LIC lists on BSE 8.62% lower than IPO allotted price of Rs 949
On Tuesday, Indian equity indexes surged for the second day in a row, with investors focusing on the market debut of state-owned Life Insurance Corp, while the rupee fell to an all-time low.
Life Insurance Corporation (LIC) on Tuesday listed on the BSE for Rs 867.20 per share, a decrease of 8.62 percent, or Rs 81.80, from its IPO allotted price of 949. The insurance behemoth's NSE listing price was Rs 872, representing an 8.11 percent reduction from the issue price of 949 per share.
According to Reuters, LIC shares were on pace to launch at an 8% discount to their IPO price on Tuesday. On Tuesday, Indian equity indexes surged for the second day in a row, with investors focusing on the market debut of state-owned Life Insurance Corp, while the rupee fell to an all-time low.
The BSE and NSE listed LIC shares at a discount of Rs 81.80 and Rs 77, respectively. LIC has established a price range of Rs 902 to Rs 949 per equity share for its Initial Public Offering (IPO). While all eyes were on the opening bell as the insurance behemoth made its debut, the reactions were consistent with the anticipation of a sluggish start.
The LIC IPO was subscribed 2.95 times on the final day of a 6-day bidding process that began on May 4. The policyholder bucket was bid on 6.11 times, while the employee bucket was bid on 4.39 times. Retail investors' bid was subscribed to 1.99 times, while non-institutional investors' bid was subscribed to 2.91 times. Policyholders received a Rs 60 discount per equity share, while retail investors and employees received a Rs 45 discount per share.
From May 4 to 9, the LIC IPO was open for subscription. The price range for each share was set at Rs 902-949. There was a Rs 45 per equity share discount for LIC employees and retail investors. LIC policyholders were eligible for a Rs 60 per share discount. The LIC IPO was fully an offer-for-sale (OFS), with the federal government attempting to sell 3.5% of its stock in the life insurer.