LIC Shares Decline By 3.2%, Hit A Record Low At ₹681.71

Mumbai: LIC shares hit a new record low as the lock-in period for anchor investors in the country’s largest IPO ended today. While the stock opened at ₹691 a share, it touched a fresh all-time low of ₹681.71 on the BSE intraday, 3.2% down from its previous close.

This was the tenth consecutive session that the stock registered a fall. The stock has only been up for four sessions since listing or in the last twenty sessions.

With this fall, the stock is now the sixth most valuable firm and investors have assets worth around Rs 1.7 trillion since its listing. Earlier at the time of listing, it was the fifth most valuable firm in India with a market capitalization of Rs 6 trillion.

The stock was listed on May 17 with its initial share sale for around Rs 21,000 crore. Anchor investors bought 59.3 million shares of the state-run life insurance company at an issue price of Rs 949 per share. Anchor investors, most of whom were domestic mutual funds, are sitting on losses of over 25 per cent on their holdings.

Major investors participating in the IPO include the Government of Singapore, SBI Mutual Fund, HDFC Mutual Fund and Axis Mutual Fund.

Domestic mutual funds were the major buyers in the public issue, which has led to a disastrous start to life in the market. 99 schemes bought LIC shares worth Rs 4,000 crore in anchor issue.

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