- LIC shares fall for 9th straight day
- Worse for other insurance companies
Shares of Life Insurance Corporation of India (LIC) have been falling since the day of listing. LIC’s IPO listing took place on May 17. So far, the stock has lost around 30% of its issue price. Now investors are nervous. Their only question is this and how much will it drop? However, no one can answer this question at this time. But no one even expected LIC shares to drop 30% in just 25 days.
In fact, LIC is the largest insurance company in the country, LIC policyholders are in every home. That’s why LIC’s insurers also invested money in the large-scale LIC IPO, they were confident that there would be no loss. Because the business is profitable and shareholders will benefit. But that didn’t happen.
How to trust insurance companies?
Now investors want to know where will LIC stock stop? If you invested thinking it’s a government insurance company, it won’t drop much, then you can see the status of other government insurance companies.
When you look at the shares of General Insurance Corporation (GIC) and New India Assurance Company, the picture is clear. Both are also public insurance companies. But if you look at the price from the listing of their IPO until now, you will be bound to think that what has cheated investors.
General Insurance Company (CPG): The IPO of GIC took place in October 2017. At that time, the IPO price range was fixed between Rs 855-912. Right now, that is June 13, the stock is trading at Rs 114.80. You can estimate the loss from the fact that the Rs 912 share fell to Rs 114.80.
New Indian Insurance Company: The IPO of New India Assurance Company took place the following month i.e. November 2017 after the launch of the IPO of GIC. Whose price range was set between Rs 770 to Rs 800. The IPO itself received a very cold response. Now the stock has fallen to Rs 91 in 5 years. In other words, the share fell from its issue price of Rs 800 to Rs 91. Assess the loss yourself, how much havoc government insurance companies have wreaked on investors.
LIC investors are panicking
These two public insurance companies have given investors a hard blow in 5 years. Investors who invested in the company’s IPO lost around 90% of their capital. It should be noted that the price range of LIC’s IPO was between Rs 902 and Rs 949, and within 25 days the stock fell to Rs 678. In such a situation, it is very difficult to speculate on LIC shares at the moment.
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