Share price of Life Insurance Corporation of India (LIC) slumped to a record low of Rs 782.45 on Monday, which is 17.55 per cent down from its IPO issue price of Rs 949.
At 1.27 pm on the BSE, Life Insurance Corporation of India's share was trading 2.01 per cent down at Rs 784.15.
Earlier, the scrip opened flat at Rs 800.25 but witnessed selling pressure later in the day. It slipped to a low of Rs 782.45 in the intra-day. This is the lowest level since its listing on the stock exchanges last month.
LIC share is trading in the red for the fifth straight session. The scrip has slumped by around 6 per cent in the last five sessions. The decline in LIC share is far sharper than the general decline in the market. During this period the benchmark Sensex of the BSE has lost less than 1 per cent.
The recent slump has dragged Life Insurance Corporation of India's market capitalisation below Rs 5 lakh crore for the first time. The market capitalisation of LIC fell to Rs 4.98 lakh crore on Monday.
At the issue price of Rs 949 the market capitalisation of Life Insurance Corporation (LIC) of India stood at Rs 6,00,242 crore.
The initial public offering of LIC, which was open for subscription from May 4 to May 9, was subscribed 2.95 times.
Life Insurance Corporation of India shares got listed on the stock exchanges on May 17. Since its listing, the scrip has closed in the positive four sessions. For the rest of the days, it witnessed selling pressure.
The country's largest insurer LIC had set its price band for the Initial Public Offer (IPO) at Rs 902 to Rs 949 per equity share. As the IPO was fully subscribed the issue price stood at Rs 949 per share. Policyholders were offered a discount of Rs 60 per equity share, while retail investors and employees received a discount of Rs 45 on each share.
While retail investors got the allotment at Rs 905 per share, LIC's policyholders were allotted shares at Rs 889 per share.