With a flat debut, Life Insurance Corporation of India eroded over 42,500 crore in investor wealth, as a weak listing resulted in its market capitalisation slipping to Rs 5.57 crore in early trade, according to a report in a national daily.
The LIC stock was listed at Rs 867 on the BSE, which is 8.64 percent discount to its IPO price of Rs 949.
LIC has finally been listed on the exchanges and is currently trading 5 percent below its issue price of Rs. 949 per share. However, Retail and LIC policyholders have received a discount of Rs. 45 and Rs. 60 respectively to the issue price and are marginally in the money.
Yash Gupta- Equity Research Analyst, Angel One Ltd. said, At current prices, LIC is trading at a P/EV (embedded value) of 1.08x which is at a significant discount to other listed private life insurance companies like HDFC Life, ICICI Pru Life, and SBI Life. As expected given the adverse market conditions listing has been muted for LIC. However, cheap valuations as compared to other listed players offer comfort, and investors with a longer time horizon can hold on to their positions while retail traders with a short-term view can exit their positions in case there is any upside movement over the next few days, he added.
(With inputs from agencies)