').insertAfter(".article-content__img");$(".article-content__img div").find('div').remove();
In A Month, LIC Stock Down 15%, Out Of Top 10 In Market Capitalisation
The state-owned insurer's market value is now down Rs 2.4 trillion, or 40 per cent, compared to initial public offering levels
Topics
LIC | Adani Group
Shares of Life Insurance Corporation (LIC) of India hit fresh record lows on Monday amid sustained decline in Adani Group stocks. Its stock finished at Rs 567.8, down 2.9 per cent over its previous close.
The state-owned insurer’s market value is now down Rs 2.4 trillion, or 40 per cent, compared to initial public offering levels.
In the past month, shares of LIC have plunged 15 per cent — the most among mega caps. LIC’s market capitalisation ranking has now slipped to 12, from 6 at the time of listing.
Even though Adani Group stocks account for less than 1 per cent of LIC’s equity portfolio, the market has severely battered its stock. As on January 31, LIC’s equity and debt holding in Adani scrips stood at a little less than Rs 36,000 crore. The value of its equity purchase was Rs 30,127 crore. After a precipitous fall in Adani shares, the value of its holdings slipped below the cost of acquisition, stoking concern.
Analysts say investors are worried about the impact on LIC’s business due to the negative sentiment created by its exposure to Adani Group. Besides, there is a constant overhang of misuse of LIC as a white knight for government disinvestment.
Currently, the government holds a 96.5 per cent stake in the insurance behemoth and close to 2 per cent in retail. Overseas funds hold just 0.17 per cent. Hence, LIC’s value erosion is hurting the exchequer and citizens more than anyone else.
Subscribe to Business Standard Premium
Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!
First Published: Mon, February 27 2023. 22:15 IST
RECENT NEWS
JPMorgan's Berlin Moment: Chase Takes On Europe
There is something quietly symbolic about JPMorgan Chase choosing Berlin as its gateway into continental Europe. In a fo... Read more
What Strategy's Bitcoin Sale Really Tells Us
There is a moment in every bull run when the narrative starts to fray. Not with a crash, not with a scandal, but with so... Read more
Coutts Sets Scope On New Continent
Coutts steps into private marketsCoutts, the private bank best known for serving Britain’s wealthiest families and the... Read more
From Cypherpunk To Citadel
How Crypto Moved from the Wild West to the Mainstream Financial SystemA long-form analysis of Bitcoin's journey from fri... Read more
ACB Securities: Building Scale, Trust & Innovation
ACB Securities: Building Scale, Trust and Innovation in Vietnam’s Capital MarketsACB Securities (ACBS) is emerging as ... Read more
War Risk Returns To Markets As VIX Surges
For most of the past year, global markets behaved as though geopolitical risk had largely disappeared. Inflation was eas... Read more