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India's largest insurer, Life Insurance Corporation (LIC), debuted on stock exchanges on a weak note with shares trading 8.62 per cent below the issue price.
On pre-opening, the shares were settled at ₹872 per share on NSE against their issue price of ₹949 each. The ₹20,557 crore IPO closed on May 9. LIC's IPO was India's largest to date and closed with almost 3 times as many subscriptions.
LIC shares started their journey on NSE at Rs 872 each, a discount of Rs 77 or 8.1 per cent. The big market debut was in line with the upbeat mood seen in the gray market, an unofficial market for unlisted securities, in recent days.
The LIC scrip opened at Rs 867.20 on the BSE, 8.62 per cent lower than the issue price of Rs 949. On the NSE, 8.11 per cent lower at Rs 872.00.
After the trading bell, at 10:01 a.m. m., LIC shares were trading at Rs 908.05 per share on BSE, down Rs 40.95 (4.32 per cent), while on NSE it was at Rs 914.90, down Rs 34.10 (3.59 per cent).
The market capitalization stood at Rs 5,74,341.42 crore, data from the BSE showed.
The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through the initial public offering. The price range of the issue was Rs 902 to Rs 949 per share. However, the shares were allocated to investors on May 12 at the higher end of the price band.
LIC's initial public offering, India's largest to date, closed with nearly 3x subscription, taken up predominantly by retail and institutional buyers, but participation from foreign investors remained muted.
So far, the amount mobilized from Paytm's 2021 IPO was the largest so far at Rs 18.3 billion, followed by Coal India (2010) with almost Rs 15.5 billion and Reliance Power (2008) with 11 700 million rupees.
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