Shares of LIC have fallen 35% from the listing day and nearly 40% from the IPO price of Rs 949. The Rs 2.4-lakh-crore loss in market cap since its listing on May 17, 2022 brackets LIC’s listing among the worst first-year performances by a public sector stock.
For years, LIC was speculated to be the most valuable financial institution in India, considering it was the largest in terms of assets under management. The corporation was among the most recognised brands in the financial sector and had more policyholders than the population of Brazil.
However, the moment of truth came exactly a year ago during its IPO when it turned out that, going by its upper band price, the government had valued LIC at around Rs 6 lakh crore, which was lower than many private sector companies. A year after listing, the corporation’s mcap has dipped to Rs 3.6 lakh crore — less than that of private sector companies like Bajaj Finance and Kotak Mahindra Bank, and 13th in terms of the most valuable companies in the country.
