LIC IPO Latest Update: The market cap of India’s largest insurance company Life Insurance Corporation (LIC) has decreased by $17 billion since its listing. In this way, LIC has become the biggest loss to investors since its listing across Asia this year.
Stock has fallen by 29% after listing
LIC’s stock has lost 29% since its listing on May 17. India’s largest IPO ranks second in terms of reduction in market cap since listing. This information has been given in the data compiled by Bloomberg.
According to these figures, LIC is only behind LG Energy Solution Limited of South Korea in terms of market cap decline since its IPO listing. After listing in this stock, there was a fall of up to 30%.
LIC’s IPO proved to be a flop
About a month after the listing, LIC’s $2.7 billion IPO has become the superflop public issue of this year. The reason for this is that the increase in interest rates due to inflation has affected the sentiment of the stock markets around the world. There is a lot of selling pressure by foreigners in the stock market of India. The benchmark S&P BSE Sensex has lost up to 9% this year.
Sensex breaks in 10th consecutive session
LIC’s stock saw a decline for the 10th consecutive day. The stock fell up to 5.6 per cent after the end of the lock-in period required for anchor investors on Monday. The government has also expressed concern about the fall in this stock.
As for the fall in LIC’s stock, the officials said that the company’s management will look into these aspects and work to increase the value for the shareholders.
LIC’s IPO was shown as Saudi Aramco’s IPO. The IPO of this Gulf country company was the world’s largest IPO. This was in line with Prime Minister Narendra Modi’s plan to expand the country’s capital market. This IPO had received almost three times the subscription.