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LIC shares were trading at 872 rupees in pre-open trade compared to the offer price of 949 rupees
Photo Credit : Reuters
Shares in state-owned Life Insurance Corp of India (LIC) were on track to debut at an 8 per cent discount to their IPO price on Tuesday.
LIC shares were trading at 872 rupees in pre-open trade compared to the offer price of 949 rupees.
The stock fetched a market capitalisation of Rs 5,57,675.05 crore in the first few minutes of listing against Rs 6,00,242 crore at the issue price.
"Our call of the day suggests LIC is likely to witness a sluggish opening and perhaps the stock could list anywhere between Rs 900-Rs 945. LIC’s grey market premium (GMP) too is indicating a lackluster listing. LIC’s weak listing can dent sentiments further at Dalal Street. Another main reason for the pessimism can be attributed to relentless selling from the FIIs camp. FIIs continue to be net sellers for the 8th straight month since October 2021. The FIIs camp have sold shares worth Rs. 32,701 mark in the month of May. In yesterday’s trade too, FIIs sold shares worth Rs. 1788.90 crore while DIIs bought shares worth Rs. 1428.40 crore," said Prashanth Tapse, Vice President (Research), Mehta Equities.
The stock recovered and its m-cap improved to Rs 5,77,282.54 crore on BSE, still down Rs 22,959 crore.
At 10.09 am, the scrip was trading at Rs 905.85, down 4.55 per cent.
Earlier in the day, Macquarie initiated coverage on the stock with a 'neutral' rating.
The foreign brokerage has suggested a target for LIC at Rs 1,000, which hints at a modest 5.37 per cent upside over the issue price of Rs 949.
(With Inputs From Reuters)