Life Insurance Corporation of India entered the stock exchanges with a big fall on Tuesday listing at 8.62 percent lower from the issue price. The IPO allocated to the bidders on May 9 was allocated on May 12 but brought big disappointment for its investors.
The Shares of LIC were listed at Rs 872 per share, down 8.11 per cent on the NSE and at Rs 867.20, down 8.62 per cent on the BSE. The issue price of LIC shares was Rs 949 per share which made the opening big disappointment.
On May 17 at 12 noon, the shares of LIC were trading at Rs 893.90, down Rs 55.10 or 5.81% from its issue price. During the opening the shares also went up to Rs 920 with a fall up to Rs 860. However the average was trading between Rs 890 to Rs 900.
Let us tell you that the IPO of LIC got a prominent respect from domestic investors. retail and institutional buyers brought the signed for IPO for almost 3 times however, not much interest was shown by the foreugn buyers. With the IPO listing, the Government has managed to secure around Rs 20,557 crore.
LIC policyholders and retail investors were given a discount on the issue price of Rs 60 and Rs 45 respectively, making the price per share for them Rs 889 and Rs 904. The government sold around INR 21000 Crore worth of shares of LIC that is around 3.5 percent. The government was earlier planning to sell 5 percent of their stake but due to the market’s volatile situations, they reduced the size to 3.5 percent of their stake.