LIC shares plunge below Rs 675, down over 30% from their issue price
The LIC stock hit a new intra-day low of Rs 673 and was the last trading at Rs 673.70, down more than 5 per cent from Friday's record low close of Rs 709.70.
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FollowThe stock of Life Insurance Corporation plunged below $675 per share on Monday, mirroring broader equities benchmarks' declines as roaring global inflation and predictions of aggressive Fed tightening weighed on investor sentiment.
The LIC stock hit a new intra-day low of Rs 673 and was the last trading at Rs 673.70, down more than 5 per cent from Friday's record low close of Rs 709.70.
The stock is down by 29 per cent from its issue price of Rs 949 per share, despite the government saying it is "concerned" about the temporary dip in LIC's scrip and that the insurer's management will look into these aspects and raise shareholders' value.
"We are particularly concerned about the LIC share price's recent dip. People will take their time learning (the basics of) LIC. All of these factors would be investigated by LIC management to increase shareholder value," Tuhin Kanta Pandey, DIPAM secretary, stated on Friday.
On May 17, LIC shares were listed on the public exchanges for Rs 872, a significant discount from their issue price.
The scrip has only finished in the green for four trading sessions since its flop debut on the stock exchanges, and it has remained below the issue price, striking a new low of Rs 672.90 on Monday and a high of Rs 920 a few days after its listing.
On Monday, the market capitalization (m-cap) of the country's largest insurer and domestic financial investor fell to Rs 4.3 lakh crore. Since it was listed, Rs 1.7 lakh crore has been lost in less than a month. The company's m-cap was just over Rs 6 lakh crore at the issue price of Rs 949.
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Also Read:Â LIC lists on BSE 8.62% lower than IPO allotted price of Rs 949
Also Read:Â LIC IPO update: Govt raises Rs 20,560 crore, shares to be listed on May 17
Also Read:Â LIC IPO: Supreme Court refuses to stay allotment
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