LIC ends 7.8 lower, broader market closes up 2.6
LIC has 71.5 bln market value
Stateowned LIC now India39;s fifth biggest company

MUMBAI, May 17 Reuters Shares in Life Insurance Corp of India LIC slid nearly 8 in its market debut on Tuesday, a fresh setback for the stateowned giant as its recordbreaking, oversubscribed IPO raised far less than expected for the government.

India39;s biggest insurer and largest domestic financial investor closed at 875.25 rupees, compared to the IPO price of 949 rupees. LIC now has a market value of around 5.54 trillion rupees 71.54 billion and is India39;s fifthbiggest company.

The share price decline reflects weak overall market sentiment and a slump in the broader market since LIC39;s IPO opened for subscription on May 4, analysts said, even as the bluechip NSE Nifty 50 index closed up 2.6 on Tuesday.

We were not expecting a big listing as markets were jittery, expect it to pick up, LIC39;s Chairman M. R. Kumar told reporters.

The government, which had positioned the sale as the first and biggest of a wave of privatisations aimed at replenishing state coffers, raised roughly 205 billion rupees, or around 2.7 billion, from selling a 3.5 stake in India39;s largestever IPO.

That compares with a fundraising goal of around 300 billion rupees in April, that was in turn halved from earlier expectations after investors pushed back against lofty valuations. Initial government estimates had valued LIC at around 17 trillion rupees.

The…