After reading Financial express blog and checking exchange reports we found that LIC bought 72.16% of 20.65 crore shares of the SAIL in the auction. (Click here to read that post).

Why LIC is buying such poor quality businesses which are even giving lesser returns than banks fixed term deposits and also on top of it 70% of it from auction. Why Government of India straight away approached LIC and asked them to buy whole trench. Was this a match fixing done by both the parties in this transaction. In this transaction surely small and retail investors who bought these shares looks on the wrong side of the transaction.

If they are thinking of getting the same result as what they got while investing and then selling Axis bank than let me tell you that Axis Bank is investment quality business but Sail at this time is not. Replacing Axis bank with Sail might turn out very expensive favour done to GOI on the line of LIC’s shareholders interest.

Time will definitely tell who is right and wrong. We will keep our close eyes on Sail and keep you updated on it.