LIC Shares Surpass ₹904, Exceeding Retail IPO Price: Guidance for Investors

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LIC Shares Surpass ₹904, Exceeding Retail IPO Price: Guidance for Investors


LIC Shares Hit All-Time High, Crossing ₹904 for the First Time

On January 17, shares of Life Insurance Corporation of India Ltd. (LIC) achieved an intraday high of ₹918.45, surpassing its listing day price of ₹904. Over the past month, the stock has seen an 11% rise and an impressive 43% surge in the last six months. Additionally, LIC's shares have climbed 70% from its 52-week low of ₹530.

The company's robust performance is attributed to Chairman Siddhartha Mohanty's optimism about achieving double-digit growth in new business premiums for the financial year 2024. LIC has become India's most valuable PSU, boasting a market capitalization of ₹5.75 lakh crore, surpassing the State Bank of India's ₹5.64 lakh crore.

It's important to note that LIC operates with a low float in the market, as the government still holds a 96% stake in the company. Since its IPO in May 2022, where only a 3.5% stake was divested, LIC's shares have not re-tested its retail IPO price of ₹904 or the original IPO price of ₹949. Retail shareholders and LIC policyholders received discounts of ₹45 per share and ₹60 per share, respectively.

Deepak Shenoy of CapitalMind expressed optimism about LIC's future, predicting it to be among the top eight most profitable companies in India within the next two years. Brokerage firm Kotak Institutional Equities labeled LIC's valuation as "inexpensive" and retained a "buy" recommendation with a price target of ₹1,040.

Gaurav Bissa of InCred Equities highlighted LIC's positive trend, stating that crossing the ₹920 hurdle could propel the stock towards ₹1,100 levels. As of now, LIC shares are trading at ₹908.30, marking a 1.8% increase.

Disclaimer: Views and recommendations are from individual analysts or broking companies, not Gyaanleikh. Investors are advised to consult certified experts before making any investment decisions.

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