The largest insurer LIC struggled to keep a steady pace since its market debut. Although on Friday, broadly markets turned bullish, this was not the case with Life Insurance Corporation of India (LIC). The downside in LIC did not seem to tire down as investors booked heavy profits pushing the shares to even at their new all-time lows.
In the last four trading sessions, LIC not only lost its fifth most valued company position but also, its market cap has been wiped out to the tune of more than ₹77,600 crore against the IPO issue price.
On Friday, LIC shares closed at ₹826.25 apiece down by ₹14.50 or 1.72% on BSE. The shares were near their new 52-week low of ₹825.05 apiece that was clocked earlier today.
At the closing price of Friday, LIC’s market cap stood at ₹5,22,602.94 crore. This is lower by ₹77,639.06 crore against IPO’s issue price market cap.
At the upper price band of ₹949 apiece in the IPO, LIC’s market cap stood at ₹6,00,242 crore.
LIC is listed on stock exchanges in the large-cap category. On BSE, LIC is available for trading in the list of ”A” Group Securities.
On BSE, LIC listed at a nearly 9% discount to ₹867 on May 17 against its IPO upper price band of ₹949 per equity share.
On the debut day, despite opening at a discount LIC clocked its lifetime high of ₹920 on Dalal Street, however, since then the shares have only been on a downturn. The second day did see a flattish response from investors, but the third day saw massive selling pressure in LIC shares making them dive by more than 4%. Although, on the fourth day, LIC recovered some of its previous losses but slipped by nearly 2%.
The IPO was fully subscribed by 2.95 times with massive demand from policyholders, employees, institutional, and HNIs.
