lic: LIC at fresh low before anchor lock-in ends


MUMBAI: The LIC stock hit a fresh low of Rs 708. 7 intraday on the BSE on Friday, which also pulled its market capitalisation to below the Rs 4. 5lakh-crore mark as fears mounted about further selling by anchor investors next week. By close, with an mcap of just under Rs 4. 49 lakh crore, LIC’s shareholders had lost more than Rs 1. 5 lakh crore in less than a month since its listing on May 17.
According to Sebi’s rules for anchor investments in IPOs, the investors had to hold the shares for at least one month since allotment in the offer, which was on May 13. So, this lock-in period of anchor shares will be over on June 13.
In Friday’s session, the stock opened at Rs 715, touched the all-time low and closed at Rs 709. 7. LIC has now lost a little over 25% from its final IPO price of Rs 949. LIC’s policyholders had got the shares at a per-share discount of Rs 60, while for retail investors the discount was Rs 45.
A day before its IPO opened on May 4, LIC had allotted shares worth Rs 5,627 crore to a large number of domestic investors like mutual funds and insurance companies, and to some foreign funds. The shares were allotted at Rs 949, the final IPO price. Over 70% of LIC’s anchor investors were domestic mutual funds.


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