Mumbai: Shares in state-owned Life Insurance Corp of India (LIC) slid 5% in their market debut on Tuesday, with sentiment hurt by recent market volatility.
The government raised about $2.7 billion from selling a 3.5% stake in the country’s biggest insurer and largest domestic financial investor, marking India’s biggest IPO to date.
Also read: Other PSU Sales Are Postponed, So Why Should Top Brand LIC Play on Losing Wicket?
The IPO was priced last week at Rs 949, the top of the indicated range.
Shares were trading at Rs 900 on Tuesday morning.
Former finance secretary Subhash Garg said in a tweet said the discount was suspected – and the shares are now possible rushing towards their right valuation.
LIC listed at a discount as suspected. 2 crore shares, about 10% of the issue, sold and bought in first 15 minutes. Possibly, there is sponsored buying. True value is less than half the issue price. Looks like LIC shares are rushing towards its right valuation.
— Subhash Chandra Garg (@Subhashgarg1960) May 17, 2022
(With Reuters inputs)