With Rs 5.6 lakh crore market capitalisation, LIC overtakes SBI as most valued PSU. india news
In the overall league table of most valuable companies in India, LIC is now at ninth position while SBI is at tenth position. Reliance Industries tops the table with a market cap of Rs 18.4 lakh crore. LIC’s share price has surged in recent months. Since hitting a low of Rs 609 on November 22, the stock is now at Rs 887 – a gain of about 46%. In comparison, during the same period, SBI’s share price has increased by 12% from Rs 559 to now Rs 626. In Wednesday’s weak market, LIC stock opened slightly lower at Rs 883, touched an intra-day high of Rs 919 and closed at Rs 887. As soon as it crossed the Rs 904 level, retail investors and its employees had invested life. Their holdings showed gains for the first time since the insurance major’s IPO listing in mid-May 2022.
Through the IPO, the government had disinvested 3.5% in LIC for Rs 21,009 crore, making it the largest initial public offering ever in India. The shares were offered at Rs 949 per share, with select investors getting the stock at a discount. Since its listing, the stock has not crossed its IPO price. However, recently, some brokerages have come out with positive reports on the country’s largest life insurance company.
A recent report by MK Global Financial Services on LIC said that going forward, a number of headwinds will help the insurer maintain its stock value. It is expected that LIC will also regain some of its lost market share from private companies. This is also expected to keep costs under control. The report said that these two factors could help LIC shares outperform its competitors.
A recent report by MK Global Financial Services on LIC said that going forward, a number of headwinds will help the insurer maintain its stock value.
