The much-awaited market debut of LIC after its mega ?21,000 crore IPO last week, turned out to be highly disappointing,
Investors of LIC (Life Insurance Corporation of India) lost over ?50,000 crores on the stock¡¯s debut yesterday, as per a report in Moneycontrol.?
LIC shares got listed at ?867.20 per share, which was an over 8.5% discount from its issue price. This comes even after LIC¡¯s IPO was oversubscribed by nearly three times last week.
LIC raised around ?21,000 crores and was valued at ?6.01 trillion at its upper price band of the issue of ?949 a share.
At the closure of trade in the stock market yesterday on debut, the stock settled at ?872.70 on the BSE, down 8.04% from its issue price, taking its market capitalization to ?5.52 trillion.?
During the trading, LIC stock touched a high and low of ?920 and ?860.10, respectively after opening at ?867.20.?
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With this tepid listing, LIC policyholders and employees also saw their investments turn negative. LIC had reportedly offered a discount of ?60 to eligible policyholders and a rebate of ?45 to retail investors and employees, translating into an issue price of ?889 a share for policyholders and ?904 for retail investors and employees.
Corrections in the equity markets globally seem to have hit the LIC listing, as per the Moneycontrol report.
The situation could have worsened amidst the mounting inflationary pressure in India, stricter lockdowns imposed in China and the ongoing war on Ukraine by Russia which has led to a spike in commodity prices.
According to Bloomberg research, LIC will become the second-worst listing among 11 firms listed globally this year and raised over $1 billion.
However, despite the disappointing debut, some analysts are positive about the stock, saying LIC is a typical blue-chip company that is expected to give steady returns over a long period of time, as per the Moneycontrol report.
Australia based global financial services and brokerage firm Macquarie has reportedly begun with a neutral rating for LIC and kept its target price at ?1,000 a share.
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