Shares of the much-awaited Life Insurance Corporation of India (LIC) made a weak listing on the stock exchanges on Tuesday, 17 May, closing at Rs 872.70 on BSE, down Rs 76.30, or 8.04 percent. The price of the share settled at Rs 873 on National Stock Exchange.
The stock touched an intraday high of Rs 920.00 and an intraday low of Rs 860.10, from its Initial Public Offering (IPO) issue price of Rs 949.
The LIC IPO had, however, received robust response from investors as the insurance major's offer has been subscribed 2.89 times.
It received bids for 46.77 crore equity shares against IPO size of 16.2 crore equity shares.
The portion set aside for policyholders has been subscribed 5.97 times, employees bid 4.31 times the allotted quota, and retail investors 1.94 times, while the reserved portion of qualified institutional buyers has booked 2.83 times and that of non-institutional investors 2.8 times.
The long-awaited IPO for the LIC was open for subscription till 9 May. The government has brought down the issue size from 5 percent to 3.5 percent – Rs 21,000 crore.
It will be a landmark public issue in the history of the Indian capital market and is poised to be India's biggest IPO till date.
The IPO values LIC at Rs 6 lakh crore. The issue offer of the LIC was in the price band of Rs 902 to Rs 949.
Also, the policyholders were offered a Rs 60 discount, while for retail investors, the discount was at Rs 45.
(With inputs from IANS)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)