Home / Markets / Stock Markets /  LIC investors lose 1.43 lakh crore after listing. Is there more pain ahead?
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LIC share price: After having a discounted listing on NSE and BSE on 17th May 2022, LIC shares have remained under sell-off pressure and has been making record lows on regular basis. On Thursday session, LIC share price made a new low of 720.10 apiece levels on NSE, losing around 24 per cent from upper price band of the LIC IPO. In this continuous slide, LIC's market cap has dipped from 6 lakh crore to around 4.57 lakh crore, which means LIC investors have lost around 1.43 lakh crore in less than one month of LIC share listing.

According to stock market experts, there can be more sell-off taking place in LIC shares as one month of anchor investors' login is about to end in next one month. So, anchor investors are expected to exit once their lock-in ends. Apart from this, they said that FIIs are still on the 'net sellers' side', which means they might continue to ignore LIC shares as they have done since the launch of LIC IPO. Experts went on to add that LIC's Q4 results are also not encouraging and the company is expected to continue report tepid quarterly numbers in next 2-3 quarters. They also maintained that weak secondary market sentiments since the launch of LIC IPO has also done major damage to the LIC investors' money.

On why LIC share price is nosediving continuously, Anuj Gupta, Vice President — Research at IIFL Securities said, "During LIC share allocation, most of the retail investors have been allotted shares and hence fresh retail buying is not taking place in Life Insurance shares. And hence both FIIs and DIIs have failed to gain any confidence in regard to LIC shares. On chart pattern, LIC shares are still looking weak and it may go up to 680 levels in near term." The weak stock market sentiment is also a major reason for LIC shares not able to make its bottom even after three weeks of listing.

Speaking on LIC share price outlook, Saurabh Jain, Vice President — Research at SMC Global Securities said, "Weakness in LIC shares may further continue as one month login for anchor investors is ending in next one week and there might be mass sell-off taking place in the LIC shares as and when this lock-in ends. The insurance titan has failed to boost sentiment of market investors in its Q4FY22 results and it is expected to continue delivering tepid quarterly numbers in next 2-3 quarters."

LIC shares made a dull debut on BSE and NSE on 17th May 2022 as it listed at around 8 per cent discount from its upper price band of 949 per equity share. It listed on NSE at 872 apiece levels whereas it made a discounted debut on BSE at 867 per share levels. Share market experts had said that weak listing of LIC shares were due to the weak market sentiments and that sentiment is still persisting.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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