Lackluster Debut: LIC Lists at 9% Discount on Indian Bourses, Market Conditions

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Lackluster Debut: LIC Lists at 9% Discount on Indian Bourses, Market Conditions

By Malvika Gurung

Investing.com -- The country’s largest life insurance company Life Insurance Corporation (NS: LIFI ) made a lukewarm debut on the Indian bourses on Tuesday, listing at a discount of 8.62% at Rs 867.2/share on BSE, compared to its issue price of Rs 949, and at an 8.11% discount on the NSE.

This was after the country’s biggest-ever IPO was subscribed almost three times between May 4-9, and the Government raised nearly Rs 21,000 by selling 3.5% of its 100% held stake in the life insurance.

At 11:03 am, shares of the insurance behemoth were trading 6.1% lower at Rs 891.15 apiece.

The ongoing volatility and erratic corrections witnessed in global as well as domestic markets appear to be hitting the listing of LIC on Tuesday, even though the market opened on a positive note in the session.

At the time of writing, benchmark indices Nifty50 and Sensex were trading 1.5% and 1.46% higher, respectively.

The heightening inflation figures and disappointing Chinese economic data and external factors, along with the Russia-Ukraine war have worsened the already grim global economic scenario.

The IPO response from LIC’s policyholders came in the strongest, as they submitted bids worth 6.12 times the allocated portion. They were offered a discount of Rs 60/share.

Retail investors and employees of LIC were offered a Rs 45/share discount in the bidding process.

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