LIC beats SBI in market cap; share price crosses IPO level

The Life Insurance Corporation of India (LIC) on Wednesday (January 17) achieved a historic milestone on the stock market by reaching a share price of ₹900. This is a first-time record since its listing in May 2022.

When LIC shares were initially listed on May 17, 2022, they were priced at ₹875.25 each, compared to the pre-listing issue price of ₹949. However, the company's shares faced a decline, hitting a low of ₹530.

In November 2023, there was an upswing with LIC shares experiencing a 12% increase. This positive trend continued in December with a 22.52% rise and a 7.51% spike in the first two weeks of January 2024. This surge in share prices raised LIC's market capitalisation to over ₹5.66 lakh crore, witnessing a ₹1.83 lakh crore increase in the last three months.

Currently, the stock is only 6.21% below its IPO price of ₹949. Despite LIC surpassing the State Bank of India (SBI) in market capitalisation, early market indications suggest that SBI could regain the top spot soon.

While LIC has become the most valued state-run company in India, surpassing SBI by a slight margin, there has been a considerable loss in investor wealth. For the first time since being listed, LIC's stock prices have now attained a level comparable to the initial issue price, trading at a loss for almost two years. Although LIC shares have surpassed the listing price, they remain below the IPO price.

It's worth mentioning that LIC's initial public offering (IPO) remains the largest in India to date, where the government sold shares worth ₹21,000 crore to raise funds. The government still holds a 96.5% stake in the company.