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Updated May 17th, 2022 at 10:26 IST

LIC IPO: India's biggest IPO lists at Rs 867.20 per share, 8.62% discount on issue price

The LIC market debut came on a dip as the shares settled at a lowered share price of Rs 867.20 per share. The IPO had made stood at Rs 872 in pre-open on NSE.

Reported by: Vishnu V V
LIC IPO
Image: PTI/ SHUTTERSTOCK | Image:self
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In a major development, the Life Insurance Corporation shares have now been listed on the Bombay Stock Exchange. The LIC IPO has now opened at an 8.62% discount at Rs 867.20 per share against the issue price of Rs 949 per share. The LIC Initial Public Offer (IPO) had closed for subscription on May 9 with an over-subscription of 2.95 times on the last day, helping the government mobilise about Rs 21,000 crore.

The LIC market debut came on a dip as the shares settled at a lowered share price of Rs 867.20 per share. The IPO had made earlier stood at Rs 872 in pre-open on NSE. Following the listing, the price further dipped to a 9% discount from the allotment price and then showed a slight recovery as the price climbed to Rs 910.00 by 10:04 AM. Earlier, the grey market data on LIC had also suggested that its shares were likely to be listed on the stock market below the issue price at around Rs 949.

LIC IPO today

The LIC shares were listed with the ringing of the bell at the Bombay Stock Exchange. Meanwhile, speaking about the listing, Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management, at BSE termed it a big boost for the Indian market. “This is a momentous event. LIC IPO is in line with the PM's vision. India is one of the most important emerging markets and it will be one of the fastest-growing economies in this decade,” Pandey said.

 LIC market debut

Since the day of the IPO closing, the shares were quoted at prices a little lower than the issue price. As of Monday, the grey market was showing prices at a discount of Rs 15 to 20 per share. The grey market is an unofficial market where the data is used for trend prediction. LIC had attained a peak in the grey market of Rs 95 per share before the IPO had opened for subscription. However, the recent volatility in the markets washed away the grey market premium for LIC and brought it down under the listing value.

The IPO, which opened for public subscription on May 4 and closed on May 9 has been subscribed 2.5 times. During the period, LIC shares attracted a premium in the range of Rs 8 to 12 per share in the grey market. The IPO was planned to give a profit for the policyholders and employees as they were provided with the shares at discounts.

LIC, the country's largest life insurance company had fixed its price band for the Initial Public Offer IPO at Rs 902 to Rs 949 per equity share. As the IPO has achieved a full subscription, the issue price will be fixed at Rs 949. The policyholders have been given a discount of Rs 60 per equity share while the investors and the policyholders have been offered a discount of Rs 45 per share. 

LIC IPO subscription details

The Life Insurance Corporation IPO was subscribed a total of 2.95 times on the last day of the offer period, helping the government mobilise about Rs 21,000 crore. According to the BSE, the portion of the offering kept for the Qualified Institutional Buyers (QIBs) was subscribed 2.83 times, receiving as many as 11.20 crore bids were received for the 3.95 crore shares earmarked for the segment. Meanwhile, the portion for the non-institutional investors (NIIs) was subscribed 2.91 times. The Retail individual investors’ portion also received bids for 13.77 crore shares as against 6.9 crore shares on offer, translating into an over-subscription of 1.99 times.

Image: PTI/ SHUTTERSTOCK

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Published May 17th, 2022 at 10:26 IST

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