Life Insurance Corporation of India (LIC) shares made a warm debut on the stock exchange today, registering at a discount for the IPO price. Insurance giant shares began trading in BSE and NSE on Tuesday morning at RS 872 per share, down 8.11% of the IPO price of RS 949 per share. The stock traded lower even when the Sensex and Nifty benchmark index is in Green on Tuesday. The public problem of RS 21,000 Crore is the largest ever witnessed by Dalal Street. This problem has collected a strong response from all investor categories earlier this month in the window to subscribe to six large days, unlike the usual three -day window.

On the list, LIC has a market capitalization of Rs 5.5 Lakh Crore, placed it among the 5 top registered companies in the country based on market capitalization. IPO LIC has entered during the turbulent period for Dalal Street and with a discount assessment for what was previously proposed. The Indian government has sold only 3.5% of shares to the public through this problem, down from 5% which was previously discussed.

There are no major losses for retail, employees, and policy holders
In the gray -shabu market, before the LIC share list, shares are traded with marginal discounts. Analysts are also mixed in their expectations. However, LIC has given discounts to retail investors, employees and policy holders. Taking into account the same thing with break -even prices for retail investors and LIC employees standing in RS 904 per share, 5% lower than the price price. Meanwhile, the LIC policy holder was given a discount of RS 60 per share, which led to the break -even price of RS 889 per share. Considering the price of RS 872 per share, policy holders, retail investors, and LIC employees did not stare at large losses. However, QIB and NII did not get discounts and therefore a weak list took more investments.

Strategy for investors

Analysts have suggested investors to order list acquisitions but in terms of discount lists, analysts at Gepl Capital advise investors to be held. “We suggest that investors should hold on shares if registered with discounts and pile up more because the MCAP/EV ratio of 1.1x will be more interesting than what is in the main market and can also attract new participants after registering cheaper,” they added.

Although the LIC list is below the price of RS 949, the purchase interest can be expected. “… Given the attractive assessment and stability in the market, we expect some interest in purchases in shares both from retail investors and intuition. Because a large amount of money has been released a license post, part of this money can be transferred to the equity market, “said Hemang Jani, Head – Equity Strategy, Intermediary and Distribution, Motilal Oswal Financial Services.

With a LIP discount list, it continues with a curse on a large IPO in Dalal Street. Previously, Mega IPO, one 97 Communications (PayTM) has also witnessed the beginning from the beginning and has not recovered until now. Reliance Power, another big problem is famous for poor performance.