Bhubaneswar: With the share value of Life Insurance Corporation of India (LIC) crashing by around 20% from its initial public offering (IPO), the investors have lost around Rs 1.2 lakh crore.
Tipped as biggest IPO in Indian stock market, the government had offloaded 3.5% of its stake valued at Rs 6 lakh crore. But the company’s market capitalisation has come down to around Rs 4.8 lakh crore causing the investors to lose Rs 1.2 lakh crore.
Since its listing in stock exchanges on May 17, the finance major’s share has been witnessing a steady downward movement. In fact, its share made a weak landing at a discount of 8.62% at Rs 867 from its IPO offer price of Rs 949.
On Tuesday, the shares of the insurance behemoth continued its correction mode for the sixth straight session to reach a new low of ₹755.50 for each share on NSE. The share price was quoted around 21% below its issue price.
Following market speculations for several months, the LIC had offered IPO to a robust response from investors as its shares were subscribed by 2.89 times. The company received bids for 46.77 crore equity shares against IPO of 16.2 crore equity shares. In order to attract the investors, the policyholders were offered a Rs 60 discount and retail investors Rs 45.
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