Government sold over 22.13 crore shares or 3.5% stake in LIC through IPO, a third of its original target plan. This was down from 5% earlier discussed
India's biggest-ever IPO, the Life Insurance Corporation of India (LIC) got listed on the stock market on Tuesday. The company's stocks are listed today at a discount of 9% from their offer price band. This means investors were in for a shock on day one with a loss of about Rs 84 per share.
Shares of the insurance behemoth started trading on BSE and NSE on Tuesday morning at Rs 872 per share, down 8.11% from its IPO price of Rs 949 per share. According to the NSE, the stock was last down over 3.5%, at about Rs 914. LIC launched its IPO for retail investors on May 4.
Read | LIC IPO listing on May 17: Here's step-by-step process to check allotment status online
The insurance company had given a discount of Rs 45 per share to retail investors and its employees, while a discount of Rs 60 per share was given to the policyholders of LIC. With today's listing, while policyholders have suffered a loss of only Rs 24 per share, retail investors and LIC employees will suffer a loss of Rs 39 per share.
The government sold over 22.13 crore shares or a 3.5% stake in LIC through the IPO, a third of its original target plan. This was down from 5% that was earlier discussed. 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.
Every segment was oversubscribed
Being a government company, investors had a lot of confidence in LIC shares due to its large stake in the insurance sector and strong branding. This is the reason that it was subscribed 2.95 times in the bidding for the IPO from May 4 to May 9. That is, against the 16.2 crore shares floated in the market, bids were received for 47.77 crore shares. However, foreign investors kept a distance from its shares.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "LIC listed at 9% discount in the market today")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}