LIC IPO listing: Why shares made lackluster debut on stock market?
India Today
LIC dominates India's insurance sector. The 66-year-old company was the fifth-biggest global insurer in terms of insurance premium collection in 2020. Even after that, shares got listed at a discount price.
LIC's shares on Tuesday made a disappointing debut on the stock market even after its initial public offering (IPO) had become India's largest initial share sale till date. Volatility in global markets and selling pressure in the domestic stock market cast a shadow on LIC's listing.
The country's largest insurer listed its shares at a discount of 8.11 per cent at Rs 872 per share on the NSE. On the BSE, the shares were listed at Rs 867.20 apiece, down 8.62 per cent over the issue price of Rs 949 a share.
LIC had fixed the issue price of its shares at Rs 949 apiece after a successful initial public offering, which fetched Rs 20,557 crore for the government. LIC policyholders and retail investors got the shares at a price of Rs 889 and Rs 904 apiece, respectively, after taking into account the discount offered.
The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through the IPO. The price band of the issue was Rs 902-949 a share.
However, shares were allocated to investors on May 12 at the upper end of the price band.
The LIC IPO -- India's largest to date -- closed with nearly 3 times subscription, predominantly lapped up by retail and institutional buyers, but foreign investor participation remained muted.
LIC dominates India's insurance sector. The 66-year-old company was the fifth-biggest global insurer in terms of insurance premium collection in 2020. Even after that, shares got listed at a discount price.
