Life Insurance Corporation (LIC) made its public debut on Tuesday at Rs 865 per share, about nine percent lower than the issue price of Rs 949 each.
On the Bombay Stock Exchange (BSE), LIC shares started trading at Rs 867.20. Shortly after 11am, it was trading at Rs 881.75 on the BSE.
Selling pressure in domestic markets and volatility at the global level also cast a shadow over the listing of India’s largest IPO.
The IPO saw enthusiastic participation from small investors and was nearly three times oversubscribed during the six-day application period. So there was hope that the listing would improve stock market sentiment.
But his lukewarm debut has filled Twitter and other social media platforms with memes, summarizing the mood of those who invested in the LIC IPO.
“Buying a LIC policy for LIC IPO,” said one Twitter user. “First IPO with terrible listing,” another tweeted.
Here are some other memes:
— ???????? (@shagun_mahi77) May 17, 2022
— mush says (@BalarMush) May 17, 2022
— prathmesh rathore (@jhakkasbhidu) May 17, 2022
First IPO with terrible listing
— Suraj Gautam (@SurajGa9) May 17, 2022
The IPO was postponed from March due to market volatility and was reduced by a third of the original target due to limited demand.
The listing comes as Indian stock benchmarks rose for a second consecutive session on Tuesday as the rupee weakened to an all-time low.
Founded in 1956 by nationalizing and combining over 240 companies, LIC was synonymous with life insurance in post-independence India for decades, until the advent of private companies in 2000.
It continues to lead the pack with a 61 percent market share in India, with its army of 1.3 million “LIC agents” giving it huge reach, especially in remote rural areas.
But LIC’s market share has steadily declined in the face of competition from net-savvy private insurers offering specialty products.
The IPO followed years of effort by bankers and bureaucrats to assess and prepare the giant insurer for listing.