LIC sees lacklustre debut in stock market, lists at over 8% discount
The country’s largest insurer LIC on Tuesday made a lacklustre debut on stock exchanges on Tuesday, listing at over 8 per cent discount after a successful initial public offering (IPO) which fetched Rs 20,557 crore to the exchequer.
As against the issue price of Rs 949, shares of LIC listed at Rs 872, a discount of Rs 81.80 apiece, on the BSE. The stock listed at Rs 867.20, showing a discount of Rs 77 apiece, on the NSE.
The listing price was also below the price at which shares were allotted to LIC policyholders, employees and retail investors.
The scrip remained below the issue price throughout the trading hours and closed at Rs 873 on NSE and Rs 875.45 on BSE.In the intra-day trade, the shares had touched a low of Rs 860 apiece.
Over 4.87 crore shares changed hands on the NSE, while on BSE it was over 27.52 lakh. With the listing, LIC got into the list of top-5 most valued companies with market capitalisation of nearly Rs 5.54 lakh crore.
LIC shares listed at a discount even as the benchmark BSE Sensex opened in positive zone and closed with a gain of over 2 per cent over previous close.
Life Insurance Corporation (LIC) had fixed the issue price of its shares at Rs 949 apiece after a successful initial public offering, which was over subscribed nearly 3-times when it closed on May 9.
The shares were lapped up mainly by retail and domestic investors, even as foreign investor demand was
muted.
