The Indian Government is concerned about the dip in LIC’s share price. It was quoted as a temporary blip but investors are still doubtful.
The Life Insurance Corporation (LIC), shares dropped to a new low on Friday. This is the ninth time consecutively that the price has declined. During the Initial Price Offer (IPO) the company had listed its shares for ₹949 a piece. Since then the share price has dropped around 25 percent and has always been below the issue price. On Friday it hit ₹710 a piece, having a decline rate of 1.62 percent. The market capital has also reduced to ₹4.52 lakh crore from ₹6 lakh crore.
Officials stated their concern about this temporary blip, and the management will look into it and as a result, will increase the shareholder’s value. Currently, shareholders have lost around one-fourth of their share in the company. After the fall in market capital, shareholders’ loss was estimated at ₹1.4 lakh. Since the listing, the share price was recorded lowest at ₹708.70 apiece and highest at ₹920 apiece.
About LIC
Life Insurance Corporation (LIC) is one of the largest insurance providers in the country. It is owned and handled by the Government of India and was established in 1956. In May 2022 the company announced its public IPO offer. It was listed at ₹949 and was oversubscribed by nearly three times. It was one of the biggest IPOs in history. But surprisingly enough it is not going well. Investors and shareholders are disappointed with the continuous decline in share price. The Government has shown its concern multiple times and is making decisions to cope with the market fall. In nineteen trading sessions, the average decline was estimated at around 1.9 percent.
The market will open again on Monday, and shareholders are waiting to see the performance this week. Though the officials stated that the shareholders’ value would be raised, no action has been seen yet.
