Shares of Life Insurance Corporation (LIC) closed 8 per cent lower to their IPO issue price on listing day today. LIC stock ended at Rs 875.45, 7.75 per cent lower to the IPO issue price of Rs 949 on BSE.
However, the stock closed 0.95 percent or Rs 8.25 higher to the listing price of Rs 867.20 today. Market cap of LIC ended at Rs 5.53 lakh crore on BSE.
Total 27.53 lakh shares of the firm changed hands amounting to a turnover of Rs 245.34 crore. The company offered its shares in a price band of Rs 902- Rs 949. The IPO opened on May 4 and closed on May 9. The IPO was subscribed 2.95 times on the final day (May 9).
Weak LIC listing due to unpredictable market conditions, says DIPAM Secy
On NSE, the stock closed 8 per cent lower at Rs 873 compared to the issue price. It listed at Rs 872 on the bourse.┬а Market cap of the firm stood at Rs 5.52 lakh crore.
Hemang Jani, Head – Equity Strategy, Broking and Distribution, Motilal Oswal said, “Though LIC listing has been below the issue price of Rs 949, given the attractive valuations and stability in the markets, we expect some buying interest in the stock both from retail and intuitional investors. Since large amount of money has been released post listing of LIC, part of this money could get diverted into equity markets.”
Earlier, the large cap stock made a tepid market debut, listing at a discount of 8.62 per cent against the IPO issue price. The company sold its shares in a price band of Rs 902- Rs 949. The stock listed at Rs 867.20 on BSE. On NSE, the stock listed at Rs 872, 8.11 per cent lower to the IPO price. Market cap of the firm stood at Rs 5.51 lakh crore.
