Shares of Life Insurance Corporation of India (LIC) made a drab market debut on Tuesday, with the stock listing at Rs 872 each on the NSE, a discount of about 8% from its IPO issue price of Rs 949 per share. LIC shares began trading on the BSE at Rs 867. The shares climbed to Rs 886 per share in early trading but remained below the issue price.

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According to stock market analysts, allottees who applied for listing gains can hold the stock with a stop loss at Rs 800, while new investors can continue to acquire LIC shares in a measured way with a stop loss of around Rs 735 per share levels.

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“LIC shares have opened at a discounted price only due to the negative secondary market sentiments. Allottees who have a long-term view can take this as an opportunity to accumulate on every 5% dip from its listing price levels whereas fresh investors can start buying LIC shares in a calibrated manner till it is above Rs 730 levels,” said Anuj Gupta, ‪Vice President — Research at IIFL Securities.

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Following a successful initial public offering that netted the government Rs 20,557 crore, LIC set the issue price of its shares at Rs 949 per share.

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After taking into account the markdown, LIC policyholders and retail investors received the shares for Rs 889 and Rs 904 per share, respectively. On Tuesday, the shares were listed on the BSE and NSE at a discount of Rs 81.80 and Rs 77 per share, respectively, to the issue price of Rs 949 per share.

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Through the IPO, the government sold approximately 22.13 crore shares or a 3.5% stake in LIC. The issue’s price range was Rs 902-949 per share. However, shares were allocated to investors on May 12 at the peak of the price range.

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The LIC IPO, India’s largest to date, ended with approximately three times subscription, primarily from retail and institutional investors, while foreign investor participation remained low.