Uninsured Stock

The LIC stock is bleeding-it is down nearly 30 per cent from its issue price, even as other life insurers surge. Can it bounce back?

- ASHISH RUKHAIYAR

THE LISTING OF Life Insurance Corporation of India, or LIC, on May 17 was a momentous occasion for the Indian stock markets. Since then, the benchmark S&P BSE Sensex has lost a little over 5 per cent, while the LIC stock is down nearly 30 per cent from its issue price of ₹949.

Policyholders and employees of the insurance major, in which the government still owns 96.5 per cent, can take solace in the fact that they were allotted shares at a discount of ₹60 from the issue price. But, if they still hold those shares, then nearly one-fourth of their wealth has already been wiped off.