Exam of lakhs of small investors of LIC tomorrow
If there is a weak listing of LIC's shares in the stock market, then investors investing in the country's largest IPO may be disappointed. In this, lakhs of small investors of the country have invested who have LIC's policy.
New Delhi, Business Desk. There has been a lot of discussion about LIC IPO since the past. LIC's IPO has got thrice the subscription than expected. Now the listing of LIC IPO is going to happen in the stock market on Tuesday i.e. tomorrow. If there is a weak listing of LIC shares, then its impact will be more on people investing in the stock market for the first time. Millions of investors may also get a setback tomorrow.
According to a Bloomberg report, Prime Minister Narendra Modi's government has raised $2.7 billion by selling shares in Life Insurance Corporation of India, which covers millions of families across the country holding LIC policies. The stocks will start trading on Tuesday at a time when markets around the world are being affected by the Ukraine-Russia war and rising interest rates.
Millions of people may get a shock
If the stock performs poorly, millions could suffer. Big investors may get a slight setback, while such small investors, who are investing in it for the first time, will get more shock. Let us tell you that LIC had entered the stock market in the year 2010. LIC is working in 21 states of India.
Amitabh Dubey, political analyst at research firm TS Lombard, was quoted as saying by Bloomberg that if the market price falls, then the mood of the people can be bad. At the same time, the government may have to face criticism.
According to a Bloomberg report, Subhash Chandra Garg, a former top bureaucrat in the finance ministry in the Modi government, said the emotional logic of LIC being a giant and its brand value needs to be converted into profitability for retail investors. For the past few weeks, the situation in the stock market has remained very weak. Foreign investors in Indian markets have sold $24 billion since October last year. Sensex and Nifty have been falling continuously for the last five weeks.
Millions of people have faith in LIC
India's domestic company, which is trusted by millions. LIC has 2,000 branches across the country and more than 1 lakh employees and 286 million policies. This 65-year-old firm has assets of about $500 billion and has 250 million policy holders, which is about two-thirds of the market.
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