1 Year Since LIC's IPO: Investors In India's Biggest IPO Have Already Lost ?2.4 Lakh Crore
Today marks the completion of one year since India¡¯s biggest IPO, LIC, rolled out. On May 17, 2022, the insurance giant went public through its much-anticipated IPO. But right from the day of listing until today, it's been a disappointing ride for LIC¡¯s investors. Shares of LIC are down nearly 35% in the last year and down nearly 20% this year to date.
Mega IPO, mega loss. This seems to be an apt description of how India's biggest IPO has performed in the last year.
Today marks the completion of one year since India¡¯s biggest IPO, LIC, rolled out. On May 17, 2022, the insurance giant went public through its much anticipated IPO. But right from the day of listing until today, it's been a disappointing ride for LIC¡¯s investors.
How LIC Has Performed In 1 Year Since IPO
Shares of LIC are down nearly 35% in the last year and down nearly 20% this year to date.
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And that¡¯s not all. The fall in its market cap has also made the investors¡¯ pockets bleed. LIC¡¯s market cap has dropped ?2.4 lakh crore in the last one year, from ?6 trillion on the date of the IPO to the current market cap of ?3.6 trillion.
In the last one year since its IPO, LIC has till date witnessed its all-time low of ?530.20 (on March 29, 2023, as per BSE), while its all-time high still remains the day of its IPO, at ?920 on May 17, 2022. LIC shares are currently trading at ?568 (at the time of writing this report).
LIC's Financial Results & Change In Leadership
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While LIC's IPO has so far disappointed investors, its financial results have been relatively strong in recent quarters. The insurance giant had recently undergone a leadership change as well, with the government appointing Siddhartha Mohanty as LIC's chairman in March 2023, replacing the outgoing chairman, M.R. Kumar.
In February 2021, Mohanty became LIC's managing director. He began his career at LIC as a direct recruit officer in 1985 and reportedly gained experience in various departments, including marketing, HR, investments, legal, and personnel. Before taking over as MD of LIC, he was MD and CEO of LIC Housing Finance.
In the third quarter (Oct.¨CDec. 2022), LIC posted multi-fold growth in consolidated net profit at ?8,334 crore. Its gross premium income had risen 14.6% YoY to 1.12 lakh crore, driven by a 31.2% YoY increase in single premium, a 10.8% rise in first-year premium, and a 5.9% uptick in renewal premium.
LIC is expected to declare its financial results for Q4 (January¨CMarch 2023) next week on May 24th. "A meeting of the Board of Directors of the Corporation is scheduled to be held on May 24th, 2023, to consider and approve the Audited Financial Results (standalone and consolidated) for the quarter and year ended on March 31 2023," the insurance giant said in a filing, as per ET report.
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