Since the listing, the market value of Life Insurance Corporation (LIC) has come down by a whopping $17 billion. With this, it has become one of the top IPOs in Asia to sink investors’ wealth.
LIC’s shares were listed on the stock exchanges on May 17 and since then they have fallen by about 29 per cent. With this, it has now become the second largest IPO in Asia to sink investors’ wealth, according to Bloomberg. At number one is South Korea’s LG Energy Solutions Ltd, whose market capitalization has fallen by more than 30 per cent since the IPO listing this year.
LIC’s IPO size was $2.7 billion, which is the largest ever IPO size in India. However, about a month after the listing, LIC has now joined Asia’s most flop IPO. One reason behind this is heavy selling in the stock markets.
The Indian stock market has been under pressure this year due to increase in interest rates by the central bank, rising inflation across the world and selling by foreign investors. The Bombay Stock Exchange (BSE) benchmark index Sensex (Sensex) has fallen up to 9 per cent this year.
LIC shares fell for the 10th consecutive day
LIC shares continued to decline for the 10th consecutive day on Monday. On Monday, the company’s stock fell about six percent more. The company’s stock closed at Rs 668.20 per share, down 5.85% on the BSE.
During the day’s trading, it had fallen by 6% to Rs 666.90 per share. On the same National Stock Exchange (NSE), the company’s stock closed down by 5.66% at Rs 669.50 per share.
LIC shares continue to fall for the last ten days. During this, the company’s stock fell by 20.17%. The government had fixed the IPO price of LIC at Rs 949. Since the listing, LIC’s stock has fallen by 29.58 percent to Rs 668.20 so far.