LIC: Anchor lock-in ends today may put pressure on LIC shares

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Mumbai: shares of life insurance corporation () is likely to remain under pressure this week as the 30-day lock-in for anchor investors ends on Monday. The stock has fallen a quarter from its IPO price so far.

Anchor investors, who collectively bought about 59.3 million shares Open for subscription IPO a day earlier at ₹949, 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 are expecting further correction in the stock, and according to them, the lows on the first day of trading after the lock-in period could act as support for the fundamentally strong business.

LIC shares may be under pressure as anchor lock-in ends todayagencies

Ravi Singh, Head of Research, said, “LIC’s share prices may decline further, but high-risk investors may hold on to their positions.” share india, “Hopefully, in the long run, LIC’s business metrics will improve steadily. Investments made at lower levels will give good returns in the long run.”

LIC’s m-cap of ₹4.49 lakh crore as on Friday, is much lower than the embedded value (EV) of around ₹5.4 lakh crore as on September 30, 2021. Enlisted private sector peers

, , and Life are currently trading at a valuation multiplier of 2 to 3.5 times FY22 EV. The shares of LIC got listed on BSE on May 17, 2022 at ₹865, which is 8.62% discount from the IPO price of ₹949.

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