LIC slips 5.8% as anchor investor lock-in ends; down 29% from issue price

Shares of Life Insurance Corporation of India (LIC) slipped 5.85 per cent further to Rs 668.20  apiece on the BSE on Monday — the day lock-in period for anchor investors expired.  The state-owned insurance behemoth’s share price is down 29.59 per cent from its issue price of Rs 949 per share.  

An eye-popping $17 billion wipeout in market value has made LIC one of the biggest wealth destroyers among Asia’s initial public offerings this year. India’s biggest-ever IPO now ranks second in terms of market capitalisation loss since listing, according to the data compiled by Bloomberg. The drop puts it just behind South Korea’s LG Energy Solution, which saw a more than 30 per cent peak-to-trough decline in its share price after an initial spike on debut.

LIC’s stock traded at its lowest level since market debut on May 17, 2022. 

LIC had raised Rs 5,627 crore from anchor investors, with 71 per cent of the amount coming from domestic MFs. Overall, the state-owned insurance giant allotted nearly 59.3 million shares to 123 investors at Rs 949 apiece. At the time of the IPO, retail investors were alloted shares at Rs 905 apiece; policyholders received allottment at Rs 889 per share.

Anchor investors are marquee institutional investors who are allotted shares in a company ahead of its IPO. The end of lock-in period will allow anchor investors to sell their existing shares in the market.