Life Insurance Corporation lists at Rs 865 per share against issue price of Rs 949 per share, a discount of 9%
LIC settles at Rs 872 per share in pre-open on NSE against issue price of Rs 949 per share, according to CNBC-TV18.
Dipam Secretary on LIC: LIC embedded value will be available regularly for investors to see. Response taken on our website was less than 10 milliseconds for allotment. 16500 calls were attended by call centres to facilitate allotment.
Yash Gupta- Equity Research Analyst, Angel One on LIC:
LIC shares to get listed today, retail investors who have to receive the allotment can hold list for short term to medium term. LIC will be trading at P/EV (embedded value) of 1.1x at an upper price band of Rs 949 which is at a significant discount to other listed private life insurance companies like HDFC Life, ICICI Pru Life, and SBI Life. LIC IPO initially may see some selling pressure as all the retail investors have received the allotment. Looking at the cheap valuations of LIC as compared to other listed players, it offers comfort and investors with a longer time horizon can hold or buy more.
Prashanth Tapse, Vice President (Research), Mehta Equities:
Investors’ eye are glued to Life Insurance Corporation’s (LIC) listing. However, our call of the day suggests LIC is likely to witness a sluggish opening and perhaps the stock could list anywhere between Rs 900-Rs 945.
LIC’s grey market premium (GMP) too is indicating a lackluster listing. LIC’s weak listing can dent sentiments further at Dalal Street.
Another main reason for the pessimism can be attributed to relentless selling from the FIIs camp. FIIs continue to be net sellers for the eighth straight month since October 2021. The FIIs camp have sold shares worth Rs 32,701 mark in the month of May. In yesterday’s trade too, FIIs sold shares worth Rs 1788.90 crore while DIIs bought shares worth Rs 1428.40 crore.
LIC Team (Chairperson & MDs) along with DIPAM Secretary
LIC listing today: What should investors do with the stock after it debuts on bourses?
Given stock market volatility, LIC’s debut may be muted, but experts advise investors not to panic and hold on to the stock from a medium- to long-term perspective.
Aayush Agrawal, Senior Analyst, Swastika Investmart on LIC:
We anticipate that LIC might have a flat listing today, based on the current market situation. Due to increased inflation statistics, FII outflows, currency weakness, geopolitical and rate hike-related worries, present markets are experiencing extraordinary volatility, this has caused sell-offs in equity markets all over the world. According to recent grey market patterns, the company’s unlisted shares were selling at Rs 936 per share on Saturday (May 16), a discount of Rs 13 to the IPO price band’s upper range. However, the stock’s modest float may limit the stock’s post-listing decline.
LIC is synonymous with insurance in India and enjoys a huge competitive advantage in terms of brand value and huge network of agents. However, there are concerns with the company like losing market share to private players, lower profitability & revenue growth compared to private players, lower VNB margins and short-term persistency ratios, but the valuation at Price to Embedded Value of 1.1 had discounted the above concerns. Nevertheless, investors must be aware that the business of insurance is long term in nature; therefore we recommend investors to stay with the company for the long term even if the company lists at a discount.
If LIC IPO lists below issue price, investors should accumulate more: GEPL Capital MD Vivek Gupta
Retail investors should subscribe to the LIC initial public offering (IPO), as it “brings a combination of market leader at cheaper valuations operating in a double-digit growth industry”, GEPL Capital MD Vivek Gupta has said.
Gupta was not too worried about the slide in LIC’s grey market premium. If the price slips below the issue price on the listing day, it would make LIC more attractive and investors should accumulate more, he said in an interview of Moneycontrol.
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