Shares of Life Insurance Corporation of India were listed on May 17 at Rs 872 per share.

The Public Issue of Life Insurance Corporation of India (LIC) was launched with much fanfare but after an enthusiastic subscription, the shares of this insurance giant have been falling continuously.

India's biggest IPO initially received an overwhelming response and garnered more than triple subscribers, after which it was reportedly called "LIC 2.0."

It was said.

Important information related to the case:

  • LIC's stock closed at Rs 709.70 per share on BSE on Friday.

    The central government on Friday said that it is "concerned" about the fall in LIC's stock.

    However, he has described this decline as temporary.

    The government said that the insurance company management will look into these aspects and enhance the value of the shareholders.

  • Shares of Life Insurance Corporation of India were listed on May 17 at Rs 872 per share.

    The government had fixed the issue price of LIC's share at Rs 949 per share.

    Prior to this, its initial public offering (IPO) was subscribed nearly three times.

    LIC's shares have remained at a lower level than the issue price since its listing.

    It went up to a low of Rs 708.70 per share and a high of Rs 920 per share during this period.

  • Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said, “We are deeply concerned about the fall in the share price of LIC, but this decline is temporary.

    It will take time for people to understand the basics of LIC.

    LIC's management will look into all these aspects and add value to the shareholders.

  • Regarding the possibility of an increase in the stock of the insurance company, an official said that the underlying price at the end of March will give a better picture of the insurance company.

    He said, "By the end of June, new information regarding the underlying value of LIC will be available."

  • The underlying value of LIC at the end of September 2021 was over Rs 5.39 lakh crore, as per documents submitted with SEBI.

    "The market is yet to know the underlying price of March, so the market for speculation is hot," the official said.

    The future rate of growth of insurance companies can be known from this value.