LIC shares hit low of 3.2% with end of anchor investor period

LIC Shares record a low price on the Bombay Stock Exchange and on National Stock Exchange on Monday, marking the end of the anchor investors’ holdings by the end of the day

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Life Insurance Corporation of India has recorded a low price for its shares at the rate of rupees 682 a piece on the Bombay Stock Exchange(BSE) on Monday as the 30-day lock-in period for anchor investors is coming to an end by today.  The anchor investors who had brought a total of 59 million shares. Also, can sell the shares by the close of the market on Monday. Selling pressures might persist for a lot of companies. Because the anchor investors might not be bounded to the company after the mandatory lock-in period is elapsed. 

According to the latest update on the LIC stocks, the stocks are failing to meet their IPO price for the tenth consecutive time. At 10 a.m. the LIC stocks were trading at a down rate of 2.89% and were listed at 689.09. But the listing had decreased even further at a rate of 3.2% and above in just half an hour and was listed at 681.71. The current listing of the LIC stock is at 676.35 on National Stock Exchange(NSE). The LIC stock is down 21.31% by the time it had listed on May 17. 

LIC shares hit low of 3.2%

An anchor investor is a qualified institutional buyer (QIB). Such as a foreign portfolio investor, mutual fund, or insurance firm. Who invests in an IPO before it is made accessible to the general public. As per Sebi laws. These are investors who have been allotted shares before the subscription opens for retail to other investors. They are liable to hold the shares until a certain period after the listing. 

The anchor investors in this regard included the Norwegian wealth fund Norges Bank Investment Management and the Singapore government. Domestic mutual fund firms including HDFC Mutual Fund, SBI, ICICI, and Kotak joined in as anchor investors who subscribed to the LIC IPO with other global funds.

Since its first public offering on the stock exchange on May 17, 2022, the LIC share price has plummeted. Investors were given LIC shares for $949 each, and they were placed on stock markets at a discount. The stock is down around 25% from its initial public offering (IPO) price of $949.

The government has also confirmed that it is worried about the dip in the price of shares of the insurance magnate. “We are very concerned about the temporary blip in LIC share price. People will take time to understand (the fundamentals of) LIC. LIC management will look into all these aspects and will raise the shareholders’ value”. Said DIPAM secretary Tuhin Kanta Pandey on LIC share prices.

LIC had recently disclosed its net profit. As well as LIC had informed about a decline of 17% to rupees 2409 crores from rupees 2917 crores in the fourth quarter ending March 2022.

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