LIC’s Flop Show Continues, Shares Hit New Low, Valuation Dives: 5 Points

LIC Flop Show Continues, Shares Hit New Low, Valuation Dives: 5 Points

Given today’s closing figure, LIC is down 18.08 percent from its issue price of Rs 949.

New Delhi:
Shares of Life Insurance Corporation of India (LIC), the country’s largest insurer and largest domestic financial investor, fell 2.86 percent, reaching a low of Rs 777.40. The stock hit an all-day low of Rs 775.40 on the BSE index. On NSE, LIC cracked 2.97 percent to close at 776.50. Given today’s closing figure, LIC is down 18.08 percent from its issue price of Rs 949.

Here’s your 5-point cheat sheet for this big story:

  1. The slump has dragged the market cap of LIC below Rs 5 lakh crore for the first time. LIC’s market cap dropped to Rs 4.91 lakh crore on Monday. At the issue price of Rs 949, the market value of LIC was just over Rs 6 lakh crore.

  2. LIC shares were listed on the stock exchanges on 17 May. Since listing, the scrip has been in the green for only four trading sessions.

  3. Last week, the state-run insurer recorded a 17 percent (annual) decline in consolidated net profit of Rs 2,410 crore for the March 2022 quarter.

  4. However, LIC net inflows were 17.9 percent higher at Rs 1.4 lakh crore from Rs 1.2 lakh crore in the corresponding quarter year ago.

  5. Policyholders were given a discount of Rs 60 per share, while retail investors and employees were given a discount of Rs 45 on each share. LIC policyholders were allocated shares at Rs 889 per share while retail investors were allocated at Rs 905 per share.

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