BusinessLIC shares jump, the trend of decline since 10 days is broken

LIC shares jump, the trend of decline since 10 days is broken

The stock of LIC has become the second largest fall in Asia after the listing. The South Korean company LG Energy Solution is at number one.

The trend of decline in LIC ‘s stock for the last 10 days was broken on Tuesday. The stock gained 2 per cent on the opening of the market. Due to this its price reached Rs 682. However, the decline in Bada moderated slightly. At 10:05, the stock was up 1.10 per cent at Rs 675.60. LIC’s stock has fallen about 28 percent since listing.

The stock of LIC has become the second largest fall in Asia after the listing. At number one is the South Korean company LG Energy Solutions. Its stock has fallen more than 30 percent since listing. On Monday, the stock had closed at Rs 668.20 on the BSE, down 5.85 per cent. Monday was the 10th consecutive day, when LIC’s stock closed in the red mark.

LIC’s market capitalization fell to Rs 4.22 lakh crore on Monday. It has been left out of the list of top companies with highest valuation in the country. It has come to the sixth position. So far, investors of this stock have lost Rs 1.7 lakh crore from the listing. The stock was listed on May 17. Its market capitalization then was Rs 6 lakh crore. Then it was the fifth largest company in the country.

LIC’s IPO opened on 3rd May. It closed on 9 May. The government had garnered Rs 21,000 crore by selling its 3.5 per cent stake in the company. Anchor investors had bought 5.93 crore shares of LIC. The company had issued shares to investors at Rs 949. Anchor investors had more domestic funds. So far they have lost more than 25 per cent.

Anchor investors from the country and abroad had invested money in LIC’s IPO. These included Government of Singapore, SBI Mutual Fund, HDFC Mutual Fund and Axis Mutual Fund. But, more investments were made by domestic mutual funds. In this issue, shares worth Rs 4000 crore were bought in 99 schemes of mutual funds.


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The policyholders of LIC had shown great interest in this issue. Policyholders’ quota was subscribed six times. The reason for this was the discount. The company had given a discount of Rs 60 per share to its policyholders. Retail investors got a discount of Rs 45 per share. Because of this, retail investors have also shown good interest in the issue.

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