Low float is a double edged sword. A small demand will send the price through the roof whereas, if something worse happens, the price fall will be steep or one may not get a chance to exit due to circuit.
But i dont think LIC has low free float. Infact its free float is more than the the outstanding equity shares of many listed companies. It has a massive 632.5 cr shares outstanding and free float of 2.32% comes to around 15 cr shares. Thats almost 7 times the total outstanding shares of Abbott India (total oustanding and not abbott’s free float). Imagine this monster
On any given day almost 15 -20 lakh shares are traded on NSE alone which is more than almost 90% of the listed companies
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