Should new investors purchase LIC shares on a decline following a lacklustre listing?



The Life Insurance Corporation of India (LIC) share had a dismal stock market launch, disappointing thousands of investors. On Monday, the LIC share was listed at Rs 867.20, a decrease of 8.5% from its issue price of Rs 949. LIC's stock price decreased 8.04 percent to Rs 872.70 at the closing of trading on the BSE. The LIC stock experienced a high and low on the first trading day of Rs. 920 and Rs. 860.10, respectively. Even for the staff and policyholders, the LIC listing price was unprofitable. The insurance goliath had given qualified policyholders a discount of Rs 60 and staff and retail investors a reimbursement of Rs 45.

LIC Share: Should you Buy LIC Stock Now?

Analysts noted the lukewarm response to LIC's listing on the domestic and international markets. The main offenders are rising inflation, central bank rate increases, supply-chain disruptions, and unending war between China and Russia. Market watchers, though, are optimistic about LIC in the long run.

This may be the ideal opportunity to purchase stock in the largest insurance company in the nation. The price decline has provided new investors with an opportunity to amass their shares for the long term. According to Ajit Mishra, VP-research at Religare Broking, "This is a good chance for investors who wish to make a new entry in the counter or buy extra shares if they have an investment horizon of more than one year."


According to Yash Gupta, equities research analyst at Angel One Ltd., LIC is trading at a P/EV (embedded value) of 1.08x, which is at a significant discount to other listed private life insurance companies including HDFC Life, ICICI Prudential Life, and SBI Life Insurance.


"The listing price has decreased in lockstep with the valuation decline in the insurance sector, keeping the discount of almost 70% to the average price in the sector. Vinod Nair, head of research at Geojit Financial Services, said that it was advantageous that the stock was purchased at a discount. When the market recovers and the insurance industry performs well, LIC may perform well, he noted.

LIC Stock: Solid for Long-term Bet?


"We think LIC will continue to be a wise investment in the long run since it plays the underserved life insurance market's development story. According to B Gopkumar, managing director and chief executive officer of Axis Securities, "LIC will be an attractive pick from a long-term perspective due to its sustained market leadership position, robust pan-India distribution network, and shifting focus towards profitable products, which will support margins and improve persistency ratios.


"LIC has a tremendous brand recall and is known for insurance in India. We think the severely underserved life insurance market in India is still in its infancy and is well-positioned to take advantage of the enormous growth potential. The insurance has several competitive advantages, including a strong brand value, very significant operational scale, a sizable agent network, and an impressive distribution network "Parth Nyati, the company's creator, remarked.


"New investors can purchase this share during a slump and hold it for the long term, "The company's future decline will be limited due to the minimal float post-listing," she continued.

LIC Share Listing: What Should Existing Investors Do?


After LIC had been listed at a significant discount, market professionals advised the current investors not to worry. "While LIC debuted at a modest discount to its issue price, investors should retain the company from a medium to long-term view and not aim to exit at current levels, "Additional Axis Securities MD "Despite the bad listing, we advise investors to stick with the company for the long run. Those who applied for listing gains may keep a stop loss of Rs "established Trading recommended


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