InvestorQ : How much have people actually lost money in the LIC IPO?
swati Bakhda made post

How much have people actually lost money in the LIC IPO?

Sam Eswaran answered.
8 months ago

The amount is humongous. Since listing, the shareholders of LIC have collectively lost close to $17 billion. In Indian rupees, this is a capital loss of Rs130,000 crore. That is the amount of wealth wiped out from the market cap of LIC since the IPO. The government may have sold a much lower stake and at much lower valuations. However, that does not change the fact that the losses are done and dusted.

Let us now look at the magnitude of the fall. IPO price was Rs949 per share while the stock is currently trading at Rs668.25. That is a capital loss of nearly 29.6% with their investment vanish into thin air. Retail investors and policyholders would be better off as they have been allotted shares at discounted prices of Rs904 and Rs889 respectively. Now, the value investor is jittery as is the trader. The stock is trading at a deep discount..

LIC is now the second biggest wealth destroyers. In value terms, the deal is second only to LG Energy Solutions of Korea. While LIC saw $17 billion market value depreciation since the IPO, LG Energy is worse off with nearly $22 billion of wealth sold out. In short, people have lost mountains of money on the LIC IPO and it is not year clear who has gained.