Shares of Life Insurance Corporation listed at ₹865 on the BSE, an 8.62% discount to the initial public offer price of ₹949 per share. The stock hit a high of ₹920, before closing at ₹875. 45 on the BSE, which was around 7.8% lower than the price at which bids were accepted in the country’s largest ever IPO. Market participants said investors could buy LIC shares on further weakness.
At a market value of ₹5.53 lakh crore, LIC is India’s fifth most valuable company, after Reliance Industries, TCS, Infosys, and HDFC Bank.
Over 5.15 crore LIC shares were traded on Tuesday as against the free float of 16.24 crore shares, excluding shares allotted to anchor investors. Retail investors were allotted shares at ₹904 apiece, a discount of ₹45, or 4.7%, on the issue price.
Policyholders were given the shares at ₹889, a discount of ₹60, or 6.3%, on the issue price.
LIC's IPO was subscribed nearly 3 times led by strong demand from the insurer’s policyholders and employees.