At 1.45 pm, LIC’s stock was trading at Rs 876.00, 7.69 per cent below the issue price and 1.01 per cent above the listing price. Despite the poor listing, most of the market experts are positive about LIC and say that this stock can prove to be beneficial for investors in the long term. LIC’s Rs 21,000 crore IPO got nearly triple subscription.
long term investment
Religare Broking’s (VP-Research) Ajit Mishra said that despite the reasonable valuation, LIC’s shares got listed at a discount. This is because the current market conditions were not favorable for listing. He said that there is a good opportunity for such investors who want to stay in the investment for more than a year. They can buy LIC shares or add more shares to their portfolio. In the long term, this stock can prove to be a milch cow for investors.
Santosh Meena, Research Head, Swastika Investmart said that insurance business is of scale and no company can compete with LIC in this matter. Investors should not get disheartened by the negative listing and should stick with the company for a long time. He said investors who applied for listing gains can maintain a stop of Rs 800. New stocks can take advantage of the fall and take advantage in the long term.
Hem Securities Head (PMS) Mohit Nigam said that most of the large IPOs failed to generate huge profits on listing. He said existing investors should hold on to the long term while short term investors can wait for a fall in the price. He said, “We believe that awareness about personal savings and insurance will increase further. With this the sector will perform well in the long term. This will benefit LIC which is the leader in this sector.
LIC is the largest insurance company in the country with a market share of over 66 per cent in new business premiums. Tradingo’s founder Parth Nyati said that new investors can take advantage of the fall in the shares and invest in it for a long time. He said that this stock will not fall much now as its supply will be tight after listing. LIC has 2,048 branches, 113 divisional offices and 1,554 satellite offices. Its business is spread across Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, UAE, Bahrain, Qatar, Kuwait and UK.
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