LIC IPO listing on Tuesday: Public insurer may see flat listing amid weak market sentiment – know what analysts say

India’s biggest Initial Public Offer (IPO) of Life Insurance Corporation of India (LIC) is scheduled to list on Tuesday, May 17, 2022. In line with Zee Business Managing Editor Anil Singhvi’s view, the market analysts believe that the state-owned insurance firm may make a flat debut on exchanges. 

Singhvi in his preview had said that the LIC’s shares may show a tepid or muted listing amid the overall weak market sentiments. However, he also said that it is highly likely that investors would be able to make money in both the short-term and long-term.  

The managing editor had said that at what premium the shares of LIC may list will depend on the market’s mood and sentiment, he further added that there is a discount cushion for retail and policyholders, which erases the capital loss risk.    

Singhvi during his IPO preview had advised investors to apply for LIC IPO with a medium to long-term term perspective.  

The market analyst Ajit Mishra, who is also a VP-Research at Religare Broking Ltd said, “The current market scenario might result in a flat listing. We maintain the recommendation that investors should subscribe to LIC IPO with the long-term view; not for listing gains.” 

Another market analyst Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd also anticipated that LIC might have a flat listing on Tuesday, based on the current market situation.  

He added, “Due to increased inflation statistics, FII outflows, currency weakness, geopolitical and rate hike-related worries, present markets are experiencing extraordinary volatility, this has caused sell-offs in equity markets all over the world.” 

The senior analyst at Swastika Investmart said that the investors must be aware that the business of insurance is long-term in nature, and recommend investors to stay with the company for the long term even if the company lists at a discount. 

The Rs 21000-crore IPO of LIC was subscribed nearly 3 times between May 4 to 9, 2022. As against 16,20,78,067 shares offered, 47,83,67,010 shares were bid for by the state insurer.