State-owned Life Insurance Corporation LIC shares made a tepid market debut, listing at a discount of 8.62 per cent against the IPO issue price. The company offered its shares in a price band of Rs 902 -- 949. The stock was listed at 867.20 on the BSE. The market cap of LIC was 5.48 lakh crore.
On BSE, total of 1.5 lakh shares of firm changed hands, amounting to a turnover of 13.03 crore.
On the NSE, the stock was trading at Rs 872, 8.11 per cent lower than the IPO price. The firm's market cap was 5.51 lakh crore. The firm's shares changed hands in total of 44.20 lakh, which is a turnover of Rs 385.4 crore on the NSE.
The grey market premium GMP of LIC IPO was minus 12, signalling a discount to issue price today. The GMP of LIC has fallen from Rs 85 on May 3. The IPO opened on May 4 and closed on May 9.
The IPO was subscribed 2.95 times on the final day of May 9. The share sale received bids for over 47.83 crore 47,83, 67,010 shares against the total issue size of over 16.20 crore 16,20, 78,067 shares. The employees' portion was booked 4.4 times while the portion meant for policyholders was subscribed 6.1 times.
A day ahead of the share sale on May 2 since market was closed on May 3 the insurer garnered Rs 5,620 crore from anchor investors, signalling strong interest. Besides other global funds, domestic mutual fund houses such as HDFC Mutual Fund, SBI, ICICI and Kotak also participated in the anchor issue of LIC. Anchor investors usually invest in an issue a day before the opening of the IPO. They are required to bid for shares within the price band for the IPO. Each anchor investor is required to invest a minimum of Rs 10 crore during the issue.
The government raised Rs 20,557 crore from the IPO. Through the IPO, it sold 3.5 per cent or 22,13, 74,920 shares in the insurer. After the IPO, the stake of the government, which stood at 100 per cent, has been trimmed to 96.50 per cent.