LIC’s market debut today amid global market volatility concerns: 10 points
India’s insurance behemoth – the Life Insurance Corporation or LIC – is set to make its market debut on Tuesday after a record-breaking IPO last week. The price range for the issue was set between 902 and 949 rupees per share. By selling about 3.5 per cent stake of the country’s top insurer, the government has raised $2.7 billion or ₹20,557 crore. Volatility in the global market is likely to cast a shadow on the debut, according to analysts.Here are ten points on the LIC market debut:1. Speculation is rife that the market debut of the insurance giant is likely to be lacklustre. Some reports have suggested that shares may get listed below their issue price of ₹949.2. LIC policyholders and retail investors have got the shares at a price of ₹889 and ₹904 apiece. While employees and investors have got a discount of ₹45 rupees per share, policyholders have been given a discount of 60 rupees per share.3. Over 22.13 crore shares have been sold by the government with the IPO, according to a PTI report.4. While foreign investment participation has been largely amiss, the IPO was said to have been lapped up by retail and institutional buyers – it closed with nearly 3 times subscription, PTI reported.5. The LIC IPO – the country’s largest till date – was described as ‘India’s Aramco moment’ by many. Saudi Arabia’s state-oil giant Aramco raised $25 billion in 2019 in the world’s biggest IPO, surpassing Alibaba’s record.6. A latest Ernst and Young report has said that the Indian IPO market witnessed a significant slowdown this year.7. Geopolitical tensions, stock market volatility, a price correction in overvalued stocks from recent IPOs, plus concerns about rising commodity and energy prices, and slower economic growth are believed to be factors behind the slowdown.8. The LIC shares will be listed on the Bombay Stock Exchange and the National Stock Exchange.9. So far, the amount mobilised from the Paytm IPO in 2021 was the largest ever at ₹18,300 crore, followed by Coal India (2010) at nearly ₹15,500 crore and Reliance Power (2008) at ₹11,700 crore.10. The share sale was earlier expected in March but was delayed amid the Ukraine war.(With inputs from PTI, Reuters, ANI)
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