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LIC Investors : One year of LIC’s listing, stock trading 40% below IPO price, investors lost Rs 2.40 lakh crore

LIC Stock Performance: After the LIC listing on 17 May 2022, it was the 5th largest company in the country, which has now slipped to the 13th position.

LIC Share Price: Exactly one year before today, on 17 May 2022, the listing of the public sector insurance company LIC, which brought the biggest IPO in the history of the Indian stock market, was done on the stock exchange. Investors had invested in LIC’s IPO thinking that they would get good profits. But this IPO has proved to be very disappointing for the investors. LIC’s stock is trading 40% below its IPO price after one year.

LIC share trading down 40%

Exactly one year ago in May 2022, LIC raised Rs 20557 crore from the market through IPO. The company allotted shares to investors at a price of Rs 949 per share. But exactly one year after listing on the stock, the stock is trading at Rs 569, down 40 per cent. According to the IPO price, the market capitalization of the company was close to Rs 6 lakh crore, which has come down to Rs 3.60 lakh crore. That is, since the listing, there has been a dent in the market cap of the company by Rs 2.40 lakh crore.

Rolled from 5th to 13th in terms of market cap

When LIC was listed on the stock exchange on 17 May 2022, it became the fifth largest company in the country in terms of market capitalisation. But after a huge fall in the stock price, LIC has now slipped to the 13th position. On the very first day of listing on the stock exchange, there was a dent in the market capitalization of Rs 47000 crore. The opposition is also attacking the government on the fall in LIC’s stock. Congress’s Rajya Sabha MP and Communication Incharge Jairam Ramesh tweeted that lakhs of policyholders have suffered huge losses in this entire process.

Mutual funds and FII reduced investment 

The central government holds 96.5 per cent stake in LIC. Looking at the shareholding pattern, mutual funds have reduced their investment in LIC stock. The share of mutual funds has come down from the June 2022 quarter to 0.63 per cent now. However, retail investors have increased their stake. Their share has increased from 1.88 per cent to 2.04 per cent. But their number has come down from 39.89 lakh to 33 lakh. Means 6.87 lakh retail investors have decreased in one year. The stake of foreign investors has also come down from 0.12 per cent to 0.08 per cent in June 2022.



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