LIC IPO Listing: The biggest IPO of the country so far will be listed in the stock market on Tuesday. Before listing, this stock saw a fall in the gray market. Let’s know the expert’s opinion about LIC’s stock.
LIC IPO Listing: Mega listing of the country’s largest insurance company Life Insurance Corporation (LIC IPO) is going to happen on Tuesday. The government got a good response from domestic investors for this IPO of Rs 20,557 crore. On Monday, a discount of Rs 20 was being given on this stock in the gray market. In such a situation, experts expect that the listing of this stock can disappoint the investors.
Share price fixed at Rs 949
The share price of LIC has been fixed at Rs 949 by the government. Policyholders will get shares at the rate of Rs 889 and employees at Rs 904. LIC’s IPO closed on 9 May. Its shares were allotted to the bidders on May 12. The government has offered more than 22.13 crore shares (3.5 percent) of LIC through IPO.
Country’s biggest IPO ever
LIC’s IPO was subscribed almost three times by the investors. Domestic investors actively participated in this. However, foreign investors did not show much interest in this IPO. This is the biggest IPO of the country till date. Earlier in the year 2021, Paytm’s IPO was worth Rs 18,300 crore. Prior to that, in the year 2010, the IPO of Coal India was about Rs 15,500 crore.
Long term investment advice
LIC IPO from GEPL Capital is expected to be listed at a nominal premium. Investors are being advised to invest for long term. On the other hand, Prashant Taapsee, Research Analyst and Vice President, Mehta Equities, expects the IPO to be listed at the normal rate. He said that those who could not invest can also invest in it on the day of listing.
Asif Iqbal, Research Head, Escorts Security, says that LIC’s stock will prove beneficial in the long term. His advice is whether this share should be listed with premium or not during the listing. But it would be better if investors stick with it. They say that buying it at a level below Rs 1000 will give benefits in the long term.
