New Delhi: LIC has become part of the stock market following the largest initial public offering (IPO) in the history of India. LIC, India’s largest insurance company, was listed at Rs 867.20 on the Bombay Stock Exchange, with a discount of 8.6 per cent.
At the same time, within minutes of the start of trading, the stock price touched Rs 900 and maybe touched Rs 918. Shares of LIC were listed on the Stock Exchange at 9 am today. The stock started trading following 10 am. Many experts have suggested that the listing might be cheaper in the current situation. Preliminary assessment is that the LIC share price reflects the volatility in the market in the face of adverse conditions such as inflation and interest rates.
The stock started at Rs 867.20 once morest the issue price of Rs 949 on the BSE and touched a low of Rs 860.10. Then it went up to Rs 918 and then went down. At 10.55 am, the rupee had closed at 898.35. Shares of LIC traded down 8.11 per cent at Rs 872 on the National Stock Exchange.
Although the share price was fixed at Rs 949, the policyholders were paid Rs 889 and the general investors (retail) employees Rs 904 per share as there was a discount. LIC IPO has become the largest IPO in the Indian stock market since PDM raised Rs 18,300 crore in 2021. Other major IPOs include Coal India, which raised Rs 15,500 crore, and Reliance Power, which raised Rs 11,700 crore.
The government raised Rs 21,000 crore by selling 3.5 per cent stake in LIC in its initial public offering. The LIC IPO received a good response from over six times the number of applicants. 221,374,920 equity shares were sold in the previous session. Of the shares, 1,581,249 units were reserved for employees and 22,137,492 units for policyholders.
English Summary: LIC opens at 8.62% discount from issue price on BSE