LIC shares list at a discount

Mumbai: Shares of Life Insurance Corporation (LIC) 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 shares on further weakness.

At a market value of ₹5.53 lakh crore, LIC is India's fifth most valuable company, after , , , and .

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.

"While LIC debuted at a slight discount to its issue price, investors should not look to exit at current levels and hold the stock from a medium- to long-term perspective," said B Gopkumar, MD, Axis Securities. "Its sustained market leadership position, robust pan-India distribution network, and shifting focus towards profitable products will make LIC an attractive pick from a long-term perspective."

LIC's IPO was subscribed nearly 3 times led by strong demand from the insurer's policyholders and employees.