With Annual Eps of approx 4.75 and price band of 902 to 950 The pe of the offering is above 200 plus. The valuation of the offering is atrocious.
1. Investing in this IPO makes some sense for institutions if they plan to rebalance their portfolio between equity and debt with more focus on debt as high inflation is already destroying purchasing power of debt fund holders.
2. Equity markets have corrected from records high and do not offer any attractive valuation with sizeable liquidity.
3. In my view the offering is costly as overall liquidity post COVID is still high and in marketing psychology if u value urself high enough general masses will their may be a hidden value somewhere for company to value itself so high. It is widely known that associated banks are highly amenable in such offerings.
4. In my view this IPO should be govts way to offer higher liquidity to foreign investors who are getting negative yields globally and pull some liquidity in the country.
5. Neither should domestic fund managers nor retail should invest in LIC IPO at this juncture.best time to invest for those interested IN LIC would be at the bottom of next recession.