO - Regional Peer Comparison

External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

External broker reports(aggregated public sources)

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

Equity Bottom-Up

<div><div><div><div><ul><li>Product mix largely stable; non-linked growth decelerates: Overall individual product mix was largely stable in 4QFY22.</li></ul><div><ul><li>Margin improvement led by product mix: FY22 VNB margin stood at 27.4%, up from 26.1% in FY21.</li></ul><div><div><div><ul><li>EV up 13% YoY: Standalone EV increased by 13% YoY to Rs30.5bn.</li></ul></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Product mix largely stable; non-linked growth decelerates: Overall individual product mix was largely stable in 4QFY22.Margin improvement led by product mix: FY22 VNB margin stood at 27.4%, up from 26.1% in FY21.EV up 13% YoY: Standalone EV increased by 13% YoY to Rs30.5bn.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HDFC Life Insurance Company - Margin Expansion Led by Product Mix Improvement

External broker reports(aggregated public sources), Emkay Global Financial Services Limited

Emkay

Emkay Global Financial Services Limited

Emkay Global Financial Services Ltd. is a leader in the financial services sector, actively creating wealth for our clients for over two decades. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<div><div><div><div><div><ul><li>Robust performance amid challenging external environment: HDFCLIFE reported 17% YoY growth in APE in FY22 to Rs97.6.bn and 22% YoY growth in VNB to Rs26.8bn on a standalone basis.</li></ul><div><div><ul><li>Board approves Rs3.5bn sub-debt raise to boost solvency: Solvency margins for FY22 stood at 176% (vs. 190% at 9MFY22 and 201% at FY21).</li></ul><div><div><div><div><ul><li>Management confident about FY23 growth and margin outlook: Management sounded confident about achieving APE growth that is 2x the real GDP growth while gradually expanding standalone margins.</li></ul></div></div></div></div></div></div></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p></div>

Robust performance amid challenging external environment: HDFCLIFE reported 17% YoY growth in APE in FY22 to Rs97.6.bn and 22% YoY growth in VNB to Rs26.8bn on a standalone basis.Board approves Rs3.5bn sub-debt raise to boost solvency: Solvency margins for FY22 stood at 176% (vs. 190% at 9MFY22 and 201% at FY21).Management confident about FY23 growth and margin outlook: Management sounded confident about achieving APE growth that is 2x the real GDP growth while gradually expanding standalone margins.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HDFC Life Insurance - Year Ends Well; Confident Outlook for FY23

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<div><ul><li>Persistency trends steady - <span style="font-size: var(--content-font-size);">HDFCLIFE reported a 11% YoY growth in premium, led by a 16% growth in renewal premium and an 8% growth each in single/first-year premium.</span></li><li><p>Net premium grows 11% YoY; VNB beats our estimate - <span style="font-size: var(--content-font-size);">HDFCLIFE reported an 11% YoY growth in net premium income (in line).</span></p></li></ul></div><div><ul><li>Highlights from the management commentary - <span style="font-size: var(--content-font-size);">With the merger with Exide Life, the management aims to remain margin neutral.</span></li></ul></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Persistency trends steady - HDFCLIFE reported a 11% YoY growth in premium, led by a 16% growth in renewal premium and an 8% growth each in single/first-year premium.Net premium grows 11% YoY; VNB beats our estimate - HDFCLIFE reported an 11% YoY growth in net premium income (in line).Highlights from the management commentary - With the merger with Exide Life, the management aims to remain margin neutral.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

HDFC Life Insurance - In Line Result; VNB Margin Stood Robust

India

HDFC Standard Life Insurance Company Limited is a life insurance firm. The Company offers protection, pension, savings and investment, and children's and women's plans to individuals. HDFC Standard Life Insurance serves customers in India and United Arab Emirates.

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HDFC Life Insurance (HDFCLIFE IN)

Life Insurance Corp of India IPO: Key Takeaways from the RHP

LIC is set to launch its IPO with the anchor investor offer period starting on 2 May. In this note, we look at the key developments from the Red...

Arun George

Life Insurance Corporation of India IPO - Regional Peer Comparison

Government of India is looking to raise around US$2.7bn via selling a 3.5% stake in Life Insurance Corporation of India in its upcoming India IPO....

Sumeet Singh

HDFC Life Insurance Company - Margin Expansion Led by Product Mix Improvement

HDFC Life’s mid-single digit APE growth was in line with the larger industry trend, which has seen slowdown in growth due to strong growth in the...

Nirmal Bang

HDFC Life Insurance - Year Ends Well; Confident Outlook for FY23

After navigating smartly and delivering robust performance in an uncertain and challenging year FY22, HDFCLIFE management sounded confident about...

Emkay

HDFC Life Insurance - In Line Result; VNB Margin Stood Robust

Persistency trends steady; HDFCLIFE reported a 11% YoY growth in premium, led by a 16% growth in renewal premium and an 8% growth each in single...

Motilal Oswal

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