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LIC IPO Listing: LIC market debut fails to cheer investors, shares tumble after record IPO
LIC IPO Listing LIVE: The much anticipated listing of Life Insurance of India took place on both NSE and BSE at 10 am today. Watch this space for all the buzz around LIC Listing.
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Though the government had brought down the LIC IPO issue size from 5 per cent to 3.5 per cent, to Rs 21,000 crore, it was a landmark public issue in the history of the Indian capital market and India`s biggest IPO till date. The IPO valued LIC at Rs 6 lakh crore.
Girirajan Murugan, CEO of FundsIndia says, "LIC is a long-term play in the Insurance sector and investors should not look at listing gains alone. Any opportunity to add into LIC at a price lower than the IPO price should be used to invest more for the long term. There may be a bit of retail selling today due to the current sentiments in the overall market, but the long term fundamentals of LIC remain intact.
Once the dust settles on the market due to the ongoing issues related to Ukraine- Russia war and the worries on the Inflation front, stocks in the Insurance sector along with other beaten down stocks in the Banking/ NBFC space should see good momentum."
LIC with m-cap of Rs 5.54 lakh cr is fifth most valued Indian company
Reliance Industries is the most valued company with a market capitalisation of Rs 17.12 lakh crore, followed by Tata Consultancy Services (Rs 12.67 lakh crore), HDFC Bank (Rs 7.29 lakh crore) and Infosys (Rs 6.38 lakh crore).
The market capitalisation of LIC is higher than that of HUL (Rs 5.27 lakh crore), ICICI Bank (Rs 4.94 lakh crore), SBI (Rs 4.17 lakh crore) and HDFC (Rs 3.97 lakh crore), as per the BSE data.
Shares of LIC closed at Rs 875.45, down Rs 73.55 or 7.75 per cent over the issue price, on the BSE. At this price, LIC is valued at nearly Rs 5.54 lakh crore.
"Trading Members of the Exchange are hereby informed that effective from May 17, 2022, the equity shares of Life Insurance Corporation of India (Scrip Code: 543526) are listed and admitted to dealings on the Exchange in the list of ``A`` Group Securities," LIC said in a regulatory filing.’
LIC has been listed on the stock exchanges as "A" Group securities.
At the issue price of Rs 949, the market capitalisation of Life Insurance Corporation (LIC) of India stood at Rs 6,00,242 crore. At the listing price, the market capitalisation of LIC dipped to Rs 5,57,675 crore, resulting in a loss of around Rs 42,500 crore in the company`s market capitalisation.
At 11.12 am, the scrip was trading at Rs 881.75 at the BSE. The share rose to a high of Rs 920 in the morning trade.
The LIC IPO -- India's largest to date -- closed with nearly 3 times subscription, predominantly lapped up by retail and institutional buyers, but foreign investor participation remained muted.
The shares got listed on the BSE and NSE on Tuesday at a discount of Rs 81.80 and Rs 77 apiece, respectively, over its issue price of Rs 949 a share.
On the BSE, the shares got listed at Rs 867.20 apiece, down 8.62 per cent over the issue price of Rs 949 a share. LIC had fixed the issue price of its shares at Rs 949 apiece after a successful initial public offering, which fetched Rs 20,557 crore to the government.
LIC lists at 8.11 percent discount at Rs 872 per share on NSE over issue price of Rs 949, Stock exchange data showed
Listing Ceremony of Life Insurance Corporation of India begins with auspicious Lamp Lighting
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: Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management, at BSE
Rupee falls 14 paise to 77.69 against US dollar in early trade.
Sensex rallies 362.9 points to 53,336.74 in early trade. Nifty climbs 122.25 points to 15,964.55.
Shares of Life Insurance Corporation of India traded at 12 percent discount in pre-opening
LIC share will be listed on BSE and NSE at 10 am today
"Even if the shares list flat on Tuesday, retail investors will still be able to make gains due to the discount that was offered so I don`t see it as a bad bet as valuations are also attractive," Narendra Solanki, fundamental research head at domestic brokerage Anand Rathi, told Reuters.
LIC listing was scheduled for March this year, however it had to be deferred as market conditions were not favourable in the wake of the Ukraine conflict.
Volatility in global markets and selling pressure in the domestic stock market are likely to cast a shadow on LIC`s listing, with the shares likely to start trading near the IPO price or at a slight discount, says a reuters report
New Delhi: Amidst heightened anticipation, the much awaited listing of life insurance of India (LIC) on BSE and NSE took place at 10 am today. While all eyes were glued to the opening bell when the insurance behemoth made its debut, the responses were in line with the expectations of a tepid opening. LIC shares got listed on the BSE and NSE at a discount of Rs 81.80 and Rs 77 apiece, respectively. LIC had set its price band for the Initial Public Offer (IPO) at Rs 902 to Rs 949 per equity share.
The initial public offering (IPO) of Life Insurance Corporation of India (LIC) closed on Monday (May 09), the share allotment was made on May 12. News Agency IANS, quoting Brokerage house Swastika Investmart, said that current market situation such as increased inflation statistics, FII outflows, currency weakness, geopolitical and rate hike-related worries might lead to a "flat" listing. However, the stock`s modest float may limit the stock`s post-listing decline.
Following a 6-day bidding process that opened on May 04, the LIC IPO was subscribed 2.95 times on the final day. The policyholder bucket was subscribed 6.11 times while the employees portion saw bidding of 4.39 times. The retail investors` bid was subscribed 1.99 times and the non-institutional investors portion was subscribed 2.91 times. Policyholders have received a discount of Rs 60 per equity share, while retail investors and employees have been offered a discount of Rs 45 on each share.
Thanks for staying with us on the LIVE updates on LIC stock market debut. Here are the highlights.