LIC Investors Lost Rs 50,000 Crore As Share Prices Reduce 8% On Day 1

The life insurance company made a weak debut on Indian exchanges, listing at a discount of 9%.
The life insurance company made a weak debut on Indian exchanges, listing at a discount of 9%.

The highly awaited listing of the country’s largest insurer Life Insurance Corporation made its debut on the Indian exchanges on Tuesday, however slightly lower than its issue price of Rs 949/share.

The life insurer got listed at a discount of 8.5% at Rs 867.2 apiece on the BSE and at a discount of 8.1% on the NSE, compared to its issue price.

Not just that, LIC’s tepid debut on Dalal Street pulled down its investors’ wealth by more than Rs 50,000, as the company’s market capitalization after the listing fell down by the same amount.

Here’s everything you need to know about the country’s largest IPO ever and its listing on the Indian bourses on May 17.

LIC Lists 9% Lower than its Issue Price

The nation’s largest insurer LIC made a weak start to the Indian exchanges on Tuesday, losing over Rs 50,000 of its market valuation at the time.

Its m-cap dipped to Rs 5.54 lakh crore at the time of listing, compared to Rs 6 lakh crore at the issue price.

The state-owned insurer raised nearly Rs 21,000 crore through its initial public offering, which was open for subscription from May 4-9, 2022, and was valued at Rs 6.01 trillion.

As the session closed on Tuesday, LIC’s shares ended 8.04% lower at Rs 872.7 apiece, compared to its issue price, with a valuation of Rs 5.52 trillion. In the day, it hit a high of Rs 920/share and a low of Rs 860.1/share.

The Indian government sold a stake of 3.5% in the life insurer, of its 100% stake held in the company, while the insurer offered a discount of Rs 60 to its eligible policyholders, and a Rs 45 discount to its employees and retail investors.

Global brokerage Macquarie has kept a neutral rating on the life insurance stock, setting a target price at Rs 1,000/share. 

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