LIC slips for 8th straight day on muted growth, down 24% from issue price

LIC's inability to move up in the customer segment by significantly changing its product and distribution mix means that the insurer will continue to lose market share.

LIC
BS Reporter Mumbai
1 min read Last Updated : Jun 10 2022 | 12:38 AM IST
Shares of Life Insurance Corporation of India (LIC) continue to reel under pressure and hit a new low to end at Rs 721.95, down 2.17  per cent,  on the BSE in Thursday’s trade after the insurance behemoth reported a muted growth in the month of May.

The stock of state-owned insurer quoted lower for the eight straight trading day, and has declined 14 per cent during the period. 

The stock now trades at the lowest level since its debut on May 17, 2022.

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With the recent decline, the stock now quotes at a significant 24 per cent discount when compared with its issue price of Rs 949 per share. 

At the time of the IPO, retail investors were allotment shares at Rs 905 apiece, while policyholders received allottment at Rs 889 per share.

LIC is the only public sector life insurance company in India and primary competitors are private life insurance companies in India.

Private sector insurance companies have been growing faster than LIC and gaining market share. There is no assurance that LIC will not lose further market share, according to analysts.

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Topics :Buzzing stocksLife Insurance Corporation of India LICMarket trendsLIC IPOInsurance stocksS&P BSE Sensex

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