In a significant market development, the stock price surge of the Life Insurance Corporation of India (LIC) on Wednesday propelled it ahead of the State Bank of India (SBI) as the most valued government-run company in the country. BSE data at the close of the trading day revealed that LIC's market capitalization reached Rs 5.61 lakh crore, outpacing SBI's Rs 5.59 lakh crore.
This accomplishment positions LIC at the ninth spot in the overall league table of the most valued companies in India, with Reliance Industries leading the pack with a substantial market cap of Rs 18.4 lakh crore. The recent months have witnessed a remarkable rally in LIC's stock price, surging from its November 22 low of Rs 609 to the current Rs 887, reflecting a noteworthy gain of nearly 46%. In contrast, during the same period, SBI's stock price increased by 12%, from Rs 559 to Rs 626.
Despite a slightly lower opening at Rs 883 in Wednesday's subdued market, LIC's stock exhibited resilience by reaching an intra-day high of Rs 919 before closing at Rs 887. Crossing the Rs 904 mark proved significant for retail investors and employees who had invested in LIC's IPO, witnessing profitable returns for the first time since its listing in mid-May 2022.
LIC's initial public offering (IPO) marked a historic divestment move by the government, raising Rs 21,009 crore by offloading 3.5% of its stake. Although the IPO stocks were offered at Rs 949 per share, the market price had not surpassed this value since listing. However, recent bullish reports by brokerages, including one by Emkay Global Financial Services, suggest positive prospects for LIC's stock. The report anticipates multiple favorable factors, including the insurer regaining market share from private players and implementing cost-cutting measures, contributing to sustained stock performance.
