LIC shares can be listed at a discount today. The company’s shares will be listed on both BSE and NSE. This issue was listed almost three times. The government has allotted shares to the investors at a price of Rs 949.
LIC had given a discount of Rs 45 per share to retail investors. Policyholders were given a discount of Rs 60 per share. After the discount, the company issued shares to policyholders at Rs 889 per share, while to retail investors at Rs 904 per share.
LIC shares are trading at a discount in the gray market. On 16 May, this stock was trading at a discount of Rs 16 per share in the gray market. LIC’s stock in the gray market has been affected by the recent weakness in the stock market.
Selling of foreign funds, weakness in rupee and Ukraine Crisis have added to the pressure in the stock market.
Experts say that despite the bad situation in the market, LIC’s IPO was successful. Policyholders, employees and retail investors showed good interest in the issue. The reason for this is the strong brand of LIC. It is recognized in every household.
Many people take the meaning of insurance with LIC. It has a wide sales network across the country. It has more than 2000 branches across the country.
Experts say that if LIC shares are listed at a discount, then there is no need for investors to despair. Instead of selling this stock immediately at a loss, they should keep it for medium to long term. Investors who could not bid in the IPO can buy the shares at a cheaper rate.
On Monday, after a long time, the market looked bright. Major indices of the market closed in the green. If the market sentiment remains positive even on Tuesday, then it may have an impact on the listing of LIC shares. However, despite listing below the issue price, the margin of loss for policyholders and retail investors is slim. This is because they got the discount.