LIC shares got listed on BSE and NSE on Tuesday. The stock was listed on both the stock exchanges at a discount to the issue price. This caused a lot of disappointment to the investors, especially the retail investors.
Policyholders were also disappointed. Despite the discount of Rs.60, he did not get a chance to make a profit. Same was the case with retail investors.
The special thing is that after the last several weeks, this week the stock market has returned brightly. Tuesday is the second day in a row, when the stock market opened in the green.
Listing of LIC shares did not benefit from this. LIC shares were trading at a discount in the gray market for the past few days. Due to this, its weak listing was expected.
Experts say that investors should not be disheartened by the weak listing of LIC. They should avoid selling this stock at a loss. He says that the fundamental position of LIC is strong. It is the largest insurance company in the country.
Prashant Taapsee, Vice President, Mehta Equities said,”We would advise people who invest in LIC issue not to get disheartened. They should retain this stock. This stock will give good returns in the medium to long term.”
He even said that investors who were not allotted this share can buy it at a cheaper price in the stock market. He said that investors who have been allotted one lot in the IPO, they can increase their investment if they want.
Ayush Agarwal, Senior Analyst, Swastika Investmart said that investors should understand that LIC’s business is long term. Hence, we would advise investors to maintain their investment in this stock. They should not book losses by selling this stock at a lower price in desperation.
LIC’s share price was trading at Rs 899.50 on NSE at 10:38 am. At this price, policyholders are making a profit of around Rs 10, while retail investors are incurring a loss of around Rs 5. Note that policyholders got this share at a discount of Rs 60 and retail investors Rs 45.