Retail investors would love to have LIC in portfolio for longer term even at issue price: Prakash Diwan
Market expert Prakash Diwan tells CNBC-TV18 that retail investors would love to have LIC shares in their portfolio from a longer-term perspective even at the issue price.
“One is you are participating in an industry, and the stock represents the participation of a wholehearted way, which definitely has a secular growth uptrend. There is no doubt that it will grow, though the growth rate might vary quarter-on-quarter and year-on-year. Secondly, the LIC share weightage itself will probably start to see its way come into a lot of indices and once that happens, you will see the demand which is far more than what we have seen in the IPO,” says Diwan, who is confident of LIC garnering secondary demand once the price stabilises.
“Thirdly, remember that today the market is in a mood that is not as buoyant as at the time of some of the other IPOs. There was too much of exuberance, the pricing was a bit steep, and hence the disappointment. With LIC that’s probably not happening. I would believe retail investor for sure will be better off and institutional investors have their own dynamics to adjust,” he adds.