LIC Hits New Record Low; Investors Lose Over ₹ 1.2 Lakh Crore: 5 Points
Shares of Life Insurance Corporation of India (LIC) have hit all-time lows repeatedly in recent days. The state-run insurer's stock plunged to a new record intraday low of ₹ 755.60 on Tuesday, falling as much as 2.80 percent on the BSE index. On NSE, LIC shares slipped 2.66 percent to trade at ₹ 756.70.
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Investors' euphoria surrounding LIC 2.0 has turned into worries since its flop debut. The market capitalization of LIC fell to around ₹ 4.79 lakh crore on Tuesday, down more than ₹ 1.2 lakh crore. At the issue price of ₹ 949, LIC's market valuation stood a little over ₹ 6 lakh crore.
Indian equity benchmarks have seen volatile moves in the past week amid worries over surging inflation and an expected interest rate hike by the Reserve Bank of India (RBI) in its policy meeting, due on June 8.
LIC shares got listed on the stock exchanges on May 17. Since its listing, the scrip has closed in the green for just four trading sessions. The stock has been falling for the past six days.
Last week, the state-run insurer posted a 17 per cent decline (yearly) in consolidated net profit at ₹ 2,410 crores for the March 2022 quarter. However, LIC's net premium income stood 17.9 percent higher at ₹ 1.4 lakh crore from ₹ 1.2 lakh crore in the corresponding quarter year ago.
Policyholders were offered a discount of ₹ 60 per equity share, while retail investors and employees received a discount of ₹ 45 on each share. LIC policyholders were allotted shares at ₹ 889 per share, while retail investors got the allotment at ₹ 905 per share.