The European debt crisis (often also referred to as the eurozone crisis or the 

European
sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European
Union since the end of 2009

European Union European Union came into existence with an endeavor to stop the war
between the bordering countries and to maintain the peace and harmony throughout the
Europe. European Union is constructed on the principles of stability and to promote the
prosperity among European nations with presence of security

The European Sovereign Debt Crisis refers to the financial crisis that occurred
in several European countries due to high government debt and institutional
failures

The crisis began in 2009 when Greece’s sovereign debt reportedly reached
113% of GDP – almost twice the limit of 60% set by the Eurozone. The
following widespread collapse was a result of excessive deficit spending by
several European countries.

When a company is going for a process of getting listed on the stock exchange and publicly
traded, IPO is the first public offering, it is the main source of the company in acquiring money
from the general public to finance its projects and the company allots shares to the investors in
return. FPO is an abbreviation of a Follow-On Public Offer.

Follow-On Public Offering refers to a process in which publicly owned companies can make
further issue of shares to the public through an offer document. IPO is the first public issue of
the company’s shares. On the other hand, FPO is the second or third public issue of the shares
of the company.

Subscribed share capital is that part of issued share capital for which a company has
positively received subscription from the investors. In simple words, when a company
issues shares to raise fund, it may or may not find the investors for all of its shares.

[10:18 AM, 2/18/2022] Ritika Agarwal NDIM: Life Insurance Corporation of India IPO – Schedule
(TENTATIVE)
07th March – Announcement of Price Band

09th March – Anchor Investors Allotment

10th March – Offer Opens

14th March – Offer Closes

17th March – Finalisation of Basis of Allotment

21st March – Unblocking of ASBA Accounts

22nd March – Credit of Equity Shares to Depository Accounts

23rd March – Commencement of Trading

Life Insurance Corporation of India IPO – Issue Information (TENTATIVE)

Issue Opens on: 10 March 2022

Issue Closes on: 14 March 2022

Issue Type: Book Built Issue IPO

Issue Size: 31,62,49,885 Shares

Face Value: Rs.10/- per Share

Issue Price: Rs.2,000 – Rs.2,100 Share

Discount: 10% (for Employees & Policy Holders)

Market Lot: 7 Shares

Listing At: NSE, BSE

Equity Shares outstanding prior to the Issue = 6,32,49,97,701 Shares

Fresh Issue of NIL Shares @2,100/- = Rs. NIL Crs

Offer for Sale of 31,62,49,885 Shares @2,100/- = Rs.*65.416.29Crs

(*considering 10% discount for Employees & Policyholders)

Equity Shares outstanding after the Issue = 6,32,49,97,701 Shares

Category-wise Break up:

Anchor – 8,06,43,751 Shares = 16,935.18Crs (@2,100/-)

QIB – 5,37,62,480 Shares = 11,290.12Crs (@2,100/-)

NII – 4,03,21,860 Shares = 8,467.59Crs (@2,100/-)

RII – 9,40,84,341 Shares = 19,757.71Crs (Lot size: 7 = 1,34,40,620 Forms)

Employees – 1,58,12,494 Shares = 2,988.56Crs (10% discount = @1,890/-)

PolicyHolders – 3,16,24,989 Shares = 5,977.12Crs (10% discount = @1,890/-)

Total Issue – 31,62,49,885 Shares = 65,416.29Crs.

Subscription required for 1X

RII = 1,34,40,620 Forms

NII = 8,467.59 Crs

Life Insurance Corporation of India IPO – Financial Information (Basis of Valuation)

The information is collated from the following documents:

1) DRHP = Draft Red Herring Prospectus Dated February 13, 2022 (652 pages)

EPS for FY18-19 >>> Rs 4.15 (Page #97 of DRHP)

EPS for FY19-20 >>> Rs.4.29 (Page #97 of DRHP)

EPS for FY20-21 >>> Rs.4.70 (Page #97 of DRHP)

EPS for H121-22 >>> Rs.2.38 (Page #97 of DRHP)

RoNW for FY18-19 >>> 322.25% (Page #98 of DRHP)

RoNW for FY19-20 >>> 317.14% (Page #98 of DRHP)

RoNW for FY20-21 >>> 45.65% (Page #98 of DRHP)

RoNW for H121-22 >>> 18.76% (Page #98 of DRHP)

NAV as on September 30, 2021 was Rs.12.68 (Page #98 of DRHP)

Listed Industry Peer Group (Page #99 of DRHP):

SBI Life Insurance Company,

HDFC Life Insurance Company,

ICICI Prudential Life Insurance Company

[10:44 AM, 2/18/2022] Ritika Agarwal NDIM: Red herring, book building process, QIB, diff between FDI
and FII, Latest percentage any IPO can do with book building process- Read them for FMS class