New Delhi: Share price of Life Insurance Corporation of India (LIC) fell to a new record low of Rs 720.10 on Thursday, nearly 25 per cent lower than its IPO issue price of Rs 949. On the BSE, the stock of Life Insurance Corporation of India was trading 1.56 per cent lower at Rs 726.50 at 12.42 pm as against the previous day’s closing price of Rs 738. The stock traded at a record low of Rs 723.70 in intra-day. LIC’s share price has fallen sharply since its listing on the stock exchange on May 17.
The shares of LIC were allotted to the investors at Rs 949 per share. It was listed on the stock exchange at a discount. The highest level it has touched is Rs 920.
There has been a steady decline in the market value of the country’s largest insurance company.
The market capitalization of Life Insurance Corporation of India (LIC) at the issue price of Rs 949 was Rs 6,00,242 crore.
On Thursday, the market capitalization of LIC declined to around Rs 4.6 lakh crore. Less than a month after listing, almost one-fourth of LIC’s market value has been wiped out. The stock has closed in positive four sessions since listing.
The selling pressure continued for the rest of the day. Open for subscription from May 4 to May 9, LIC’s initial public offering was subscribed 2.95 times. The government-run LIC is by far the largest insurer in India.
LIC had a market share of 74.60 per cent in individual policies for the financial year ended March 31, 2022. LIC’s market share in the group business was 89.07 per cent by the number of policies/schemes and 76.16 per cent during the year ended March 31, 2022. Percentage of first year premium. Read also: Bank Holidays: Branches to remain closed from June 11 to 15, check important dates
LIC’s market share in the overall first year premium income was 63.25 per cent at the end of March 31, 2022. Read also: Rupee at new record low against US dollar