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Can LIC stock prove to be a decent long-term bet after a shaky start?


LIC had a weaker than projected launch on the public exchanges, with the shares trading at a discount, impacting all types of IPO investors. On the BSE, LIC shares were listed for Rs 867.20, a 9% reduction. The LIC offering price was unprofitable for all types of investors, including policyholders, who received shares at Rs 889 each after a Rs 60 discount, whilst employees and retailers received shares at Rs 904.



However, the stock quickly recovered to achieve Rs 920 on the BSE before reducing some of its gains and trading below Rs 900 in the early hours. Despite the dismal listing, the majority of market analysts are optimistic about LIC and recommend that investors hold it for the long run. Religare NSE 10.18 percent, Ajit Mishra, VP-Research LIC shares were launched at a substantial discount despite good valuations, according to Broking, since the current market conditions were not favourable for the insurance giant.



"This is a great chance for investors who wish to enter the market for the first time or buy more shares if they have a longer-term investing plan," he added. "LIC is likely to turn out to be a long-term wealth producer." Insurance is a scale business, and no corporation compares to the size of LIC. Santosh Meena, Swastika Investmart's Head of Research, advised investors to ignore the unfavourable listing and stick with the company for the long run. "Those who applied for listing profits should keep a Rs 800 stop loss," he added. "New investors can buy this stock on the cheap and hold it for the long term." For the present year, he thinks LIC is a good dividend bet. According to Mohit Nigam, Head of PMS at Hem Securities, the majority of large IPOs have failed to deliver high listing returns. Existing investors should consider LIC as a long-term investment, while short-term investors should wait for a lower price.



"We expect that personal savings and insurance awareness will rise, allowing the sector to succeed in the long run and, as the market leader in this area, will benefit LIC indirectly," he added. With a market share of more than 66 percent in new business premiums, LIC is India's largest insurance provider. The company offers both participating and non-participating insurance products.

New investors might take advantage of the dips to accumulate this stock for the long run, according to Parth Nyati, Founder of Tradingo. "We'd like to point out that due to the minimal float post-listing, the company's additional downside will be constrained." LIC has 2,048 branches, 113 divisional offices, and 1,554 satellite offices across the country. Fiji, Mauritius, Bangladesh, Nepal, Singapore, Sri Lanka, the United Arab Emirates, Bahrain, Qatar, Kuwait, and the United Kingdom are among the countries where it operates.

Also Read : LIC makes its debut for Rs 865, a 9% decrease to the issue price

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