LIC IPO discount listing government say investor hold the share long term
By Lokmat English Desk | Published: May 18, 2022 05:50 PM2022-05-18T17:50:57+5:302022-05-18T17:50:57+5:30
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LIC's IPO comes as a big shock to investors. A large number of policyholders would also have invested in LIC's IPO. But everyone has suffered. What is special is that this was the first time that a large number of people tried their luck in an IPO.
Investors were worried after the loss during the IPO listing. The question is what exactly happened and how the money got sunk in such a big IPO. Also, investors are now wondering what to do to recover from the losses.
Citizens of the country have great faith in LIC. Despite this, everyone is under the illusion that the IPO has eaten away at the group. Efforts were also made by the government to benefit investors. But so far nothing like that has happened.
The government has blamed the stock market for the weak listing of LIC shares. The government says investors have been hurt by market fluctuations.
According to Tuhin Kant Pandey, secretary of the Department of Investment and Public Assets Management, the weak listing of stocks is the main reason for the uncertainty in the stock market.
Policyholders, retail investors and employees have received shares at a discount. As a result, they have suffered less damage than others. The company had allotted shares to investors at a price of Rs 949 per share.
Possibility of acceleration in the coming period
At the time of listing, LIC chairman MR Kumar had said that LIC's shares would get a good response. The market is currently in decline. But going forward, LIC's stock will see a rally. At the moment, there is no reason for the stock to remain weak.
Shares of LIC plunged nearly 9 percent to 867 after its IPO was listed on the open market yesterday. According to experts, if the market continues to improve, LIC's stock will also rise.
On the other hand, global brokerage firm Macquarie has set a target price of Rs 1,000 for LIC shares with a neutral rating. Therefore, LIC's stock is expected to rise by around 12 per cent in the near future.