LIC Share Price: The listing of shares of the country’s largest insurance company Life Insurance Corporation of India (LIC IPO) has been done on BSE and NSE today. The shares of LIC that would have been allotted have suffered a loss of about Rs 82 per share as per the listing price. The company’s shares are listed on BSE at a discount of Rs 81.80 i.e. 8.62% at Rs 867.20 per share. At the same time, LIC shares were listed at a discount of Rs 77 on NSE. The company’s shares were listed at Rs 872, down 8.11% on the NSE. Its price band was fixed at Rs 949.
Market Expert’s Opinion on LIC IPO-
The share price of the company may increase in the coming days and investors can benefit. The brokerage firm is bullish on LIC shares and has given buy advice.
There can be a profit of up to 50% in a month
Anuj Gupta, Vice President of Research, IIFL Securities said, “LIC shares have opened at a discounted price due to negative secondary market sentiment. However, in the long run, the stock may generate profits. Those who have been allotted this share can hold it.” It can be bought toploss at Rs 800. In a month, LIC’s share can go up to Rs 1200-1300. That is, those investors who would have been allotted these shares can make a profit of 49.91% in a month.
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What did Angel One say?
LIC has finally got listed on the exchanges and is currently trading 5% below its issue price of Rs 949 per share. However, retail and LIC policyholders got the discount. At current prices, LIC is trading at a P/EV (embedded value) of 1.08x which is a significant discounter to other listed private life insurers such as HDFC Life, ICICI Pru Life and SBI Life. The listing of unfavorable market conditions for LIC has been muted. However, the cheap valuations as compared to other listed companies provide comfort and investors can hold on to their positions for a long period of time. Whereas retail traders with short term view can exit their positions if there is any negative movement in the next few days.
Motilal Oswal’s opinion
Hemang Jani, Head Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services Limited said, “The listing of LIC IPO has been below the price band. Given the attractive valuations and stability in the markets, we are expecting some buying interest in the stock from retail investors. Since a large amount of money has been released after the listing of LIC, a part of this money can be invested in equity markets.
Also read- LIC IPO: Flop listing of LIC shares, loss to investors on day one, LIC shares listed on the first day
Macquarie said – the share will go to 1000 rupees
Foreign brokerage firm Macquarie has started coverage of LIC. Macquarie has set a target price of Rs 1000 on LIC shares. The brokerage firm has given it a neutral rating with a target price.