India’s state insurance giant receives lukewarm response to IPO
New Delhi, May 17 (EFE).- India’s state-owned Life Insurance Corporation was on Tuesday listed at the Bombay Stock Exchange with 3.5 percent of its share capital as the largest IPO in the country’s history, although its shares ended the day at 7.75 percent lower than the offer price.
“Today is the culmination of all the hard work that has gone into making it happen, a very exciting journey,” LIC Chairperson MR Kumar said at a ceremony in Mumbai to mark the occasion.
“It is a historic day for us and the government of India. (This is) one of the biggest IPOs in the country,” he added.
On Apr. 27, the insurer had announced that it would offer 3.5 percent of its stake worth about $2.75 billion, at an estimated price of 902-949 rupees ($11.65-$12.25) per share, making it the largest IPO in Indian history.
However, after the first session of trading, each share was priced at 875.45 rupees at the BSE, 7.75 percent lower than the price set initially.
The lukewarm listing did not dampen the spirits of Bombay Stock Exchange CEO Ashish Kumar Chauhan during the inauguration ceremony, as he welcomed LIC to the stock market and said it was “an honor” to list the company.
“LIC is the largest ever IPO listed on the BSE in its 147-years history,” Chauhan said.
He added that over 7.3 million investment applications had been received ahead of the IPO, which could make it one of the largest in the world in terms of number of investors.
“Since Dec. 21, more than 17 million new investor accounts have been open in BSE in anticipation of the IPO,” the CEO said. EFE