LIC share down over 10% from IPO price: Buy, sell, hold -- what should you do now?

The shares of LIC fell by another 4.13% to Rs 840.20 on Thursday (May 19).

New Delhi: The shares of Life Insurance Corporation of India (LIC) fell by another 4.13% to Rs 840.20 on Thursday (May 19). So far, in the three days, the share has fallen by more than 10% from its IPO price of Rs 949 per share. LIC shares had listed at 867 on BSE on Tuesday, May 17. The share price slightly increased on May 18, closing the gap with the IPO price. But today’s downfall must have now left investors worried about what to do next. If you are currently holding LIC IPO shares, you must also be thinking about either selling or holding the share. 

LIC IPO had received was subscribed 3x in the six-day long subscription window, which included weekend days as well, unlike the usual three-day window provided to companies to mop up the funds. 

Should you Buy, Sell or Hold LIC IPO shares? 

Several brokerage firms have given a neutral rating to LIC shares. For instance, Macquarie, which has also a neutral rating, has put a target price of Rs 1,000 on the share. 

Meanwhile, according to Zee Business Senior Research Analyst Varun Dubey, LIC stock has become the world’s cheapest insurance stock on the back of attractive valuations. 

Aamar Deo Singh, Head Advisory, Angel One, told FinancialExpress.com, that global inflationary concerns coupled with investor sentiments jittery on world economic growth, also appear to have had a negative impact on LIC in the short-term. Also Read: Uber hikes ride fares to support drivers as fuel prices rise, big setback for passengers

According to Singh, investors should hold onto the stock as a long-term investment, given LIC’s leadership position in the insurance business. He also cited the future potential of the business in the coming years as another reason why investors should hold the stock. Also Read: Indian, Chinese companies take lead in AI use: IBM report

Disclaimer: The above-mentioned recommendations are of the respective brokerage firms and research analysts. Investors should consult their financial investing before investing in stocks.