hemang jani: Expecting 7-10% listing gains from LIC IPO for investors: Hemang Jani

“Big IT companies have corrected 15%, 18%, 20%. Some major banks have corrected 15-20%. These largecap names that have better numbers and cash flows, instead of scouting for a deeper correction, a provide better opportunities. Or in Zomato,” says Hemang JanikEquity Strategist and Senior Group VP, MOFSL.



Will the LIC issue make money in the short term, medium term and long term?
Certainly, we expect around 7-10% listing profit for investors, apart from the fact that for retail and policyholders, there is a pretty decent discount. Valuation has been reduced from about Rs 12 lakh crore to Rs 6 lakh crore. To a point, of course it sounds interesting enough.

So in the short to medium term, I don’t see any problem, but generally in a PSU company, when you are trying to take a two year, three year, five year approach it becomes a challenge and It depends a lot on this. What kind of management are we looking to drive insurance today’s competitive landscape in terms of product launches, digital infrastructure etc.

It would be difficult to assess, but given the attractive pricing and strong numbers offered by LIC, from a purely listing profit standpoint and from a short to medium term perspective, there is an opportunity for all.

Those who want to subscribe to LIC IPO should go ahead with it, right?
Absolutely, go ahead with subscribing to the IPO.

Also read: 2 New Ideas With Upside Potential Of Over 20% In 1 Year

Till about a few months back, the entire newly listed universe, the IPO frenzy, the Paytm issue was brought down to zero again. We want to understand whether in the recent fall, the likes of Zomato, Paytm etc. have fallen enough to be repurchased?
We are at that stage of the market where the appetite for any short-term trigger or growth visibility part is completely missing for some of these newly listed companies and though these stocks have improved, let’s say, Zomato has lost nearly 50%. done right. It is the same with the % from above and some other names.

In Paytm’s case, the decline is even sharper and our clear understanding is that among the newly listed companies, there was a theme and an opportunity in the low interest rate environment and some of them performed exceptionally well. But in the current scenario, this appetite is completely missing and hence instead of buying something as it has declined by 15%, it would make more sense to look for opportunities in the larger listed space, where the stock has corrected again.

Big IT companies have done 15%, 18%, 20% right. Some major banks have improved 15-20%. These largecap names which have better numbers and cash flow present a better opportunity at the moment rather than looking for deeper corrections in Zomato or Paytm.

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