Investors lose Rs 1.2 turnover as LIC shares tumble 20% below the issue price

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Since the exchange listing, The shares of the LIC are tumbling, causing heavy depreciation in their portfolios, leading to a bad experience for those invested who put their money in the IPO.

On May 17, the most awaited shares of LIC made a weekly list on the stock exchange by listing a discount of 8.62 percent at Rs 867, from its IPO issue price of Rs 949. Currently, the share price is all time down to Rs 756, which is a decline of little over 20 percent from its issue price.

Secondly, the government had offloaded 3.5 percent of its stake through the IPO route, which valued LIC at Rs 6 lakh crore. At this time, the company’s market capitalization was at around Rs 4.8 lakh crore, which essentially means the investors have lost worth Rs 1.2 lakh crore recently.

Also read: 10 things you should know about Updated Income Tax Return filing New ITR-U

It is noted that the initial public offer of the company received 2.89 times the subscription indicating a robust response from investors. The bid of 46.77 crore equity shares was received against the size of 16.2 crore equity shares of the IPO. The consolidated income statement of LIC showed that net premium income during the quarter rose nearly 18 percent to Rs 1,44,158 lakh crore.

In hunger to attract a large number of investors, LIC offered Rs 60 discount, while for retail investors, the discount was Rs 45 to its policyholders. They also told that after prior approval of owners in AGM, a dividend of Rs 1.50 per equity share for FY22 could be raised. Well, this is the only first earnings result reported by the company after it went public on the exchanges.

News Team

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