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LIC shares rise 4% but stock is still down 19% from listing price

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LIC shares rise 4% but stock is still down 19% from listing price

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LIC share price: Shares of Life Insurance Corporation of India (LIC) rose as much as 4 percent on Tuesday despite disappointing earnings on an on-quarter basis. Looking at the current market price, the scrip is around 19 percent away from its listing price.


Shares of Life Insurance Corporation of India (LIC) rose as much as 4 percent on Tuesday despite disappointing earnings on an on-quarter basis. However, at the current market price, the scrip is around 19 percent away from its listing price.
At 10:23 am, shares of LIC were trading 3.2 percent higher at Rs 703.85 on the BSE.
LIC had made a lukewarm debut on the Indian bourses on May 17, 2022. On BSE, LIC shares had listed at Rs 867.2 apiece, a discount of Rs 81.8 or 8.6 percent to the upper end of its issue price range of Rs 902-949 apiece.
On a consolidated basis, LIC’s revenue was down at 1,69,601 crore as compared to previous quarter’s Rs 2,12,230 crore. While net profit crashed 75 percent on quarter to Rs 603 crore.
Value of new business (VNB) — the profit margin a life insurance company makes on new business — for the quarter stood at Rs 1,861 crore and VNB margin came dropped to 13.6 percent from previous quarter’s 16 percent.
Further, market share also declined by 2.10 percent and was at 65.42 percent for April-June.
Here's what the management told CNBC-TV18:
The company’s management said that the first quarter is always a slow start for the insurance industry and that a change in product mix affected the margin.
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