The valuation of state-owned insurance giant Life Insurance Corporation (LIC) has fallen over ₹ 80,000 crore from its issue
Market NewsEdited by Rahul KarunakarUpdated: May 27, 2022 3:43 pm IST
LIC’s market capitalisation is down about ₹ 42,400 crore
The valuation of state-owned insurance giant Life Insurance Corporation (LIC) has fallen over ₹ 80,000 crore from its issue, with about ₹ 42,500 crore market capitalisation (m-cap) lost from its lackluster debut on May 12 and a further ₹ 38,000 crore since then.
At the issue price of ₹ 949, the market capitalisation of LIC stood at ₹ 6,00,242 crore; based on the listing price on the BSE, the valuation of LIC dipped to ₹ 5,57,675 crore, resulting in a loss of around ₹ 42,500 crore.
LIC’s m-cap after Friday’s close stood at about ₹ 5,19,630, marking a valuation loss of around ₹ 80,600 crore from the issue price and ₹ 38,045 crore loss from the discounted listing price.
On Friday, the insurance behemoth’s shares ended at ₹ 821.55, nearly 13.5 per cent lower than its issue price and a more than 5.2 per cent loss from its listing price.
Since its tepid debut, the stock has ranged between a high of ₹ 920 and a low of ₹ 801.55.
That fall in LIC’s share prices mirrors the performance of domestic equities; during a tumultuous time for global risk-asset markets, stagflation concerns have whiplashed, and capital flows into flight-to-safety bets.