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LIC shares closed almost flat at Rs 876.25 per share after ending at Rs 875.45 on the BSE. The state-owned insurance giant LIC's shares closed nearly 8 per cent from its allotment price of Rs. 949 on its market debut on Tuesday.
After LIC's flop debut - the world's second-worst trading debut among large IPOs this year, shareholders of the company would be counting on a bumper dividend if the government wants them to stay put, reported Bloomberg.
The tepid listing also resulted in a sharp drop in the market capitalisation (m-cap) of the country's largest insurer.
At the issue price of Rs 949, the m-cap of LIC stood at Rs 6,00,242 crore. At the listing price, the valuation of LIC dipped to Rs 5,57,675 crore, resulting in a loss of around Rs 42,500 crore.
Based on its last trade price of Rs 883 per share, LIC's market valuation was Rs 5,58,497.30 crore on Wednesday.
Still, the country's largest insurer, LIC, is India's fifth most valuable company.
The insurance behemoth's shares had ended at Rs 875.45, about 7.75 per cent lower than its issue price and almost flat from its listing price. LIC's shares traded between a low of Rs 860.10 and a high of Rs 920.
LIC listed its shares at a discount of over 8 per cent on the BSE and the NSE from its offer price of 949 rupees before climbing slightly -- though it remained well below that allotment price.
The government raised nearly Rs 21,000 crore from the sale of 3.5 per cent of its stake in LIC, a third of its original target plan.
The muted debut could test the patience of new shareholders as the government seeks to sell state assets to "monetise and modernise" nationalised companies and plug an estimated 16.6 trillion rupee ($213.5 billion) fiscal deficit.