LIC Outlook: The government is worried about the fall in LIC’s shares.
LIC Outlook: LIC shares fell for the 9th consecutive day today and today it has closed on BSE at a price of Rs 709.70. It is at a discount of around 25 per cent against the issue price of Rs 949. Now the government is also worried about this. However, he has described this decline as temporary. Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said that the management of LIC will look into these aspects and enhance the value of shareholders.
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LIC shares could not even reach the issue price
When the record size IPO of the country’s largest life insurance company LIC was listed, it was listed at a discount compared to the issue price on the very first day. Since then, it has not even reached close to the issue price and is showing heavy selling pressure. Its shares were listed at a discount of about 9 per cent against the issue price of Rs 949. Although there was some bullish trend in it, but could only reach the price of Rs 920. So far it has also touched a low of Rs 708.70 per share.
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Anchor investors are under pressure from lock-in period
The lock-in period of anchor investors is believed to be one of the reasons for the sell-off in LIC shares for the 9th consecutive day. For anchor investors, the IPO opens a day before, but they cannot earn profits by selling shares on the day of listing. Instead they have to wait for 30 days and in case of LIC, this period ends on 13th June i.e. on Monday next week. After that they will be able to sell the shares. During the IPO, the valuation of LIC was estimated at 6 lakh crores, but now due to the fall in the shares, it has come down to only 4.50 lakh crores i.e. till now the investors of LIC have suffered a setback of 1.50 lakh crores.
(Input: PTI)
