You are currently viewing LIC Stocks Reach Record High, Gaining Market Valuation of $30 Billion

LIC Stocks Reach Record High, Gaining Market Valuation of $30 Billion

Over the past 10 months, the market capitalization of LIC has surged by $30 billion, and its shares experienced a 1.9 percent increase on Tuesday. The share prices of Life Insurance Corporation (LIC) of India reached record highs on the Indian stock market, marking the first time since the company went public through its initial public offering (IPO) two years ago. Investors who had acquired LIC shares during the IPO had previously faced a period of stagnant returns, making this recent surge notable as LIC share prices touched the listing price for the first time.

After two years since the LIC IPO, which marked India’s largest public offering, subscribers of the issue are now on the brink of recovering their investment in the company. This achievement is attributed to the 75 percent rally witnessed by LIC since March, according to Bloomberg. The state-owned life insurer’s stock rose by 1.9% on Tuesday, reaching its highest level since its IPO in May 2022. The upward trajectory over the past 10 months aligns with a broader surge in Indian equities, contributing around $30 billion to LIC’s market value.

LIC shares, which opened at ₹920 on January 30 following the previous day’s closing at ₹915, experienced a positive momentum this week. Supported by the stock market performance, LIC shares reached ₹933 at 3:30 pm, nearing the company’s listing price. The Indian government, led by Prime Minister Narendra Modi, achieved a record $2.7 billion through the sale of shares in LIC, involving investors, including millions of policyholder families. Concerns about LIC’s size, low-profit margins, and a rigid sales model compared to more agile private counterparts led to the stock falling more than 40% below its offering price at one point.

Read More: Click Here

Leave a Reply