Insight Bureau: LIC IPO’s grand debut in the stock market sector has showed its opening a bit in red in BSE and NSE today. The shares of insurance sector giant Life Insurance Corporation of India (LIC) debuted the stock exchanges on a weak note on Tuesday listing at 8.62 per cent lower from the issue price.
The LIC scrip opened at Rs 867.20 apiece on the BSE, down 8.62 per cent from the issue price of Rs 949. On the National Stock Exchange (NSE), it opened 8.11 per cent lower at Rs 872.00 per share.
The Rs 21,000 crore blockbuster initial public offering (IPO) of LIC had witnessed a good response from the investors getting subscribed 2.95 times after a marathon 6-day subscription period from May 4-9. The shares which were to be allocated for the qualified institutional buyers (QIBs) was subscribed 2.83 times, while those of non institutional investors was subscribed 2.91 times and that of retail individual investors (RIIs) was subscribed 1.99 times. Apart from these, the policyholders portion was subscribed 6.12 times while the employees segment was subscribed 4.40 times.
The issue price of LIC was fixed at Rs 949 apiece for allotment to investors. All policyholders and retail investors got the shares at a price of Rs 889 and Rs 904 apiece, respectively, after taking into account the discount offered. The government had offered a discount of Rs 60 per share for the policyholders and Rs 45 apiece for retail investors and LIC employees.