LIC listing: Buy, sell or hold, what should investors do after it lists on Tuesday?

New Delhi: The Life Insurance Corporation (LIC) is finally making its debut on the stock markets today, after a much- hyped initial public offering (IPO) that attracted an over-whelming investor response by garnering Rs 21,000 crore for the government.

The central government had for long been planning to bring LIC share sale, which was earlier delayed by the pandemic and unfavourable market conditions. When it was finally announced in April, the government lowered the size of the sale and revised the expected valuation of the insurance major.

But, the LIC’s listing is not coming at an opportune time as the stock markets are facing multiple headwinds at present, which include soaring inflation and rising interest rates. With investors having LIC shares in their demat accounts after emerging as successful during bidding, they now face the question of how to go from here with the stock – whether to exit at the time of listing if it lists at a premium, hold it for the short terms or treat it as a long-term investment.

Experts and analysts are expecting a subdued listing for the insurance behemoth on the bourses because of the current volatility in global equity markets.

They, however, are of the view that investors should not panic watching market turmoil and instead they should hold the shares for the medium-to long-term. If the shares list at discount, buyers have good chance to accumulate them by taking volatility as an opportunity, experts suggested.

The government sold 3.5 percent of its equity in LIC for Rs 21,000 crore. The sale received mega response and was subscribed 2.95 times with policyholders leading the charge, followed by employees' and retail portions.