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

06 Jun 2022, 04:11 PM IST

Considering today's closing figure, LIC has plunged 18.08 per cent from its issue price of Rs 949.

The slump has dragged LIC's market capitalisation below Rs 5 lakh crore for the first time. The market capitalisation of LIC fell to Rs 4.91 lakh crore on Monday. At the issue price of Rs 949, LIC's market valuation stood a little over Rs 6 lakh crore.
LIC shares got listed on the stock exchanges on May 17. Since its listing, the scrip has closed in the green for just four trading sessions.
Last week, the state-run insurer posted a 17 per cent decline (yearly) in consolidated net profit at Rs 2,410 crore for the March 2022 quarter.
However, LIC's net premium income stood 17.9 per cent higher at Rs 1.4 lakh crore from Rs 1.2 lakh crore in the corresponding quarter year ago.
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. LIC policyholders were allotted shares at Rs 889 per share, while retail investors got the allotment at Rs 905 per share.