LIC Share Price: The stock of LIC, the country’s largest insurance company, has come down to its lowest level since its listing on the stock exchange. On Monday, February 27, 2023, the stock fell by around 3 percent and slipped to Rs.566. At the close of the market, the stock closed at Rs 567.75, down 2.88 per cent or Rs 16.85. This is the lowest closing price level of LIC.
40 percent loss to investors
Ever since the issue of LIC’s exposure in Adani Group’s shares came to the fore, since then LIC’s stock has been witnessing weakness. LIC’s stock has now fallen 40 percent below its IPO price. The investors who had invested in LIC’s IPO are now facing huge losses. LIC raised money in the IPO at a price of Rs 949 per share.
Why LIC share is falling
Hindenburg’s report was released on 24 January 2023, on that day LIC’s share was trading at Rs.702. But from that level the stock has now fallen by around 19.30 per cent. Due to the report, the stocks of Adani Group are falling in the same way. And the value of LIC’s investment in Adani Group’s shares used to be Rs 82000 crore. The value of LIC’s investment has declined by around Rs 50,000 crore. LIC had bought stocks worth Rs 30,127 crore from different Adani group companies. That is, the profit that LIC was getting on investing in the stock of Adani Group is almost on the verge of happening.
LIC’s stake in Adani group companies
According to BSE data, LIC holds 4.23 per cent stake in Adani Enterprises, 3.65 per cent in Adani Transmission, 5.96 per cent in Adani Total Gas and 1.28 per cent in Adani Green Energy. LIC also has exposure in cement companies of Adani group. SIC holds 6.33 per cent stake in Ambija Cement and 6.41 per cent in ACC. LIC holds 9.14 per cent stake in Adani Ports. Or the data is till 31st December 2020.
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