Faith of millions of Indian small investors put to test with LIC debut

The 65-year-old firm has almost $500 billion in assets, 250 million policy holders and makes up almost two-thirds of the market.

Millions of Indians investing in the country’s biggest listing could turn sour on the equity market if the stock follows the poor performance of its state-run predecessors.

Prime Minister Narendra Modi’s government raised $2.7 billion by selling shares in Life Insurance Corporation of India, including to millions of families nationwide that hold LIC policies. The stock starts trading Tuesday at a time when markets worldwide are being roiled by the fallout of Russia’s invasion of Ukraine and rising interest rates.

While deep-pocketed global funds can withstand volatility, small investors -- especially first-time shareholders such as the ones created by by LIC’s listing