India’s largest life cover provider Life Insurance Corporation of India (LIC) made a lacklustre debut on the bourses on May 17, with declining nearly 9.4 percent after its initial public offering was subscribed nearly three times last week.
The stock opened at Rs 867.20, against an issue price of Rs 949 on the BSE and touched a high and a low of Rs 886.80 and Rs 860.10, respectively.
At 10.05am, the scrip was trading at Rs 883.40 on BSE, down 7 percent from its issue price of Rs 949 a share. India's benchmark Sensex rose 0.62% to 53224 points.
Corrections in the equity markets globally seem to have hit the listing for the biggest public issue in the history of the Indian capital market.
The situation was worsened by mounting inflationary pressure, stricter lockdowns imposed in China to combat Covid outbreak, and an unabated war on Ukraine by Russian forces.
After the debut in the market, LIC has become the fifth most-valued Indian listed firm with a market capital of Rs 5.71 trillion.
Reliance Industries Limited is the nation's most valued firm with an MCap of Rs 16.42 trillion followed by TCS, HDFC Bank and Infosys Ltd.
LIC doesn’t have a strong digital presence and 90 percent of its policies are sold by agents
If this trend continues, then total cost is likely to increase for LIC, going forward.