LIC share price hits new low since market debut
LIC Share Price: Life Insurance Corporation's (LIC) share price on Monday hit a new all-time low after crashing nearly 3 per cent in today's session. While LIC share price settled at Rs 776.50 apiece on NSE after falling 2.97 per cent, it ended at Rs 777.40 on BSE after moving southward 2.86 per cent.
This is the lowest level since the listing of the state-run insurance behemoth on May 17. After today's fall, the market capitalisation of the insurer slipped below the Rs 5 lakh crore-mark, according to the BSE data. Market capitalisation is the total valuation of a company based on its share price.
With today's fall, LIC share price has slumped 17 per cent below the issue price of Rs 949.
"LIC shares have broken 800 levels after a consolidation. It can go towards Rs 770 and Rs 749 levels. Investors should avoid carrying a heavy position and rather go for buy on dips strategy," Manoj Dalmia, founder and director, Proficient Equities, said.
The shares of LIC which is the country's largest insurer had made a weak debut on the bourses. Its shares were listed at a discount of 8.11 per cent at Rs 872 per share on NSE. On BSE, the shares started trading at Rs 867.20 apiece, down 8.62 per cent from the issue price.
The government sold over 22.13 crore shares or a 3.5 per cent stake in LIC through the IPO. It fetched Rs 20,557 crore. LIC IPO was also India's largest to date. Paytm IPO in 2021 had mobilised Rs 18,300 crore, surpassing the state-owned Coal India's record of fetched nearly Rs 15,500 crore in 2010. Anil Ambani's Reliance Power had in 2008 mobilised Rs 11,700 crore through the public offer.
LIC had made it to the list of the top five most valued companies in the country with a market capitalisation of Rs 5.54 lakh crore on the day of listing, as per BSE data.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore.
READ MORE: LIC makes a weak stock market debut, lists at 8% discount
