New Delhi,(thestates.news)| Shares of Life Insurance Corporation of India (LIC), one of the country’s most talked-about stocks made their investors anxious since its listing. LIC’s stock has been falling continuously since it was listed on BSE and NSE on May 17 at a discount of more than 8 percent. On the day of listing also, this share of Rs 949 was listed on NSE at Rs 872 and on BSE at Rs 867.If you look at the trading of the stock market, then it is known that there is a continuous decline in the price of this stock. Even today, the stock declined by 0.91 percent to Rs 812.85. On Wednesday too, the stock had lost nearly 1 percent. Since its listing in the stock market, the woes of investors have increased due to the fall in the stock of LIC.
Due to this stock being sold at a low price in the market, the investors have suffered a lot so far. It has become difficult for investors to withdraw money from this stock. In the current situation, even if an investor wants to withdraw money, then he has no other option but to face huge losses.
LIC had allotted shares to its investors through IPO at a price of Rs 949. However, in this allotment, discounts were also given to policyholders, employees and retail investors of LIC. LIC policyholders were given a discount of Rs 60 per share, while LIC employees and retail investors got a discount of Rs 45 per share. Due to this, one share was lying at a price of Rs 889 to the policyholder and Rs 904 to the employees of LIC and retail investors.
Looking at today’s rate of this stock in the stock market, at present, policyholders are facing a loss of Rs 76.15 per share and retail investors and employees are facing a loss of Rs 91.15 per share. Similarly, the investors who have bought this share at the issue price of Rs 949 are incurring a loss of Rs 136.15 per share. Obviously with such huge losses, it is not easy for the retail investors or policy holders to exit the stock market. With huge losses, such investors are now praying for the speed of this stock to rise in the market at the earliest, so that their trapped money can be removed.
LIC’s IPO was the biggest IPO of the country till date. Through this, LIC had raised about Rs 21,000 crore. Through this IPO, the government has sold 3.5 percent of its stake in the market. In order to make LIC’s IPO a success, perhaps for the first time in the history of the stock market, on the instructions of the Government of India, the subscription was kept open on Saturdays and Sundays as well. People also took this IPO in their hands. But the way the stock price declined after the listing, many people have started seeing their money shrinking.
Stock market experts say that once the market conditions become bullish , LIC’s shares can go up According to Prashant Dhami, Vice President, Dhami Securities, the 6-month target of LIC’s stock is Rs 1,450, while in the event of a correction in the market, after a year, this stock can be seen reaching the level of Rs 1,720. However, Prashant Dhami also says that before investing money in LIC’s stock, investors should also contact their advisors and should also pay attention to the fundamentals of LIC. By doing this, if investors invest in LIC shares for a longer period, they will be less likely to face losses.(H.S.).
