LIC shares may face pressure as anchor lock-in ends today

Mumbai: Shares of Life Insurance Corporation () will likely remain under pressure this week as the 30-day lock-in for anchor investors ends on Monday. The stock has already declined a quarter so far from its IPO price.

Anchor investors, who collectively bought nearly 59.3 million shares a day before the IPO opened for subscription at ₹949 apiece, can sell their shares in the open market from Monday.

The stock fell over the past nine consecutive sessions – from ₹837 to ₹709.70 on Friday. Analysts expect a further correction in the stock, and according to them, the low made on the first day of trade after the lock-in period may act as a support for a fundamentally sound business.


“LIC share prices may drop further, but high-risk appetite investors may hold their positions,” said Ravi Singh, head of research, Share India. “It is expected that in the long run, the business metrics of LIC will improve steadily. Investment done at lower levels will deliver good returns in the long term.”

LIC’s M-Cap of ₹4.49 lakh crore on Friday is much lower than its embedded value (EV) of about ₹5.4 lakh crore as of September 30, 2021. Listed private sector peers

, , and Life are currently traded at a valuation multiple of 2 to 3.5 times FY22 EV. LIC shares were listed on May 17, 2022, at ₹865 on the BSE, an 8.62% discount from the IPO price of ₹949.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Education News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.