LIC IPO listing highlights: Shares close at nearly 8% discount on listing day; What should investors do with this counter?

The subdued listing of LIC is in-line with expectations in context to the drop in market dynamics from the opening of the IPO to the listing date. The listing price has fallen in tandem with the fall of insurance sector valuations, maintaining the discount of about 70% to the industry’s average. Positively, the stock was brought at the dip. We believe that LIC is a decent investment opportunity in the short to medium-term considering its strong market presence, improvement in future profitability due to the changes in surplus distribution norms and strong sector growth outlook. LIC can perform well when we have a bounce in the market and positive performance in the insurance sector- Vinod Nair, Head of Research at Geojit Financial Services.
 

Amid fierce competition from rivals such as HDFC Life Insurance Company Ltd and ICICI Prudential Life Insurance Company Ltd, LIC`s market share has dropped to 63% from 66% in 2019, according to data from the insurance regulator.

Investors should stay put with LIC shares. LIC is a big organization and it aims to do better going forward. One should not invest in IPOs for the sake of listing gains only- DIPAM Secretary Tuhin Kant Pandey to LIC shareholders 

What makes LIC world's cheapest insurance stock? Zee Business Research report decodes.

The market capitalization to Indian Embedded Value (M-cap/IEV) of LIC is cheapest at around 1 and 1.05 (with respect to 5% correction from issue price) as against other private life insurance firms such as HDFC Life (4.1 M-cap/IEV), SBI Life (2.8 M-cap/IEV) and ICICI Pru Life (2.4 M-cap/IEV), highlighted Zee Business Senior Research Analyst Varun Dubey said in his report on Tuesday. In comparison, LIC’s valuations are one-fourth of HDFC Life’s valuations, the research analyst said.  

कैसा है LIC का वैल्यूएशन?

LIC Vs ग्लोबल इंश्योरेंस कंपनियां..

भारतीय इंश्योरेंस कंपनियां Vs LIC

भारतीय और ग्लोबल इंश्योरेंस कंपनियों के मुकाबले कैसा है LIC का वैल्युएशन, जानिए वरुण दुबे से..@VarunDubey85 #LICIPOWithZee #LICIPO pic.twitter.com/ASXuQr6u9u

— Zee Business (@ZeeBusiness) May 17, 2022

The valuations of the public insurer are also cheaper than its global counterparts as AXA SA has 1.1-1.2 M-cap/IEV, while AIA, Zurich Insurance, and Alliance have M-Cap/IEV between 1.1-1.9. 

LIC IPO was difficult, not impossible, says LIC MD Raj Kumar

Watch full interview here

LIC shares losses narrowed post listing as the counter was trading above Rs 900 around 10.35 am. The shares were trading at Rs 902.00 per share, up Rs 34.80 or 4.01% on the listing price and at discount of Rs 47.00 or 4.95% against issue price.  

Here is how LIC fares vis a vis global and domestic insurance companies. Know where does it stands in terms of valuations.  

Click on this link to know full analysis

The insurance behemoth LIC Ltd. has debuted at Rs. 872 i.e. 7% below its issue price. The company’s weak listing can be attributed to high volatility in the markets and negative market sentiments. The company is synonymous with insurance in India and enjoys a phenomenal brand recall. We believe India’s highly underpenetrated life insurance space is still at a nascent stage and is attractively positioned to capture the huge growth opportunity. LIC enjoys many competitive advantages like strong brand value, extremely large scale of operations, a huge network of agents, and an envious distribution network, further, the company’s issue was priced at a Price to Embedded value of 1.1x, providing a valuation comfort, so we suggest investors to stay with the company for the long term despite the negative listing. Those who applied for listing gains can maintain a stop loss of Rs. 800. New investors can take advantage of the dips to accumulate this share for the long term. We would like to add that the company's further downside will be limited due to low float post listing.- Parth Nyati, Founder, Tradingo,

Shares of LIC were listed at nearly 9% discount on the BSE and NSE. LIC Shares were listed at Rs 867 per share against issue price of Rs 949 on the BSE and Rs 872 per share on the NSE 

BSE MD CEO Ashish Chauhan says, from the first day of listing, LIC will be in A group of securities

DIPAM secretary says LIC policy holders number is about population of many countries. Eelmbed value was determined first time and now onwards EV will be available on regular intervals

LIC IPO Listing Ceremony on BSE: The ceremony of Life Insurance Corporation of India begins with auspicious Lamp Lighting on 17th May, 2022, on the BSE. 

Listing Ceremony of Life Insurance Corporation of India begins with auspicious Lamp Lighting on 17th May, 2022 at @BSEIndia@LICIndiaForever #LICIPO pic.twitter.com/KTqJiRLFq2

— BSE India (@BSEIndia) May 17, 2022

Minutes before listing, LIC shares cut losses as they were trading at over 8% discount on the BSE around 9.45 pm. They were trading at Rs 867.20 per share on the BSE.

LIC IPO Listing: Will the shares will be listed at premium or they will open below issue price. What should long-term, short-term investors do? Anil Singhvi detailed analysis.

#LICIPOWithZee

LIC की लिस्टिंग आज, इश्यू प्राइस: ₹949/शेयर

लिस्टिंग प्रीमियम पर होगी या डिस्काउंट पर?

क्या करें लॉन्ग टर्म और शॉर्ट टर्म इन्वेस्टर्स?

जानिए अनिल सिंघवी से...#LICListing #LICIPO @AnilSinghvi_ pic.twitter.com/9aenJ8yTQt

— Zee Business (@ZeeBusiness) May 17, 2022

Ahead of listing of LIC shares on the excanges, Tuhin Kanta Pandey, Secretary DIPAM speaks at the Listing Ceremony of Life Insurance Corporation of India on 17th May, 2022 

Shri Tuhin Kanta Pandey, Secretary @SecyDIPAM speaking at the Listing Ceremony of Life Insurance Corporation of India on 17th May, 2022 at @BSEIndia@LICIndiaForever #LICIPO pic.twitter.com/Q4koti9QwW

— BSE India (@BSEIndia) May 17, 2022