After tepid market debut, antsy LIC investors seek Aramco-style dividend
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Disappointed with 7.8% plunge made for the second worst trade debut in the world between the big IPO this year, shareholders of Corp Insurance Corp. put.The 65 -year -old insurance company, the name of the household in the country known as LIC, collected $ 2.7 billion last week in the largest inaugural public offering in the country. After determining the price at 949 Rupees ($ 12.25) each, the top end of the range was marketed, the stock plummeted as much as 9.4% to 860 rupees on the opening minute on Tuesday, before peeling the loss.
Some investors and analysts are worried that prices can fall more due to a few growth prospects for old businesses, the risk of further investment release by the government and the absence of major incentives for shareholders.Stocks are “good portfolio value hedging against volatility,” said Jayesh Bhanushali, Assistant Vice President for research at Iifl Securities Ltd. “3% -4% regular dividends can be a sweetener that will keep the shareholders stay,” Bhanushali said.
With a request for a handsome payment, LIC investor releases leaves from the Aramco manual, when the Saudi Arabian giant on the largest IPO convincing investors about a minimum dividend of $ 75 billion per year until at least 2024. It partly helped a minimum dividend of $ 75 billion per year per year up to at least 2024. It partially helped partly help dividend $ 75 billion per year until at least 2024. It partially helped some help some help some help some help some help some help some help some help some help some help some help some help some help some help some help some Helps some help some help some help most of the 2024. Aramco shares soar in their debut 2019.
Although LIC does not make such an appointment in the bidding document, it is unclear whether or how quickly the company will submit to the wishes of investors.
A spokesman for the Ministry of Finance refused to comment while LIC representatives were not immediately available to be asked for comments.If the stock fails to recover, a bad list is regulated to disappoint millions of small investors who bid enthusiastically to this problem because of its long and emotional relationship with the insurance company and its products. The name of the household in India, the company has nearly $ 500 billion assets, 250 million policies and forms nearly two -thirds of the market. The policy holder was offered a discount of 60 Rupees.
“LIC dividend payments must be attractive to maintain investor confidence in stocks,” said Chokkalingam G, a strategist at Equinomics Research & Advisory PVT. “The stock has plummeted below the price given to retail investors and if it falls further, there must be something that attracts investors to hold it. “
The IPO LIC package has faced headwinds from the start, with assessors coming with various estimates for their assessment. It is considering increasing 500 billion rupees ($ 6.5 billion), people who are familiar with the problem said. But global slowdown in fundraising, war in Ukraine and interest rates encouraged the government to cut the target. Modi’s administration decided to move forward with an IPO despite the volatility that weakened investor tastes for equity.
“This is more a bad case of time than others,” said Brian Freitas, an independent research platform analyst based on Auckland Smartkarma.Freitas said that it guarantees that dividends will make it more attractive to some investors, but it will also require them to hold shares for a certain period of time in this turbulent market. “Many investors will not be comfortable,” he added that local investors often dubbed LIC offers as “Aramco Moments” in connection with the Gulf Oil Giant List in 2019 which collected $ 29.4 billion. Some call it “this decade IPO,” is considered important to strengthen government finances and narrow the budget deficit as expenditure and subsidies to increase during Pandemi.
At the listing ceremony in Mumbai on Tuesday, Tuhin Kanta Pandey, the secretary at the divestment department at the Ministry of Finance said the LIC headquarters was “only five minutes from this place and of course it took 65 years to get registered.”LIC is the fourth biggest agreement among the valued global IPO this year, coming when there is a scarcity of large offers at the financial center from New York to London and Hong Kong. There is no list that exceeds $ 1 billion in Hong Kong or Europe so far this year.Some investors want to hold LIC shares in the long run as part of their wealth portfolio so stable prices.
“Dividends will help,” said Debkumar Bandyopadhyay, 57, who works as a consultant in Bangalore. “The company managed by the government is a slow player. My investment has also been led by the value offered by LIC and not so much growth.”Jumming up on the first day of trading also encouraged several investors to enter and buy.”As Warren Buffett said, if everyone sells, please and buy,” said Rajendra Agarwal, 54, who runs an investment company and buys 200 LIC shares after falling. “We hope that stocks will have more upside down than downside.”
Disappointed with 7.8% plunge made for the second worst trade debut in the world between the big IPO this year, shareholders of Corp Insurance Corp. put.The 65 -year -old insurance company, the name of the household in the country known as LIC, collected $ 2.7 billion last week in the largest inaugural public offering in…