The Finance Ministry on Monday expressed grave concern over the share price of Life Insurance Corporation (LIC) after it hit record low amid overall market crash on weak global cues and worries of India's upcoming retail inflation data for the month of May.
Shares LIC was trading 5.47 per cent lower at Rs 670.90 apiece on BSE during late trading hours as the lock-in period for anchor investors in the country's largest initial public offering (IPO) ended today. Sentiments around the stock were also weak as the equity market tanked in early trade.
LIC is a valuable asset and investor panic is distressing, according to Finance Ministry sources.
Meanwhile, LIC's market capitalisation fell to Rs 4.35 lakh crore today against a market cap of Rs 4.49 lakh crore in the previous session.
On NSE, the stock was trading 5.40 per cent lower at Rs 671.35 during late trade hours.
The lock-in period, which ended on June 13, allows anchor investors to sell their shares in the market. The state-owned insurer had collected a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions ahead of its mega initial public offering (IPO).
The portion reserved for anchor investors (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share. Domestic insurance companies and pension funds had participated in the anchor issue.
Some of the prominent names in this category included ICICI Prudential Life Insurance, SBI Life Insurance, Kotak Mahindra Life Insurance, PNB Metlife Insurance, SBI Pension Fund and UTI Retirement Solutions Pension Fund Scheme.
Foreign participation included the Government of Singapore, Monetary Authority of Singapore, Government Pension Fund Global, and BNP Investment LLP.
The stock has fallen 21.39 per cent or Rs 185.5 from its listing price after three weeks of market debut.
The share made a tepid market debut on May 17, opening at a discount of 8.62 per cent against the IPO issue price. The company offered its stock in a price band of Rs 902- Rs 949. It was listed at Rs 867.20 on BSE.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.
Its product portfolio comprises 32 individual plans (16 participating and 16 non-participating) and seven individual optional rider benefits. The insurer's group product portfolio comprises 11 group products.
(With inputs from Karishma Asoodani and Aseem Thapliyal)
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today