LIC Shares: LIC Shares Are Looking At The Ground, Investors’ Hopes Are Evaporating

If the Indian stock market reaches an all-time high, the shares of the largest insurance company LIC are looking at the floor. Investors are expecting that the LIC shares will increase after the listing itself, but that is not the case. As the months passed, LIC shares continued to fall. The IPO of LIC shares created a big stir in the market this financial year. Allotment of LIC shares is conditional. Roadshows were organized to attract investors. Retail investors were encouraged to invest in LIC’s IPO, but LIC’s shares were disappointing at the start of the IPO.

According to statistics, retail investors’ confidence in LIC shares has been decreasing for some time now. 2.65 lakh investors got rid of LIC shares in the second quarter. Given the fall in LIC shares, it seems reasonable for retail investors to get rid of the shares. The issue price of shares in LIC IPO to retail investors is Rs. 904, policyholders Rs. 889, while for regular investors Rs. It started with 949. On May 17, Rs. LIC shares were listed for 872. LIC investors are seeing losses from day one. On Friday in BSE Rs. 585 while LIC shares traded at Rs. 588 traded at an all-time low.

Some investors see this all-time low as an opportunity to buy LIC shares at lower rates. According to the data, retail investors held 11.86 crore shares at the end of the June quarter, while this figure rose to 12.21 crore shares by September. LIC investors bought 35 lakh shares in 3 months. Among these companies, Foreign Portfolio Investments showed interest in LIC shares and bought 33 lakh shares. Holdings in mutual funds declined by 0.1 percent as sentiment eased. Taking a look at the future of LIC shares, brokerage firms suggest buying despite the share’s poor performance. While foreign brokerage firm Citi has given a buying target of Rs.1000, Moti Lal Oswal has given Rs. 830, and MK Global Company Rs. 800 target price.

The fall in shares has affected the business of LIC. LIC saw the lowest profit in history. LIC’s margin declined to 13.6 percent by June from 15 percent in the March quarter. If we look at other companies, the margin of SBI Life and ICICI Prudential is 30 percent, while the margin of HDFC Life is 27 percent. Deepam Secretary Tuheen Kant Pandey said that LIC should adopt new business methods to sustain in the market. He said that the management of LIC should think differently that a new story has started with the listing of LIC shares in the market and LIC should move forward with new strategies with a 20-year business plan.