LIC Sinks 5 Per Cent As Anchor Investor Lock-In Period Ends Today

LIC's share price is down 28 per cent from its issue price of Rs 949 per share

Amid market mayhem on Monday, shares of Life Insurance Corporation of India (LIC) dropped over 5 per cent to Rs 671 on the BSE in intra-day trade. The lock-in period for LIC’s anchor investors is ending on Monday (June 13).

The state-run insurance firm’s share price is down 28 per cent from its issue price of Rs 949 per share. Retail investors were allotted shares at Rs 905 apiece, whereas policyholders received allotment at Rs 889 per share at the time of the initial public offering (IPO).

The LIC stock traded at its lowest level since market debut on May 17, 2022. It declined for the 10th straight trading day and has slipped 19 per cent.

At 12.45 pm, LIC was trading at Rs 671, down 5.43 per cent on the BSE.

Since listing, the company has lost Rs 1.2 lakh crore market capitalisation.

In the IPO, LIC had raised Rs 5,627 crore from anchor investors, with 71 per cent of the amount coming from domestic mutual funds (MFs). Overall, the state-owned insurance giant allotted nearly 59.3 million shares to 123 investors at Rs 949 apiece.

Anchor investors hold close to 1 per cent of the 3.5 per cent free float of LIC.

According to analysts, the private sector insurance companies in India have been growing faster than LIC and gaining market share, with no assurance that LIC will not lose further market share.

Analysts at Emkay Global Financial Services initiated coverage on LIC with a ‘hold’ rating and target price of Rs 875 – up around 12 per cent from current levels.