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“Large IT companies have corrected 15%, 18%, 20%. Some of the prominent banks have corrected 15-20%. These largecap names which have much better numbers and cash flows provide a much better opportunity rather than scouting for a deep correction in Zomato or ,” says Hemang Jani, Equity Strategist & Senior Group VP, MOFSL.



Will LIC issue make money in the short term, medium term and long term?
Definitely, we expect about 7-10% of listing gains for investors apart from the fact that for the retail and the policyholders, there is a reasonably good discount. The valuation has been cut down to Rs 6 lakh crore from about Rs 12 lakh crore earlier. At one point, definitely that looks quite interesting.

So from a short to medium term, I do not see any issue but typically in a PSU company, when you are trying to take a two year, three year, five year kind of a view it becomes a challenge and it depends a lot on what kind of management we are looking at to drive the competitive landscape that insurance is today in terms of product launch, digital framework etc.

It would be difficult to gauge that but from a purely listing gain point of view and short to medium term perspective, given the attractive pricing and stronger numbers that LIC offers, there is an opportunity for everyone.

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

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Till about a few months back, the entire newly listed universe, the IPO frenzy, Paytm issue were brought back to ground zero. We want to understand whether in the recent decline, the likes of Zomato, Paytm etc. have fallen enough to be bought again?
We are at the stage of the market where the appetite for some of these newly listed companies in terms of any short-term triggers or growth visibility part is completely missing and though these stocks have corrected, let us say, Zomato has corrected almost about 50% from the top and same is the case with some of the other names.

In the case of Paytm, the fall is even sharper and our clear cut understanding is that in the newly listed companies, there was a theme and an opportunity in a low interest rate environment and some of them did exceptionally well. But in the current scenario, this appetite is completely missing and so rather than buying something because it has corrected 15%, it would make more sense to look out for opportunities in the large listed space, where again the stocks have corrected.

Large IT companies have corrected 15%, 18%, 20%. Some of the prominent banks have corrected 15-20%. These largecap names which have much better numbers and cash flows provide a much better opportunity rather than scouting for a deep correction in Zomato or Paytm at this point of time.

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