It's a “wait-and-watch” situation for Mayuresh Joshi, head, equity research at William O'Neil, amid the relentless selloff for the Life Insurance Corp. after its market debut last month.
Complete Circle Capital's founder Gurmeet Chadha told BQ Prime's Niraj Shah the changes in the corporate value of the life insurer and the volatility derived from movements in equity market are the key concerns.
Since its debut, shares of India's largest insurer have tumbled nearly 30% from the upper end of its IPO price of Rs 949 apiece.
The selloff in LIC shares intensified after anchor's lock-in period ended. They comprise of large institutions who buy ahead of an IPO to generate demand and had cornered Rs 5,627.3 crore worth of shares in the Rs 21,000-crore IPO—the nation's largest.
LIC's maiden offer was subscribed 2.95 times after the company pared the issue size amid global uncertainty.
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