Some hope for rich gains in a few years
Many applicants are eagerly awaiting information about the allocation of LIC shares to come out.
Arun Harchandani, an LIC policy holder, informed The Observer: “The word LIC itself is a brand name….The added benefit of being a policyholder got me to subscribe to it.”
About the probability of being allotted shares of India’s largest insurer, he said: “I have applied for the minimum quantity, which cost me around Rs13,000. I am hopeful I will get it.”
Nidhi Dumbre, a chartered accountant, said she applied because she thought the IPO would be profitable. “I waited till the last day…. I subscribed for 45 shares, which is three lots, and feel hopeful about allotment.”
Samkit Doshi, a CA from Mumbai, thinks the net worth of LIC is far more than is quoted. “I am sure it will give me 2.5-3 times returns in the next four to five years. I subscribed… on day 1 itself for two lots. I am hopeful,” he said.
Kamal Janyani, a retail investor,has subscribed for listing gains. “I subscribed to it yesterday and mostly will get it,” he said.
LIC employees also are optimistic they will be allotted shares of their employer.
Vidya Sawant, an LIC employee, said:“Being an employee, I trust some allotment is assured. I have invested in it since I am a part of this esteemed organisation and I am sure the stock will perform well and do good.”
On the other hand, there are employees like Preeti Bodas, who is of the opinion that LIC should not be privatised.
“I did not subscribe to it. I am totally against privatisation. Now it under the government and hence everyone can get access to insurance. But once it gets privatised, only some people will have the power. I don’t think that’s right,” Bodas informed The Observer.
LIC’s public offering, India’s biggest IPO, opened for bidding on May 4. It aims to raise up to Rs 21,000 crore. According to an article on Moneycontrol, it was fully subscribed on the second day.