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Delhi News

Mcap of seven of top-10 valued firms tumbles over Rs 1.54 trilion

Tata Consultancy Services, TCS



Seven of the top-10 valued firms suffered a combined erosion of Rs 1,54,477.38 crore in market valuation last week, with IT majors Tata Consultancy Services and Infosys emerging as the biggest laggards.


Last week, the BSE benchmark index tanked 812.28 points or 1.36 per cent.


Reliance Industries Limited, ICICI Bank and State Bank of India were the only gainers in the top-10 pack.


The market valuation of Tata Consultancy Services (TCS) plunged Rs 59,862.08 crore to Rs 11,78,818.29 crore.


The valuation of Infosys tanked Rs 31,789.31 crore to Rs 6,40,351.57 crore.


HDFC Bank’s valuation declined by Rs 16,090.67 crore to Rs 8,13,952.05 crore and that of Hindustan Unilever fell by Rs 14,814.18 crore to Rs 6,04,079.91 crore.


The market capitalisation (mcap) of Bajaj Finance declined by Rs 14,430.4 crore to Rs 4,27,605.59 crore and HDFC by Rs 13,031.62 crore to Rs 4,34,644.36 crore.


The valuation of Life Insurance Corporation (LIC) dipped Rs 4,459.12 crore to Rs 4,29,309.22 crore.


On the other hand, Reliance Industries added Rs 3,500.56 crore taking its valuation to Rs 17,71,645.33 crore.


The mcap of State Bank of India jumped Rs 3,034.37 crore to Rs 4,67,471.16 crore and that of ICICI Bank climbed Rs 523.02 crore to Rs 6,06,330.11 crore.


Reliance Industries continued to rule the chart as the most valued firm, followed by TCS, HDFC Bank, Infosys, ICICI Bank, Hindustan Unilever, State Bank of India, HDFC, LIC and Bajaj Finance.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Delhi News

LIC ropes in Milliman Advisors to derive September embedded value



The Life Insurance Corporation of India (LIC) has roped in Milliman Advisors to derive its embedded value (EV) as on September 2022. Milliman had ascertained the embedded value for the insurer before its initial public offering (IPO).


Embedded value is a key metric that indicates an insurance company’s performance, and is the sum of adjusted net worth and value of in-force business or estimated future profits. In July, LIC had announced it would disclose its embedded value twice a year against the industry practice of releasing it once a year.


As the government and LIC had decided to declare the insurer’s Milliman Advisors in March 2022 in its effort to improve transparency in reporting by the organisation, Milliman was also asked to compute the key metric as of March 2022. Now, the reporting actuary would ascertain the EV of India’s largest insurer for September 2022 as well, an official told Business Standard.


Milliman Advisors was appointed as the reporting actuary for LIC in December 2020 to compute the embedded value prior to its listing as the exercise was never undertaken by the insurer after it segragated its Life Fund into participating policyholders fund and non-participating policyholders fund. Participating policyholders share profits of the participating fund of the insurer, while non-participating policies’ profits and dividends are not shared with policyholders.


LIC had disclosed its embedded value for the first time in its draft red herring prospectus (DRHP) that witnessed an increase from Rs 95,605 crore in March 2021 to Rs 5.39 trillion in September 2021 after segregation of its fund into participating and non-participating funds. This increased further to Rs 5.41 trillion as of March 2022 backed by growth in value of new business (VNB).


In its computation for March 2022, Milliman Advisors had said a 10 per cent drop in equities would lower the embedded value of LIC by 6.5 per cent. Besides drop in equities, the embedded value is sensitive to the taxation rate. It could drop 24.3 per cent if the taxation rate is assumed to be increased to 34.9 per cent, the reporting actuary had noted.


The LIC management, during its analyst call post the declaration of March embedded value, had said its aim was to create higher value of VNB in the interest of the shareholders, “but not coming in the cost of the policyholder, because the entire business has to grow, only one element cannot be the criteria.”



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IDBI Bank strategic sale: 7 firms in race for transaction advisor



As many as seven firms, including JM Financial, Ernst and Young and Deloitte, have bid for managing the strategic sale of IDBI Bank.


These firms would make a virtual presentation before the Department of Investment and Public Asset Management, which is handling the sale process, on August 10, according to a notice by DIPAM.





The firms that have bid for acting as transaction advisor are Deloitte Touche Tohmatsu India LLP, Ernst and Young LLP, ICICI Securities, JM Financial Ltd, KPMG, RBSA Capital Advisors LLP and SBI Capital Markets.


DIPAM would appoint one transaction advisor for the strategic sale of IDBI Bank, in which the central government and LIC together own more than 94 per cent.


LIC, currently having management control, has a 49.24 per cent stake, while the government holds 45.48 per cent in the bank. Non-promoter shareholding stands at 5.29 per cent.


The exact quantum of stake dilution would be decided later.


The government in June invited bids from reputed professional consulting firms / investment bankers / merchant bankers / financial institutions / banks, for facilitating/assisting DIPAM in the process of strategic disinvestment of IDBI Bank Ltd. along with transfer of management control, till completion of the transaction. The last date for bid submission was July 13, which was later extended till July 22.


The Transaction Advisor would be required to advise and assist the government on modalities of disinvestment and the timing; recommend the need for other intermediaries required for the process of sale/disinvestment and also help in identification and selection of the same with proper Terms of Reference; preparation of all documents like Preliminary Information Memorandum (PIM), organise roadshows, suggest measures to fetch optimum value.


The advisor would also be supporting IDBI Bank in setting up of the e-data room and assisting in the smooth conduct of the due diligence process, will help position the divestment of GoI equity in IDBI Bank to organize roadshows and to generate interest among the prospective buyers.


The Cabinet in May had approved the strategic sale of the entire stake of the government and Life Insurance Corporation (LIC) in IDBI Bank Ltd.


In response to queries received from potential transaction advisors in IDBI Bank, the DIPAM had last month clarified that since LIC’s stake would be sold along with that of the government’s, a single transaction advisor would manage the entire share sale process.


The quantum of stake dilution would be declared before RFP (Request for Proposal) stage of the transaction.


Finance Minister Nirmala Sitharaman in her Budget for 2021-22 had said the process of privatisation of IDBI Bank would be completed in the current fiscal. The government aims to mop up Rs 1.75 lakh crore in the current fiscal from minority stake sale and privatisation.


Of the Rs 1.75 lakh crore, Rs 1 lakh crore is to come from selling government stake in public sector banks and financial institutions while Rs 75,000 crore would come as CPSE disinvestment receipts.


So far in the current fiscal the government has mobilised Rs 7,648 crore as disinvestment receipts.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





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For more information call us at 9891563359.
We are a group of best insurance advisors in Delhi. We are experts in LIC and have received number of awards.
If you are near Delhi or Rohini or Pitampura Contact Us Here