LIC IPO Listing: Lacklustre debut, shares down nearly 8% lower
LIC IPO Listing: Life Insurance Corporation of India's (LIC) widely anticipated listing turned lacklustre, with its shares losing 7.75 per cent from its allotment price on its market debut.
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The insurance behemoth's shares 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.
India's biggest-ever IPO, state-owned insurance giant LIC, listed its shares at a discount of over 8 per cent on the BSE and the NSE on Tuesday.
On the BSE, LIC launched at Rs 867.20 per share, a discount of 8.62 per cent from its mega initial public offering (IPO) allotment price of Rs 949. On the NSE, LIC's listing price was ₹ 872, indicating a discount of 8.11 per cent from the issue price.
LIC had fixed the issue price of its shares at ₹ 949 apiece after a successful issue, which fetched ₹ 20,557 crore to the government.
The tepid listing has 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.
Still, the country's largest insurer, LIC, is the fifth most valuable company in India, with a m-cap of about Rs 5.54 lakh crore.
That tepid debut comes on a day when the broader equity benchmarks rallied for the second consecutive day, snapping a six-session losing streak.
Despite wild gyrations in global financial markets, LIC's IPO got an overwhelming response. The offer was oversubscribed nearly three times, led by policyholders who bid for over six times the shares on offer.
The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through the IPO, a third of its original target plan.