Retail investors seemed to be divided on the prospects of the shares of Life Insurance Corporation of India, as one set completely quit even as another kept accumulating the shares.
Retail investors are adopting cost-averaging or buy-on-dips strategy in the country’s biggest insurance major, as the share price kept falling every month. Currently, LIC shares are ruling near their lowest point since listing at Rs. 595 against the issue price of Rs. 904 (for retail investors) and Rs. 889 (for policyholders).
According to the latest shareholding pattern, July-September quarter also witnessed an exodus of over 2.65 lakh retail investors from LIC. However, the number of shares held by 35.23 lakh retail investors has increased to 12.21 crore shares from 11.86 crore shares (q-o-q). This is an addition of 35 lakh shares or 0.05 per cent to 1.93 per cent (1.88 per cent).
In the IPO, 39.86 lakh investors garnered 1.66 per cent stake or 10.51 crore shares. That means, since IPO, over 1.7 crore shares were added by existing retail investors.
This clearly indicates that some retail investors indulged in cost-averaging, believing in a turnaround in LIC scrip.