Business Standard

Sensex soars 1,345pts, Nifty tops 16,250; LIC ends 8% down at Rs 875 on BSE

CLOSING BELL: Shares of Life Insurance Corporation of India (LIC) listed at Rs 867.20 on the BSE, a 8.6 per cent discount when compared with its issue price of Rs 949 per share

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Photo: Bloomberg

10:57 AM

Metal shares shine on demand revival hopes; Hindalco, Vedanta soar 7%

At 10:36 am; Nifty Metal index was the top gainer among sectoral indices, up 4.4 per cent, as compared to 1.3 per cent rise in the Nifty50 index. Read here

Tata Steel, manufacturing, metals, jobs, workers, labour
10:46 AM

Rupee hits fresh all time low as investors rush for safe haven assets

The Reserve Bank of India has beefed up its intervention in the currency market which slowed the pace of the fall. Read more

rupee
10:41 AM

Expert View on LIC: Further downside to be limited due to low float post listing

The company’s weak listing can be attributed to high volatility in the markets and negative market sentiments.

The company is synonymous with insurance in India and enjoys a phenomenal brand recall.

We believe India’s highly underpenetrated life insurance space is still at a nascent stage and is attractively positioned to capture the huge growth opportunity.

LIC enjoys many competitive advantages like strong brand value, extremely large scale of operations, a huge network of agents, and an envious distribution network, further, the company’s issue was priced at a Price to Embedded value of 1.1x, providing a valuation comfort,

So, we suggest investors to stay with the company for the long term despite the negative listing.

We would like to add that the company's further downside will be limited due to low float post listing.

Views by Parth Nyati, Founder, Tradingo
10:37 AM

Expert View on LIC debut: Investors should stay invested from long-term perspective

India’s largest insurance company has debuted at Rs. 872 i.e. 8% 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 is 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 play.

Views by Santosh Meena, Head of Research, Swastika Investmart Ltd.
10:35 AM

Snippet from LIC history: A minister, a son-in-law & a financial adventurer

The scandal involved the finance ministry and a canny industrialist, and details were eventually brought into the limelight by Jawaharlal Nehru's crusading son-in-law. READ HERE

Some companies are trimming their IPO size. Others which have got Sebi clearance are now saying that nobody wants to go public amid such strong headwinds. Yet others say they will look at how the PharmEasy share issue will do

10:27 AM

LIC lists at 8.6% discount, stock recovers partially post weak debut

LIC has now become the fifth most valuable listed Indian company with a market capitalisation of Rs 5.72 trillion on the BSE as of 10:08 am, the exchange data shows. READ HERE

LIC has the largest network of 1.34 million individual agents as on March 31, 2021

10:24 AM

LIC listing: After discounted debut, Macquarie sets Rs 1,000 as target

LIC listing: The debut was below expectations, and also lower than the discounted value at which shares were offered to policyholders (Rs 60 per share) and retail investors (Rs 45 per share). READ HERE

Life Insurance Corporation

10:22 AM

LIC recovers mildly after muted listing; down over 4%

10:16 AM

LIC makes a tepid debut; lists at 8% discount on NSE & BSE

Shares of Life Insurance Corporation of India (LIC) made a muted debut at bourses as the insurance behemoth listed at Rs 867.2 on the BSE, a discount of 8.62 per cent over its issue price of Rs 949. On the other hand, the counter listed at 8.11 per cent discount over its issue price on the NSE at Rs 872. 

LIC, Life Insurance Corporation

10:02 AM

New debut: LIC lists at over 8% discount to allotment price

9:58 AM

Market view: Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

The major event of the day is the LIC listing. The performance of LIC stock post listing will have a near term sentiment impact on markets. Markets will remain highly volatile in the short-term. High inflation and Fed tightening will continue to be short-term challenges for the market. In the medium-term, there is a possibility of inflation peaking off and if that happens the central banks may not tighten as much as the market fears now. In such a scenario markets can bounce back sharply. But this is some time away. In the near-term the market is likely to remain weak amidst high volatility. Long-term investors can buy high quality stocks across sectors, particularly in financials, IT and pockets of autos.
9:51 AM

LIC set for lacklustre market debut despite oversubscription: Analysts

Volatility in global markets and selling pressure in the domestic stock market are likely to cast a shadow on LIC's listing. READ HERE

Most large global investors may give LIC's initial public offering a miss

9:47 AM

Insurance stocks trade mixed ahead of LIC listing

9:43 AM

IRB Infra gains over 2% as toll collections widen in April

9:38 AM

Raymond surges over 3% on strong Q4 results

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First Published: May 17 2022 | 8:21 AM IST