SpreadIt News | Digital Newspaper

Tepid Reaction to India’s Largest-Ever IPO: LIC Lists Over 8% Lower

Life Insurance Corporation (LIC) is 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 Rs 949.

The insurance behemoth’s shares were last trading at 904 as of 10.25 a.m. Indian Standard Time (IST), up more than 4% from their listing price of 867.20 but roughly 5% lower than their issue price of 949 per share.

Advertisement

The insurance behemoth’s NSE listing price was Rs 872, representing an 8.11 percent reduction from the issue price of 949 per share. The stock was recently down 3.61 percent, at Rs 914.75, according to the NSE.

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.

Advertisement

The IPO comes at a time when financial markets have been roiled by concerns about stagflation, as major central banks prepare to boost interest rates aggressively to confront multi-decade high inflation. Emerging market assets have taken a hit as a result of foreign capital outflows fueled by the dollar’s allure and a rise in flight-to-safety transactions.

Despite significant swings in global financial markets, LIC’s IPO received a massive response. The offer was approximately three times oversubscribed, with policyholders bidding for more than six times the number of shares on offer.

Advertisement