Listing expected with modest premium.
Market experts have different opinions regarding LIC IPO listing. Some experts believe that the listing will be at a fall in comparison to the issue price. However, every fall is described as an opportunity and is an investment advisory at least for the medium term.
today LIC IPO ,LIC IPO) is about to have a mega listing. On Monday, this stock was available at a discount of Rs 20 in the gray market. In such a situation, the big question arises that if the listing does not live up to the expectations of the investors, then what should they do. Market experts have different opinions regarding this listing. Despite the attractive valuation, market veterans have different opinions about this IPO. Today, after six days, the market has closed sharply. So the sentiment seems to be getting stronger.
The listing of this IPO will happen at 10 am on Tuesday. GEPL Capital ,GEPL CapitalHarshad Gadekar of ) says that the government has fixed the issue price for this IPO at Rs 949. At this valuation, the market cap of LIC is more than Rs 6 lakh crore. If this listing happens at the issue price, then it will be included in the top-10 companies along with the listing. In the gray market, this stock is available on May 16 at a discount of Rs 15-20. In such a situation, investors who had expected listing gains may have to be disappointed.
Estimated listing with a nominal premium
GEPL Capital has estimated listing of this IPO at a nominal premium. Despite this volatility, this IPO has got three times subscription. The subscription to the retail segment has been further strengthened. In such a situation, retail investors will be very active tomorrow. If it is listed with a discount, then IPO investors can buy on the downside. On listing at a discount, retail investors will create buying pressure and the stock will rise. It is already available at a discount of 5 per cent to retail investors and 6 per cent to policy holders.
First target of Rs 1250
Investors have been advised to invest for long term. It is advisable to avoid listing or trading gains. It is at a great discount as compared to its competitors i.e. HDFC Life, SBI Life, ICICI Prudential. The first target will be Rs 1250.
Invest for at least medium term
Prashant Taapsee, Research Analyst and Vice President, Mehta Equities said that there is still uncertainty in the market. LIC’s IPO is expected to be normal. Those who have bid in the IPO should not panic and keep investing at least for the medium term. Those who could not invest in the IPO, see any downside on Tuesday as an opportunity and include this stock in the portfolio.
Buying below 1000 rupees is a profitable deal
Asif Iqbal, Head of Research, Escorts Security, estimates that LIC’s listing may remain around the previous levels, given the current indications. However, with the improvement in the signals for the stock market, LIC will prove to be a profitable deal for the investors in the long term. He has advised that if the stock remains close to the issue price on the first day, whether it is listed with a premium or with a discount, then the investors who got the stock through the IPO should stay in it, while those who want to buy the stock at a discount. When listed, you can buy in stock. According to him, buying below 1000 level would be a profitable deal, although he clarified that this investment advice is only for long term investors.
Book profit only after more than 10% gain
According to Vivek Mittal, Head of Research, VM Financial, the sentiments regarding the listing have improved and it is expected that the stock may list with a limited premium. He has advised that investors who want listing gains can withdraw some part of the invested amount along with profit if they get more than 10 percent growth and retain the rest of the investment. At the same time, it is advisable to remain in stock at a discount. At the same time, he advised that if an investor wants to invest in it after listing with limited discount, then he should take a long-term view. Strong returns are not expected in the stock in the short to medium term.