Ending wait, LIC gets robust welcome on stocks
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New Delhi: Life Insurance Corporation of India debuted on stock exchanges on Tuesday, ending investors' long wait.
India's Insurance major's public offering received a robust response from investors, according to IANS.
Policyholders were given shares at Rs 889 apiece after a discount of Rs 60 per share.
Despite this, LIC made a weak listing on the bourses.
Offering a discount from its Initial Public Offering (IPO) issue price of Rs 949, the insurance major was listed at a discount of 8.62 per cent at Rs 867.
Meanwhile, employees and retailers were offered shares at Rs 904.
The listing price of LIC was non-profitable for all categories of investors, including policyholders, according to The Economic Times.
It received bids for 46.77 crore equity shares against the IPO size of 16.2 crore equity shares.
Poor listing apart, market analysts are upbeat about LIC and believe that investors will stick around for the long term.
The portion set aside for policyholders has been subscribed 5.97 times, employees bid 4.31 times the allotted quota and retail investors 1.94 times, while the reserved portion of qualified institutional buyers has booked 2.83 times and that of non-institutional investors 2.8 times, IANS reported.
The long-awaited IPO for the LIC was open for subscription till May 9.
With inputs from IANS