The largest initial public offering (IPO) of Life Insurance Corporation of India (LIC) will be listed on Tuesday, May 17, 2022. According to G Business Managing Editor Anil Singh, market analysts believe that the state-owned insurance firm Exchange could make a flat debut.
Singhvi said in his preview that LIC’s shares could show a weak or muted list amid overall weak market sentiment. However, he also said that investors are more likely to be able to make money both in the short term and in the long term.
The managing editor said that whether LIC’s shares could be listed at a premium would depend on market mood and sentiment, adding that there is a discount cushion for retailers and policyholders, which eliminates the risk of capital loss.
During his IPO preview, Singhvi advised investors to apply for LIC IPO in a medium to long term perspective.
Market analyst Ajit Mishra, who is also a VP-researcher at Religare Broking Ltd, said, “The current market situation could turn into a flat list. We uphold the recommendation that investors should subscribe to LIC IPOs with a long-term outlook; Not to list profits. ”
Ayush Agrawal, a senior analyst at Swastika Investmart Limited, and another market analyst also speculated that LIC could be listed flat on Tuesday based on the current market situation.
He added, “Current markets are experiencing significant volatility due to rising inflation figures, FII outflows, currency weakness, geopolitical and rate-raising concerns, which has led to sell-offs in equity markets around the world.”
A senior analyst at Swastika Investmart said investors must be aware that the insurance business is of a long-term nature and investors are recommended to stay with the company even if the company is listed at a discount.
LIC’s IPO worth Rs 21,000 crore was subscribed almost 3 times between May 4 and 9, 2022. As against the proposed 16,20,78,067 shares, 47,83,67,010 shares were bid for by the State Insurers.