On Thursday, shares of Life Insurance Corporation of India (LIC), the country’s largest insurer and domestic financial investor, fell for the eighth consecutive session. The stock dropped 2.17 percent to close at a new all-time low of 721.95. On the BSE index, it hit an all-time intraday low of 720.05. LIC closed at 721.60 on the NSE, up 2.23 percent. LIC has dropped 23.96 percent from its issue price of 949 to today’s closing price. In the last eight trading days, the stock has down 14.19 percent.
The market capitalization of LIC has dropped to 4.57 lakh crore today. LIC’s market value has been wiped away in less than a month since its initial public offering. The market value of LIC was just over 6 lakh crore at the issue price of 949.
On May 17, LIC shares were launched on stock exchanges. Only four trading sessions have ended in the green since the script was listed.
The state-run insurer reported a 17 percent (yearly) drop in total net profit for the March 2022 quarter, coming in at Rs 2,410 crore. LIC’s net premium income, on the other hand, increased 17.9% to 1.4 lakh crore from 1.2 lakh crore in the previous quarter.
Policyholders received a 60 percent discount on equity shares, while retail investors and employees received a 45 percent discount. LIC policyholders received shares at a price of 889 per share, while retail investors received shares at a price of 905 per share.