LIC stock slips 4% as anchor book lock-in period ends today

Shares of Life Insurance Corporation (LIC) fell to their record low amid a market crash today as the lock-in period for anchor investors in the country's largest initial public offering (IPO) ended today. Sentiments around the stock were also weak as the equity market tanked in early trade today. LIC stock declined 3.94 per cent intraday to Rs 681.70 against the previous close of Rs 709.70 on BSE.

The market capitalisation of the public sector insurer fell to Rs 4.35 lakh crore today against a market cap of Rs 4.49 lakh crore in the previous session. On NSE, the stock was trading 2.28 per cent lower at Rs 689.70 at 9:53 am. It fell 3.90 per cent intraday to Rs 682.

Market cap of the firm fell to Rs 4,35,792 crore on NSE.

The lock-in period which ended on June 13, allows anchor investors to sell their shares in the market. The state-owned insurer had collected a little over Rs 5,627 crore from anchor investors led primarily by domestic institutions ahead of its mega initial public offering (IPO).

The portion reserved for anchor investors (5,92,96,853 equity shares) was subscribed at Rs 949 per equity share. Domestic insurance companies and pension funds had participated in the anchor issue.

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Some of the prominent names in this category included ICICI Prudential Life Insurance, SBI Life Insurance, Kotak Mahindra Life Insurance, PNB Metlife Insurance, SBI Pension Fund and UTI Retirement Solutions Pension Fund Scheme.

Foreign participation included the Government of Singapore, Monetary Authority of Singapore, Government Pension Fund Global, and BNP Investment LLP.

The stock has fallen 21.39 per cent or Rs 185.5 from its listing price after three weeks of market debut. The share made a tepid market debut on May 17, opening at a discount of 8.62 per cent against the IPO issue price. The company offered its stock in a price band of Rs 902- Rs 949. It was listed at Rs 867.20 on BSE.

On NSE, the stock is listed at Rs 872, 8.11 per cent lower than the IPO price.

Meanwhile, the government on Friday said it was "concerned" about the temporary blip in LIC stock and the insurer's management will look into these aspects and raise shareholders' value.

"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.

Sensex crashed 1,460 points to 52,843 and Nifty lost 417 points to 15,784 in early trade today in line with weak global cues.