In the overall league table of most valued companies in India, LIC is now at the ninth place while SBI stands at the tenth. The table is led by Reliance Industries with a market cap of Rs 18.4 lakh crore. In recent months LIC’s stock price has been on a roll. Since its November 22 low of Rs 609, the stock is now at Rs 887 — a gain of nearly 46%. In comparison, during the same period, SBI’s stock price has gained 12% from Rs 559 to Rs 626 now. In Wednesday’s weak market, the LIC stock opened slightly lower at Rs 883, hit an intra-day high at Rs 919 and closed at Rs 887. As it crossed the Rs 904-mark, retail investors and its employees who had invested in the life insurance major’s IPO, saw their holdings show profit for the first time since its listing in mid-May 2022.
Through the IPO, the government had divested 3.5% in LIC for Rs 21,009 crore, making it the biggest maiden offer in India ever. The stocks were offered at Rs 949 per share, with a select set of investors getting the stocks at discounts. Since listing, the stock has not crossed its IPO price. However, lately, some brokerages have come out with bullish reports on the country’s biggest life insurer.
A recent report on LIC by Emkay Global Financial Services noted that going ahead, multiple tailwinds would help the insurer sustain its stock price. LIC is expected to regain some of its lost market share from private players, too. It’s also expected to rein in costs. The two factors could help LIC’s stock outperform its peers, the report said.
A recent report on LIC by Emkay Global Financial Services noted that going ahead, multiple tailwinds would help the insurer sustain its stock price.
