One year, LIC's stock became a big question, investors lost Rs 2.5 lakh crore - Newztezz Online


Wednesday, May 17, 2023

One year, LIC's stock became a big question, investors lost Rs 2.5 lakh crore

On May 17, 2022, the country's largest insurance company LIC was listed in the market, since then investors have suffered a loss of Rs 2.5 lakh crore. Also, about 7 lakh investors have exited from it.

A year ago, on today's date i.e. 17th May, the country's biggest IPO was listed in the market. This IPO was of the country's largest insurance company LIC. At present, this IPO has become the biggest question. There is no bigger flop IPO in this one year. Because of which investors have suffered a loss of Rs 2.5 lakh crore. LIC's stock is currently trading below 40 per cent from its issue price of Rs 949. This is the reason why investors have suffered huge losses. For this reason, the company is currently not present in the list of top 10 or top 15 in terms of market value.

FII and MF reduced stake

Life Insurance Corporation of India is the company that has lost the most market cap in the last one year. This is the reason that both mutual funds and FIIs have reduced their stake. The March shareholding pattern shows that mutual fund holding in LIC decreased from 0.66 per cent in December to 0.63 per cent in March. FII holding was also 0.17 per cent in the third quarter, which came down to 0.08 per cent in the fourth quarter. At the same time, retail investors have increased their stake and their stake has increased from 1.92 percent to 2.04 percent.

The number of retail investors decreased

Even though there has been an increase in the share of retail investors, but there has been a significant decline in the presence of retail investors in LIC. At the time of IPO, LIC had 39.89 lakh retail investors. The shareholding pattern for the March quarter shows that the number of retail investors in LIC has now come down to around 33 lakhs, a loss of 6.87 lakh investors in a year. This behavior of retail investors shows that many small investors are trying to average their losses in LIC in the hope that someday its shares will start rising.

Country's biggest IPO

LIC's IPO was important for the country in many ways. Its size was 21 thousand crore rupees. Never before had such a big IPO come. At the same time, the kind of penetration of LIC in the whole country, LIC IPO was considered a milestone event and it seemed that it would take the market to new heights and reduce the fall of last year, but it did not happen. Not done. At the same time, the market expected from this IPO that the bumper success of the IPO could attract investors towards the market.

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