Life Insurance Corporation made a weak market debut on Tuesday after a record-breaking initial public offering last week that was oversubscribed nearly three times. The shares were listed at Rs 872 apiece on the National Stock Exchange, 9.4% lower than its initial public offering price of Rs 949 per unit, Bloomberg reported.

On the Bombay Stock Exchange, the shares were listed at Rs 867.20 apiece, discounted by 8.62% over the issue price, PTI reported.

Retail investors and policyholders received a discount of Rs 45 and Rs 60 per share, respectively, the Economic Times reported.

The weak debut was because of unpredictable market conditions, said Department of Investment and Public Asset Management Secretary Tuhin Pandey, PTI reported. He has suggested investors to hold on to the stock for long-term value.

Life Insurance Corporation shares could perform well once the market improves, said Vinod Nair, head of research at Geojit Financial Services, according to News19. “We were expecting listing gains due to discounted valuations of LIC compared to private life insurance player,” he added.

The Initial Public Offering, or IPO, of the Life Insurance Corporation, closed on May 9 and shares were allocated to the bidders on May 12.

The government sold over 22.13 crore shares or a 3.5% stake in Life Insurance Corporation through the Initial Public Offering at a price band of Rs 902-949 a share. On May 12, the shares allocated to investors were at the upper end of the price scale.

However, foreign investor participation was muted, PTI reported.

An initial public offering is a process in which private companies offer shares to the public by issuing new stocks. At the end of the IPO process, the company gets listed on the stock exchange and is allowed to raise capital from public investors.