InvestorQ : What was the reason for LIC listing at a discount to issue price and then dipping further?
Archita Jajjoo made post

What was the reason for LIC listing at a discount to issue price and then dipping further?

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Niti Shenoi answered.
9 months ago
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In a way, the LIC listing was disappointing with the valuations and the state of markets being an overhang. The irony was that even those who got shares at a discount were disappointed by the listing performance. On Friday, LIC closed at Rs825, a discount of 13% to the issue price of Rs949. It is also at a fairly steep discount to the retail and employee allotment price of Rs904 as well as the LIC policy holders IPO allotment price of Rs889.

One can call it a mixture of boredom and doubts about the issue. LIC did attempt the right things to excite markets. It cut the size of the IPO, toned down valuations and gave generous discounts to retail and policyholders. However, investors had been facing ennui with most of the large IPOs quoting at huge discounts and investors are also very sceptical about the global scenario and the likely impact on India amid all the FPI selling.

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