The government owned life insurance behemoth LIC has lost ₹1.2 lakh crore ($15 billion) investor wealth in a month — since it was listed on the stock exchanges.oi77
Its market capitalization is now at ₹4.27 lakh crore – and LIC lost its position as fifth most valued company to settle at number seven.
LIC had raised ₹5,627 crore from anchor investors, with 71% of the money coming from domestic mutual funds. Anchor investors are marquee institutional investors who are allotted shares in an IPO before the issue opens.
As the entire market is witnessing selling pressure today, its stock too fell by around 5% and settled at ₹673 — 29% lower than its issue price.
“LIC’s dominant share in the single-premium group fund management business artificially inflates its market share and deflates some of its cost ratios. LIC’s commission and opex ratios are on the higher side vs. cost-efficient larger private players despite its massive scale,” said a report by Emkay in its maiden coverage which recommended ‘hold’ on the stock.
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The stock of LIC India last hit in BSE,
- Intraday High of ₹ 691.40
- Intraday low of ₹ 670.10