LIC Shares Surpass Issue Price as Stake Increase in HDFC Bank Approved

31 Jan 2024 , 11:50 AM

LIC’s share price surpassed its issue price for the first time on January 30 after receiving permission to increase its stake in HDFC Bank.

The initial public offering (IPO) of LIC had an issue price ranging between ₹902 and ₹949 per share. It was listed at ₹867 on the National Stock Exchange in May 2022.

Following the IPO, LIC shares experienced a 26 % decline until November of the previous year. However, a significant turnaround occurred post-November, with LIC shares gaining 55 % in just two months.

HDFC Bank disclosed that LIC was permitted by the central bank to acquire a 9.99 % stake in the bank by January 24, 2025. As of Q3FY24, LIC held a 5.19 % stake with 34 Crore HDFC Bank shares. With approval, LIC can acquire an additional 4.8 % stake.

LIC’s net profit in Q2FY24 declined by 50 % year-on-year to ₹7,925 Crore. The change in accounting policy in September 2022 affected the comparability of YoY profit figures.

For feedback and suggestions, write to us at [e-mail]