Disappointment For India¡¯s Biggest IPO Investors! LIC Shares Open Listing At More Than 8% Discount
After the mega LIC IPO last week, enthusiastic investors were left disappointed as LIC shares got listed at more than 8% discount today on both NSE and BSE.
The shares of insurance sector giant Life Insurance Corporation of India (LIC) have had a weak debut on the stock exchanges today, with the shares listing 8.62% lower from the issue price.
The LIC stock opened at ?867.20 on the BSE, down 8.62% from the issue price of ?949. Whereas on the National Stock Exchange (NSE), it opened 8.11% lower at ?872.00.
This comes as a disappointment for LIC IPO investors who were keenly looking forward to the share listing today after the mega IPO closed last week.
All this comes at the backdrop of a number of mega IPOs turning sour of investors, including Zomato and Paytm. And now, the initial listing of LIC may indicate more disappointment for IPO investors.
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For the uninitiated, the mega ?21,000 crore blockbuster IPO of LIC had witnessed a good response from the enthusiastic investors, getting subscribed 2.95 times after a marathon 6-day subscription period from May 4th-9th. On the other hand, the LIC shares which were to be allocated for the qualified institutional buyers (QIBs) were subscribed 2.83 times, and those of non-institutional investors were subscribed 2.91 times. Also, those allocated to retail individual investors (RIIs) were subscribed 1.99 times. Besides these, the policyholders' portion was subscribed 6.12 times while the employees' segment was subscribed 4.40 times, as per an Indian Express report.
The issue price of LIC was fixed at ?949 per share for allotment to investors. All LIC policyholders and retail investors got the shares at a price of ?889 and ? 904 per share, respectively, after taking into account the discount offered to them.
The government had offered a discount of ?60 per share for its policyholders and ? 45 per share for retail investors and LIC employees, as per the Indian Express report.
But after this disappointing beginning to LIC shares' listing, it remains to be seen how it goes on to perform after the mega IPO last week.
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