New Delhi: Life Insurance Corp. shares of India (LIC) continued their downtrend to close the day on Wednesday at Rs 738.00 apiece, down 14.90 points or 1.98 percent.
Following the listing on May 17, LIC’s share value has fallen 14.8 percent from the listing price of Rs.867 per share, which in turn represents a discount of 8.6 percent from the IPO price of Rs.949 per share. On Wednesday, the scrip was down 22.2 percent from its IPO price.
The company’s market capitalization (mcap) shrank to Rs 4.67 trillion on Wednesday.
The company hit its lowest price of Rs753.35 a piece on Tuesday.
According to brokerage firm Emkay Global, the insurer’s embedded value has inherent volatility as it lacks diversity in terms of product offering. The company also has a small digital footprint, Emkay said.
Embedded value is the sum of an insurer’s net asset value and the present value of its future earnings.
However, LIC is currently India’s sixth largest company by market capitalization.
In the March quarter of FY22, LIC reported standalone net income of Rs.2.37 trillion, down 18 percent year-on-year.
The company announced a dividend of Rs 1.50 per share and reported up 18% and premium income of Rs 1.43 trillion for the March quarter.
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