Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

The Government of India has been divesting its stake in Central Public Sector Enterprises (CPSE) and other public companies held by the Specified Undertaking of the Unit Trust of India (SUUTI) through the ETF route via the <a href="https://www.smartkarma.com/entities/cpse-etf" target="_blank" rel="noopener" data-smartkarma-citation="entities:28191:1">R* Shares CPSE ETF (CPSEBE IN)</a> and <a href="https://www.smartkarma.com/entities/bharat-22-etf" target="_blank" rel="noopener" data-smartkarma-citation="entities:28307:1">BHARAT 22 ETF (ICICIB22 IN)</a> ETFs.Since launch, the <a href="https://www.smartkarma.com/entities/cpse-etf" target="_blank" rel="noopener" data-smartkarma-citation="entities:28191:1">R* Shares CPSE ETF (CPSEBE IN)</a> ETF has raised INR 665bn while the <a href="https://www.smartkarma.com/entities/bharat-22-etf" target="_blank" rel="noopener" data-smartkarma-citation="entities:28307:1">BHARAT 22 ETF (ICICIB22 IN)</a> ETF has raised INR 416bn. The AUM for the two ETFs as of the end of January 2020 is INR 90.75bn and INR 67.53bn respectively.With the Government looking to raise funds from divestments to bridge the fiscal deficit, we look at the relevance of the ETFs in meeting this objective and identify stocks that would need to be excluded from the indices for the Government to continue with further fund offerings.

The Government of India has been divesting its stake in Central Public Sector Enterprises (CPSE) and other public companies held by the Specified Undertaking of the Unit Trust of India (SUUTI) through the ETF route via the R* Shares CPSE ETF (CPSEBE IN) and BHARAT 22 ETF (ICICIB22 IN) ETFs.Since launch, the R* Shares CPSE ETF (CPSEBE IN) ETF has raised INR 665bn while the BHARAT 22 ETF (ICICIB22 IN) ETF has raised INR 416bn. The AUM for the two ETFs as of the end of January 2020 is INR 90.75bn and INR 67.53bn respectively.With the Government looking to raise funds from divestments to bridge the fiscal deficit, we look at the relevance of the ETFs in meeting this objective and identify stocks that would need to be excluded from the indices for the Government to continue with further fund offerings.

India - The Future of CPSE and BHARAT22 ETFs & Potential Rebalance Candidates

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.

Equity Capital Markets

Life Insurance  of India / Equity Capital Markets

On 1st of Feb 2020, the Indian finance minister announced the government of India’s (GOI’s) intention to list LIC before the end of the next financial year, i.e. before Mar 2021. This will be the biggest IPO in India, ever, and upon listing it will become one of the largest, if not the largest, listed companies in India.It’s still early days for the listing, and as always there is a high likelihood of missing the listing deadline. Nonetheless, the ball has been set rolling and thus, the company will be listed sooner or later. Life Insurance Corporation (LIC) was established in 1956 via the Life Insurance Corporation Act, 1956. It was a result of nationalisation of life insurance business in India by transferring all such business to LIC. As of FY19, it had a market share of 42% in individual new business premium and a market share of 66% of total first year premium.In this note, I’ll do a quick comparison of LIC with some of its listed private sector peers to arrive at some very preliminary valuation numbers. I’ll also highlight some of the hurdles that the deal will have to cross.

On 1st of Feb 2020, the Indian finance minister announced the government of India’s (GOI’s) intention to list LIC before the end of the next financial year, i.e. before Mar 2021. This will be the biggest IPO in India, ever, and upon listing it will become one of the largest, if not the largest, listed companies in India.It’s still early days for the listing, and as always there is a high likelihood of missing the listing deadline. Nonetheless, the ball has been set rolling and thus, the company will be listed sooner or later. Life Insurance Corporation (LIC) was established in 1956 via the Life Insurance Corporation Act, 1956. It was a result of nationalisation of life insurance business in India by transferring all such business to LIC. As of FY19, it had a market share of 42% in individual new business premium and a market share of 66% of total first year premium.In this note, I’ll do a quick comparison of LIC with some of its listed private sector peers to arrive at some very preliminary valuation numbers. I’ll also highlight some of the hurdles that the deal will have to cross. 

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO

India

Life Insurance Corporation of India operates as an insurance company. The Company provides life, pension, health, and micro insurance products and services. Life Insurance serves customers in India.

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Life Insurance of India (LICI IN)

India - The Future of CPSE and BHARAT22 ETFs & Potential Rebalance Candidates

The Government of India has been divesting its stake in Central Public Sector Enterprises (CPSE) and other public companies held by the Specified...

Brian Freitas

Life Insurance Corporation of India Pre-IPO - Early Take on India's Largest IPO

On 1st of Feb 2020, the Indian finance minister announced the government of India’s (GOI’s) intention to list LIC before the end of the next...

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

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