After tepid market debut, antsy LIC investors seek Aramco-style dividend

Some investors and analysts are concerned that the price could drop even more because of little growth prospects for the legacy business, risks of further disinvestment by the govt

Disappointed by a 7.8% plunge that made for the world’s second-worst trading debut among large IPOs this year, shareholders of state-run Life Insurance Corp. of India will be counting on a bumper dividend if Prime Minister Narendra Modi’s government wants them to stay put. 

The 65-year-old insurer, a household name in the country known as LIC, raised $2.7 billion last week in the country’s biggest initial public offering. After pricing at Rs 949 ($12.25) apiece, the top end of a marketed range, the stock plunged as much as 9.4% to Rs 860 in opening minutes on Tuesday, before paring losses. 

Some investors