The valuation of the state insurance giant Life Insurance Corporation (LIC) has fallen by more than Rs 80,000 crore from the issuance, with about Rs 42,500 crore market capitalization (m-cap) lost from its lackluster debut on May 12 and another Rs 38,000 crore from then on moment.
At the issue price of Rs 949, the market cap of LIC was Rs 6,00,242 crore; based on the listing on the BSE, the valuation of LIC fell to Rs 5,57,675 crore resulting in a loss of approximately Rs 42,500 crore.
LIC’s m-cap after Friday’s close was about Rs 5,19,630, representing a valuation loss of about Rs 80,600 crore from the issue price and Rs 38,045 crore loss from the discounted quote price.
On Friday, shares of the insurance giant finished at Rs 821.55, nearly 13.5 percent below the issue price and a loss of more than 5.2 percent from the listing price.
Since its lukewarm debut, the stock has fluctuated between a high of Rs 920 and a low of Rs 801.55.
That decline in LIC stock prices reflects the performance of domestic stocks; at a tumultuous time for global risk asset markets, concerns about stagflation have increased and capital is flowing for flights to safety.