LIC made a less than expected debut on bourses as the stock listed at a discount, hurting all categories of IPO investors. LIC shares listed at Rs 867.20, a discount of 9 percent, on BSE.
The listing price of LIC was non-profitable for all categories of investors, including policyholders who were given shares at Rs 889 apiece after a discount of Rs 60 per share, whereas employees and retailers were allotted shares at Rs 904.
However, the counter made a quick recovery to hit Rs 920 on BSE, before paring some gains to trade below Rs 900 levels during early hours.
However, despite the poor listing, a majority of market analysts are positive on LIC and suggest investors to hold them for the long term.
Ajit Mishra, VP- Research, Religare Broking, said despite reasonable valuations, LIC shares listed at a steep discount as the existing market conditions were not conducive for the insurance major.
“This is a solid opportunity for investors who want to make a fresh entry in the counter or add more shares if they have an investment horizon of more than one year,” he added. “LIC is likely to turn out to be a wealth creator in the long term.”
