With a #marketcap of ₹5.53 lakh crores, #lic is India’s fifth most valuable company after #relianceindustries , #TCS#infosys and #hdfcbank .
LIC’s #initialpublicoffering which was open for subscription starting May 4th uptill May 9th, has been the largest #ipo ever in India’s history of IPO’s. It was approximately three times #oversubscribed indicating a strong demand from the insurer’s #policyholders and employees. Keeping in mind the #secondarymarket conditions, #analysts expected LIC to make a modest debut in the market on Tuesday, May 16th, it did live up to their expectations for which market uncertainty should be given credit. The shares listed at a discount of 8.62% on the Bombay stock exchange and the closing was 7.8% lower than the bid acceptance price. According to the Managing director at #axisbank , the #stock should be held in medium to #longterm perspective instead of exiting short term.
So what makes LIC a good long term pick even after the modest debut made but it’s initially public offering?
Here’s what:
-Robust pan India distribution network
-Sustained market leadership position
-Large market value
-Shifting focus towards profitable products will make LIC an attractive long term pick
So will you be picking this stock now or are you willing to let it slide?