LIC cheated investors overnight, Rs 2.40 lakh crore sunk in a year

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LIC Share Price: Exactly a year ago, on 17th May 2022, the public sector insurance company LIC was listed on the stock exchange in the biggest IPO in the history of the Indian stock market. Investors had invested in LIC’s IPO thinking that they would get good returns. But this IPO proved to be a huge disappointment for the investors. LIC’s stock is trading 40 percent below the IPO price after one year.

LIC’s in share of 40% decline

Exactly one year ago in May 2022, LIC raised Rs 20557 crore from the market through IPO. The company allotted shares to investors at Rs 949 per share. But just a year after listing, the stock fell 40 per cent to Rs. 569 are being traded. The market capitalization of the company as per the IPO price is Rs 100 crore. 6 lakh crore, which fell to Rs. 3.60 lakh crore has been done. That is, after listing, the market cap of the company is Rs 10,000. 2.40 lakh crores have decreased.

in terms of market cap 5th From 13th At the place

When LIC listed on the stock exchange on 17 May 2022, it became the fifth largest company in the country in terms of market capitalization. But after a huge fall in share prices, LIC has now slipped to 13th position. The market capitalization declined by Rs 47,000 crore on the first day of listing in the stock market. The opposition is also attacking the government for the decline in LIC shares. Congress’s Rajya Sabha MP and communications in-charge Jairam Ramesh tweeted that lakhs of policyholders have suffered huge losses in this entire process.

mutual funds and FII has reduced investment

The central government holds 96.5 per cent stake in LIC. Given the shareholding pattern, mutual funds have reduced their exposure to LIC shares. The share of mutual funds has come down to 0.63 per cent from the June 2022 quarter. However, retail investors increased their holdings. Their share has increased from 1.88 per cent to 2.04 per cent. But their number has come down from 39.89 lakh to 33 lakh. That is, 6.87 lakh retail investors have decreased in one year. The stake of foreign investors has also come down from 0.12 per cent in June 2022 to 0.08 per cent.