LIC Shares Continue To Fall, Down 24% From Issue Price: 5 Points
Shares of Life Insurance Corporation of India (LIC), the country’s largest insurance company and largest domestic financial investor, fell for the eighth consecutive session on Thursday. The stock closed at a record low of Rs 721.95, down 2.17 per cent. It touched an all-time low of Rs 720.05 on the BSE index. LIC closed at Rs 721.60, down 2.23 per cent on the NSE. Looking at today’s closing figures, LIC has registered a decline of 23.96 percent from its issue price of Rs 949. The stock fell 14.19 per cent in eight consecutive trading days.
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The market capitalization of LIC today fell to Rs 4.57 lakh crore. In less than a month of its listing, almost a quarter of LIC’s market value has been wiped out. At the issue price of Rs 949, LIC had a market valuation of a little over Rs 6 lakh crore.
The shares of LIC got listed on the stock exchanges on 17th May. Since its listing, the stock has closed in the green for just four trading sessions.Advertisement
Last week, the state-run insurer reported a 17 per cent decline (annual) in consolidated net profit at Rs 2,410 crore for the March 2022 quarter.
However, LIC’s net premium income grew 17.9 per cent to Rs 1.4 lakh crore, from Rs 1.2 lakh crore in the same quarter a year ago.
Policyholders were offered a discount of Rs 60 per share, while retail investors and employees got a discount of Rs 45 per share. Shares were allotted to LIC policyholders at Rs 889 per share, while retail investors got allotment at Rs 905 per share.