LIC is India’s largest insurance company and it was one of the largest IPOs which was subscribed 2.95 times its amount of shares allocated. But it has struggled since its listing on the stock exchange.
The company’s market cap has been reduced to ₹5.11 lakh crores from a market cap of ₹5.99 lakh crores from its issue. The retail investors have lost 14.96% of their investment as the issue price for them was ₹ 949, Employees of the company have lost 10.60% of their investment as the issue price for them was ₹ 904 and Policyholders have lost 9.11% of their investment as the issue price for them was ₹ 889 on their allotment of shares, as per the current date.
The Company has tumbled to become the 7th most valued company with ICICI Bank overtaking the 6th spot.
The share is currently trading at ₹ 807.60 and is down by 0.31% on the BSE. It is currently trading at ₹807.95 and is down by 0.30% on the NSE.
During the March quarter of 2022, the company reported a consolidated net sales of ₹2,12,097.95 crores which is an 11.63% increase compared to the corresponding quarter of 2021.
Although the company reported an increase in the revenue, its net profit was reported at ₹438.13 crores which is a decline of 83% COmpared to the March quarter of last year.
The company had mark-to-market losses of ₹6,028 crores on its books relating to debt investments in certain pension and group schemes, which were to be accounted for in its income statement. The company is confident of resolving the debt investments in time.
The IRDAI has asked LIC to certify the value of the loss-making investments reflected in its income statement by 31 January 2023.
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