Shares of Life Insurance Corporation of India (LIC) made a muted debut as India’s biggest initial public offering (IPO) listed on stock exchanges on Tuesday despite being subscribed 2.95 times. LIC’s shares were listed on stock exchanges at Rs 865 per equity share on BSE, a discount of 9 per cent against the issue price of Rs 949 per share.
This comes after the initial share sale witnessed a good response from domestic investors and fetched Rs 20,557 crore for the government.
However, volatility in global markets and selling pressure in the domestic stock market cast a shadow on LIC’s share listing.
The government had fixed the issue price of LIC shares at Rs 949 apiece for allotment to investors. LIC policyholders and retail investors have got the shares at a price of Rs 889 and Rs 904 apiece, respectively, after taking into account the discount offered.
LIC’s IPO closed on May 9 and shares were allocated to bidders on May 12. 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.