"LIC 2.0," a euphoric subscription, but a downhill from there
- LIC shares extended their fall for the ninth session in a row and closed on Friday at Rs 709.70, down over 25 per cent from the issue price of Rs 949. The stock tumbled 1.7 per cent to settle at a record closing low of Rs 709.70. It touched an all-time intraday low of ₹ 708.70 on the BSE index.
- The government on Friday said it is "concerned" about the temporary blip in LIC's scrip, and the insurer's management will look into these aspects and raise shareholders' value.
- LIC shares were listed on the stock exchanges on May 17 at a deep discount of Rs 872. Since its flop debut on the stock exchanges, the scrip has closed in the green for just four trading sessions. Indeed, since that poor listing day, LIC shares have remained below the issue price and had touched a low of Rs 708.70 and a high of Rs 920.
- "We are very concerned about the temporary blip in LIC share price. People will take time to understand (the fundamentals of) LIC. LIC management will look into all these aspects and raise the shareholders' value," DIPAM secretary Tuhin Kanta Pandey said.
- The country's biggest insurer and the largest domestic financial investor's market capitalisation (m-cap) fell to Rs 4.5 lakh crore on Friday. In less than one month of its listing, over a quarter of its value, or Rs 1.5 lakh crore, has been wiped out. At the issue price of Rs 949, the company's m-cap stood slightly over Rs 6 lakh crore.
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