Trending:

LIC listing: Shares end at Rs 875 apiece in debut trade on BSE, down 8% from issue price

LIC shares opened at Rs 867.20 apiece on the BSE, down 8.62 per cent against the issue price of Rs 949. On the NSE, the scrip opened 8.11 per cent lower at Rs 872.00 per unit.

ET Now Digital

Updated May 17, 2022, 22:57 IST

Image source: ET

New Delhi: Life Insurance Corporation of India (LIC) shares marked its debut on the stock exchanges on a tepid note on Tuesday, listing at a discount of over 8 per cent over the issue price.

LIC shares opened at Rs 867.20 apiece on the BSE, down 8.62 per cent against the issue price of Rs 949. On the NSE, the scrip opened 8.11 per cent lower at Rs 872.00 per unit.

Throughout its debut session, LIC shares traded lower from the issue price, hitting a high of Rs 920.00 on the BSE and Rs 918.95 on the NSE. On the lower side, the scrip touched Rs 860.10 on the BSE and Rs the 860 on the NSE.

Finally, shares settled at Rs 875.45 a unit on the BSE, down Rs 73.55 (7.75 per cent) from the issue price; and at Rs 873 apiece, down Rs 76 (8.01 per cent) on the NSE.

The market capitalisation (m-cap) of the insurance behemoth at Rs 5,53,721.92 crore, according to BSE data.

With this market capitalisation, LIC is the fifth most valuable company in the country.

The Rs 21,000 crore blockbuster initial public offering (IPO) of LIC drew a good response from investors and was subscribed 2.95 times after a 6-day long subscription period from May 4-9. The issue price was fixed at Rs 949 apiece for allotment to investors.

All policyholders and retail investors got the shares at a price of Rs 889 and Rs 904 apiece, respectively, after the discount offered. The government had offered a discount of Rs 60 per share for the policyholders and Rs 45 apiece for retail investors and LIC employees.

On LIC’s weak listing, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said the weak debut of LIC on the bourses was due to unpredictable market conditions and suggested investors to hold on to the stock for long-term value.

“Nobody can predict the market. We have been saying that it should not be held for a particular day but for more than a day,” Pandey told reporters after the listing.

Latest News