The DIPAM secretary suggested investors hold onto the stock for long-term value.

“No one can predict the market. We said it shouldn’t be held for a particular day but for more than one day,” Pandey said, speaking to reporters after the shares listed.

LIC listed its shares at a discount of 8.11% to ₹872 per share on NSE. On the BSE, the shares were listed at ₹867.20 each, down 8.62% from the issue price of ₹949 a share.

The lukewarm listing led to a sharp drop in the market capitalization of the country’s largest insurer.

LIC had set the issue price of its shares at ₹949 each after a successful IPO, which yielded ₹20,557 crores to the government.

In the sale of shares of LIC, which took place through an offer of sale, 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 obtained the shares at a price of ₹889 and ₹904 each, 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.

Speaking at the event, LIC Chairman Mr. R. Kumar said the response for stocks in the secondary market would be higher, leading to higher prices.

“The markets are also choppy. We did not expect a very big jump.

“It (the stock price) will go up as we go forward. I’m sure a lot of people, especially the policyholders who missed the attribution, will take the stock (in the secondary market). I see no reason why it should be lukewarm for too long,” Mr Kumar told reporters.

The government has sold over 22.13 crores of shares or a 3.5% stake in LIC through the IPO.

The price range for the IPO, the largest in the country, has been set at ₹902-949 per share. LIC’s IPO, open for subscription from May 4-9, was subscribed 2.95 times.