Milestone unlocked: LIC shares soar beyond Rs 1,000

In an exhilarating turn of events, Life Insurance Corporation (LIC), India’s leading life insurer, has shattered expectations by surpassing the Rs 1,000 milestone for the first time in today’s trading session. With a remarkable surge of 8.8%, LIC shares reached a new pinnacle at Rs 1,028 apiece, marking a historic moment for investors and the company alike.

Momentum

After a somewhat subdued performance post-listing in May 2022 at Rs 875.25 per share, LIC shares experienced a transformative journey. November saw a notable upswing with a substantial gain of 12.83%, followed by an impressive 22.52% rise in December and a solid 14% climb in January. The positive trend not only revitalized investor confidence but also laid the foundation for a remarkable trajectory.

Exceeding IPO Price: A Turning Point

On January 23, LIC shares surpassed the IPO price of Rs 949 per share, symbolizing a significant milestone post-listing. Since then, the stock has consistently maintained its upward momentum, setting new record highs and proving to be a lucrative venture for early investors who held steadfast since the listing.

Market Capitalisation Soars

As of today’s surge, LIC’s market capitalization has skyrocketed to Rs 6.50 lakh crore, securing its position as the sixth-largest listed company in India and the foremost among government-listed PSU companies. This surge reflects the company’s resilience and the growing confidence of investors in its potential.

Government’s Strategic Move

In a strategic move in December, the government granted LIC a one-time exemption to achieve the required 25% minimum public shareholding (MPS) within 10 years, extending the original deadline of 2027. The government currently holds a 96.5% stake in the company, while retail investors and domestic institutional investors each hold 2.4% and 1% stake, respectively.

Financial Performance Highlights

LIC is set to announce its Q3 FY24 earnings on February 09, 2024. For H1FY24, the company reported a net profit of Rs 17,469 crore, showcasing a notable growth from Rs 16,635 crore in the same period a year ago. The new business premium (individual) for H1FY24 witnessed a 2.65% jump to Rs 25,184 crore, emphasizing the sustained demand for LIC’s offerings. The assets under management (AUM) also witnessed a substantial increase, reaching Rs 47,43,389 crore in H1FY24, reflecting a robust year-on-year growth of 10.47%.

Current Market Dynamics

At noon, LIC shares were trading at Rs 1,000.45 apiece, indicating a gain of 5.82%. This midday surge underscores the ongoing positive sentiment in the market and the continued attractiveness of LIC as an investment option.

Closing Thoughts

LIC’s journey from its listing in May 2022 to its current status as a market powerhouse is nothing short of remarkable. Breaking records, exceeding expectations, and winning the confidence of investors, the company stands as a testament to the resilience of India’s insurance sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.