LIC Shares Smash Through ₹1,000 Mark for the First Time

5 Feb 2024 , 03:04 PM

Shares of Life Insurance Corporation (LIC), India’s largest life insurer, reached a significant milestone in the trading session by crossing the ₹1,000 mark for the first time, touching a new peak of ₹1,028 per share with an 8.8% gain.

After a subdued performance post-listing, LIC shares witnessed a notable upswing in November, closing the month with a substantial gain of 12.83%. This positive trend continued into the following months, recording an impressive rise of 22.52% in December and 14% in January.

On January 23, the company’s shares surpassed the IPO price of ₹949 per share, marking a significant milestone post-listing. Since then, the stock has consistently maintained its upward momentum, achieving fresh record highs. This sustained surge has proven to be rewarding for early investors who have held their positions since the listing.

Listed on Indian stock exchanges on May 17, 2022, at ₹875.25 apiece compared to the issue price of ₹949, LIC’s market capitalization surged to ₹6.50 lakh crore, making it the sixth-largest listed company in India and the leading among government-listed PSU companies.

In December, the government granted a one-time exemption to LIC to meet the required 25% minimum public shareholding (MPS) within 10 years, extending the deadline from the original target of 2027.

As of the end of Q3 FY24, the government held a 96.5% stake in the company, while retail investors and domestic institutional investors held 2.4% and 1% stakes, respectively. LIC is scheduled to announce its Q3 FY24 earnings on February 9, 2024. For H1FY24, the company reported a net profit of ₹17,469 crore, compared to ₹16,635 crore in the same period a year ago.

In H1FY24, LIC’s new business premium (individual) increased 2.65% to ₹25,184 crore, and the assets under management (AUM) rose to ₹47,43,389 crore, registering a 10.47% year-on-year increase. At noon, the stock was trading with a gain of 6.57% at ₹1,006.80 per share.