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Mohit Nigam, Head – PMS, Hem Securities:
As observed, the majority of big IPOs have not given a strong listing debut gains. Considering previous trends, LIC has continued to take the same path with listing at a discount of 8.8% from Rs 949 to 872 at NSE on its listing day and is currently trading at Rs 900-905 levels.
We believe that personal savings and awareness regarding insurance will increase enabling the sector to outperform in the long run and will indirectly benefit LIC as it is the market leader in this sector.
We feel long term investors should continue to hold the scrip while short-term investors can wait to enter at a lower price.
Yash Gupta- Equity Research Analyst, Angel One:
LIC has finally been listed on the exchanges and is currently trading ~5% below its issue price of Rs 949 per share. However, Retail and LIC policyholders have received a discount of Rs 45 and Rs 60 respectively to the issue price and are marginally in the money.
At current prices, LIC is trading at a P/EV (embedded value) of ~1.08x which is at a significant discount to other listed private life insurance companies like HDFC Life, ICICI Pru Life, and SBI Life.
As expected given the adverse market conditions listing has been muted for LIC. However, cheap valuations as compared to other listed players offer comfort, and investors with a longer time horizon can hold on to their positions while retail traders with a short-term view can exit their positions in case there is any upside movement over the next few days.
Vedanta was quoting at Rs 306.45, up Rs 19.30, or 6.72 percent and trading with volumes of 603,757 shares, compared to its five day average of shares, a decrease of percent.The share touched a 52-week high of Rs 440.75 and a 52-week low of Rs 242.60 on 11 April, 2022 and 18 June, 2021, respectively. Currently, it is trading 30.47 percent below its 52-week high and 26.32 percent above its 52-week low.
The metal index jumped 4 percent led by Hindalco, Vedanta, JSW Steel, NALCO and Tata Steel
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For long-term investors, India is an attractive investment destination and short-run corrections are opportunities to increase equity investments.
Hemang Jani, Head – Equity Strategy, Broking and Distribution, Motilal Oswal Financial Services:
Though LIC listing has been below the issue price of Rs 949, given the attractive valuations and stability in the markets, we expect some buying interest in the stock both from retail and intuitional investors.
Since large amount of money has been released post listing of LIC, part of this money could get diverted into equity markets.
Santosh Meena, Head of Research, Swastika Investmart:
India’s largest insurance company has debuted at Rs 872 i.e. 7% below its issue price. The current market is not conducive for primary issues and LIC being the largest IPO has witnessed a negative listing, the current market volatility has weighed down on the insurance titan’s listing.
However, the prospects for the insurance industry in India are good due to the under penetration of insurance and a long runway of growth; hence LIC being the largest player will be the beneficiary in the long term.
Insurance is a business of scale, and there is no company to match the scale of LIC, so we suggest investors not be bothered about the negative listing and stay with the company for the long term.
Those who applied for listing gains can maintain a stop loss of Rs. 800. New investors can take advantage of the dips to accumulate this share for the long term. Another point to note has that, LIC didn’t pay any dividends in the last financial year, so there are high chances that the company might declare a good dividend this year, thus making it a good dividend