MUMBAI: The stock price of LIC — the govt-run life insurance major — on Monday topped the Rs 1,000-mark for the first time since listing in May 2022. The recent stellar run in LIC’s stock price has placed the PSU major as the sixth most valued company in India with a market capitalisation of Rs 6.3 lakh crore. It is also the most valued PSU ahead of SBI, which has a market cap of Rs 5.7 lakh crore, BSE data showed.
On Monday, LIC’s stock on BSE opened at Rs 954, hit an all-time high at Rs 1,028 in intra-day trade but due to across-the-board selling in late trades, closed at Rs 1,000. In the last three and a half months, the stock has gained 64%. On Nov 21, the stock had closed at Rs 611. On Jan 17, LIC had overtaken SBI to become the most valued govt-run company.
On Monday, LIC’s stock on BSE opened at Rs 954, hit an all-time high at Rs 1,028 in intra-day trade but due to across-the-board selling in late trades, closed at Rs 1,000. In the last three and a half months, the stock has gained 64%. On Nov 21, the stock had closed at Rs 611. On Jan 17, LIC had overtaken SBI to become the most valued govt-run company.
Since going public in early-May 2022, LIC’s stock price had lingered below its offer price of Rs 949 until recently. On Jan 16, it had crossed the Rs 900 level at which mark, its employees and retail shareholders who had invested in its IPO and got the stock at a discounted price, finally were in the money. Last week, it crossed the IPO price of Rs 949.
Lately, some brokerages have come out with bullish reports on LIC, the country’s biggest life insurer. A recent report by Emkay Global Financial Services noted that going ahead, multiple tailwinds would help LIC sustain its stock price. The life insurance major is expected to regain some of its lost market share from private players. It is also expected to rein in costs.