Congress vs BJP as LIC shares fall nearly 40% in first year of listing | Latest News India

In the first year of trading, the shares of Life Insurance Corporation (LIC), India’s leading insurer, have experienced a significant decline of approximately 40 per cent from their initial issue price. This downturn has resulted in investors losing a staggering ₹1.93 lakh crore, thus depleting their wealth.

The Congress on Wednesday was quick to hit out at the Narendra Modi government over the fall in the company’s market capitalisation. Senior Congress leader Jairam Ramesh sought to link the decline in the market cap of the firm to the investment in Adani companies, a charge rejected by the Bharatiya Janata Party, which accused him of misleading people with “half information”.

“Exactly a year ago today, LIC was listed in the stock market. Its market capitalisation then stood at ₹5.48 lakh crore. Today, this is down to ₹3.59 lakh crore a fall of a whopping 35%!” Ramesh tweeted.

“There is only one reason for this steep fall Modani. In the process, lakhs and lakhs of policyholders have taken a serious hit,” he added, tagging a screenshot of a media report which claimed that LIC share has wiped out ₹1.9 lakh crore since listing,” he added.

Hitting back at Ramesh, BJP IT-cell head Amit Malviya said the LIC’s exposure in Adani Group is less than 1 per cent.

“LIC has bagged multi-crore profit on Adani stocks. There is no risk to policyholders says LIC Chief. Jairam Ramesh, who is known for leaking privileged correspondence to media, to embarrass then PM Manmohan Singh, in whose cabinet he was a minister, is once again misleading people by peddling half information…,” Malviya tweeted and shared a media report that quoted the LIC chief.

The Congress has been attacking the government over the fall in the value of LIC’s holdings in the Adani Group and had asked who “forced” this pillar of India’s financial system to take such a risky exposure to the conglomerate.

The Congress has been demanding a Joint Parliamentary Committee (JPC) probe into the allegations against the Adani Group by US-based short-seller Hindenburg Research. The Adani Group has dismissed the allegations as baseless.

LIC struggles to attract investors

The LIC has been the among worst performers of newly listed companies, as the country’s biggest initial public offering struggles to attract investors.

LIC had listed at over 8 per cent discount on May 17 last year after a successful Initial Public Offering (IPO) which fetched ₹20,557 crore to the exchequer. Shares of LIC had listed at ₹872 on the BSE and at ₹867.20 on the NSE.

The stock of LIC is down 39.92 per cent as against the issue price of ₹949 on the BSE.

On the NSE, it has tumbled 39.93 per cent from the issue price.

On Wednesday, LIC shares ended with a gain of 0.48 per cent at ₹570.10 on the BSE. On the NSE, shares of the firm ended at ₹570, an increase of 0.44 per cent.

(With inputs from agencies)