Life Insurance Corporation of India (LIC), the largest public offering market launch, saw shares of insurance companies weaken as the BSE fell as much as 5 per cent intraday in Tuesday’s trading session.
Personally, shares of life insurance companies like ICICI Prudential Life, SBI Life, HDFC Life fell by 1 to 2 per cent, while stocks of general insurance companies – ICIC Lombard, General Insurance Company fell by 1 per cent each intraday. BSE.
Meanwhile, shares of Rakesh Jhunjhunwala-backed Star Health and Allied Insurance fell nearly 5 per cent intraday on the BSE.
Shares of LIC opened at around 9% discount on BSE and NSE on Tuesday. They are listed at Rs 867 per share on the BSE and Rs 872 per share on the NSE, as against the issue price of Rs 949 per share in the upper band.
Minutes after the listing, the stock traded up more than 6 percent intra-day on the BSE, at Rs 920 per share. It is trading 4 per cent higher at Rs 903.1 per share at 10:27 AM, compared to the S&P BSE Sensex’s gain of more than 1 per cent.
Prior to its launch in the market, McCurry launched LIC on D-Street with a neutral rating, noting that a large portion of the company is made up of equity MTM (Mark to Market) profits.
Global brokerage said increasing the volume of non-par books was a challenge and maintained a target of Rs 1,000 per share, a 15 per cent rise from the price listed on the exchange.
The national insurer’s initial public offer, which was open from May 4 to 9, has been subscribed 2.95 times on the last day. In contrast to the 16,20,78,067 shares offered, the state-run insurance company received bids for 47,83,67,010 shares.