Weak listing due to mkt volatility: Dipam secy

MUMBAI: Department of investment and public asset management (DIPAM) secretary Tuhin Kanta Pandey on Tuesday said the weak debut of the country’s largest insurer, Life Insurance Corporation of India (LIC) on the bourses was because of unpredictable market conditions and suggested that investors hold on to the stock for long-term value.

LIC on Tuesday listed its shares at a discount of 8.11% at ₹872 per share on NSE.

On BSE, the shares listed at ₹ 867.20 apiece, down 8.62% over the issue price of ₹949 a share.

LIC had fixed the issue price of its shares at ₹ 949 apiece after a successful initial public offering that fetched the government ₹20,557 crore.

“Nobody can predict the market. We have been saying that it should not be held for a particular day but for more than a day,” Pandey said after the listing of shares.

In LIC’s share sale, which happened through the offerfor-sale route, retail investors and eligible employees were offered a discount of ₹45 per share, and policyholders a discount of ₹60 per share.

LIC policyholders and retail investors have got the shares at Rs889 and ₹904 apiece, respectively, after taking into account the discount offered.

Pandey said there was some protection for retail investors and policyholders who got the shares at a discount price.

LIC chairman M.R. Kumar said the response for the shares in the secondary market is going to be higher and this will pull the prices up.

“The markets are also jittery. We were not expecting a very big jump. It (stock price) will pick up as we go along. I am sure a lot of people will pick up the shares ( in the secondary market),” Kumar said.

The government sold more than 221.3 million shares or a 3.5% stake in the state- run insurance company through the IPO.