New Delhi, Feb. 27 -- Penny stocks appeal to stock market investors seeking high-growth opportunities at a lower price. These stocks are associated with smaller companies and come with higher risk, but their potential for rapid gains can be attractive.

Even prominent institutional investors, such as the Life Insurance Corporation of India (LIC), hold some penny stocks in their portfolios, indicating that even low-priced stocks can have potential growth opportunities.

LIC portfolio currently comprises over 330 companies, holding over 1 percentage point stake, as of December 2024 quarter.

As of the December 2024 quarter, LIC's investments in listed companies were valued at Rs.14.72 trillion. However, their value has declined to Rs.13.87 ...