LIC investors become poorer by whopping Rs 1.78 lakh crore in a month

The stock closed the Monday session at a record low of Rs 668.20 on the BSE, down 5.85 per cent from its previous close.

Published: 14th June 2022 07:50 AM  |   Last Updated: 14th June 2022 07:50 AM   |  A+A-

Image used for representational purpose only. (File Photo)

Image used for representational purpose only. (File Photo)

Express News Service

NEW DELHI: In less than a month since listing on the stock exchanges, Life Insurance Corporation of India (LIC) has made investors poorer by a whopping Rs 1.78 lakh crore as its market capitalisation (m-cap) came down to Rs 4,22,636 crore on Monday against an m-cap of Rs 6,00,242 crore based on the upper end of its IPO price (`949).

Due to its sheer size, LIC has eroded more wealth than one of the biggest IPO duds of recent times- One97 Communications (Paytm) whose m-cap is down by nearly 1.02 lakh crore since going public in November 2021.  The share prices of India’s largest insurer hit a fresh record low on Monday after the lock-in period for anchor investors in the company’s IPO came to an end on June 13 and benchmark indexes - Sensex and Nifty- fell sharply due to relentless selling by foreign investors amidst weak global cues. 

The stock closed the Monday session at a record low of Rs 668.20 on the BSE, down 5.85% from its previous close. This was its biggest single-day fall and the tenth consecutive session when the stock traded lower. The fall in LIC continues even as the government, LIC’s biggest stakeholder, showed concern over its falling share prices. India’s disinvestment secretary Tuhin Kanta Pandey said on Friday that the LIC management would do everything possible to increase shareholders’ value.

“We are concerned about a temporary blip in LIC share prices. LIC management will look into the issue and discuss shareholders’ benefits. Investors have lost money in LIC immediately due to temporary demand and supply. We need a wide range of investors who stay invested in LIC looking at its strong fundamentals,” Pandey said.


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