Mumbai (Maharashtra) [India], May 17 (ANI): The much-awaited stock market listing of Life Insurance Corporation of India has failed to cheer investors as the scrip debuted at around 9 per cent discount at Rs 867.20 apiece at the BSE on Tuesday against its issue price of Rs 949.

At the NSE trading in LIC shares started at Rs 872.

The tepid listing has resulted in a sharp drop in the market capitalisation of the country's largest insurer.

At the issue price of Rs 949, the market capitalisation of Life Insurance Corporation (LIC) of India stood at Rs 6,00,242 crore. At the listing price, the market capitalisation of LIC dipped to Rs 5,57,675 crore, resulting in a loss of around Rs 42,500 crore in the company's market capitalisation.

After listing at heavy discounts, LIC shares rebounded partially. LIC was trading at Rs 883.65 at the BSE at 13.21 pm, which is 1.90 per cent higher than its listing price of Rs 867.20. However, it was still 6.89 per cent down when compared with its issue price.

At the NSE the scrip was trading at Rs 884.65, which is 6.78 per cent down from its issue price.

The initial public offering of LIC, which was opened for subscription from May 4 to May 9, was subscribed 2.95 times.

The country's largest insurer LIC had set its price band for the Initial Public Offer (IPO) at Rs 902 to Rs 949 per equity share. As the IPO is fully subscribed the issue price stood at Rs 949 per share. Policyholders have received a discount of Rs 60 per equity share, while retail investors and employees have been offered a discount of Rs 45 on each share.

LIC has been listed on the stock exchanges as "A" Group securities. "Trading Members of the Exchange are hereby informed that effective from May 17, 2022, the equity shares of Life Insurance Corporation of India (Scrip Code: 543526) are listed and admitted to dealings on the Exchange in the list of ''A'' Group Securities," LIC said in a regulatory filing. (ANI)