LIC Stock Lists At Discount To IPO Price, Shares Offer No Profits To Holders

Listing of shares in LIC were at around Rs 880 levels, however, the stock moved higher to last trade at Rs 900 giving no profits to investors of the IPO, except the policy holders. The stock of LIC was seen quoting at Rs 900 per share.

The government has fixed the issue price of LIC shares at Rs 949 apiece, the upper end of the IPO price band, ahead of the listing of the country's largest insurer on May 17. However, LIC policyholders and retail investors have got the shares at a price of Rs 889 and Rs 904 a piece, respectively. The Initial Public Offering (IPO) of Life Insurance Corporation (LIC) closed on May 9 and shares were allocated to bidders on May 12.

The government sold over 22.13 crore shares or 3.5 per cent stake in LIC through the IPO at a price band of Rs 902-949 a share. The retail investors and eligible employees of LIC were offered a discount of Rs 45 per equity share over the issue price, while policyholders got a discount of Rs 60 per share. As per the prospectus filed by LIC on May 12, the offer price of the share sale has been fixed at Rs 949 per equity share.