LIC's stock has witnessed a remarkable surge of 45% in the past two months, nearing its IPO price, bringing a sense of satisfaction to its policyholders. Initially offered at Rs 949 per share during its IPO, policyholders secured them at Rs 889, while retail shareholders and employees paid Rs 904. Presently, the stock has reached the Rs 900 mark on BSE, marking a positive turn for investors, especially policyholders.
Since its listing 20 months ago, LIC's stock performance has been on an upward trajectory. Despite the initial offering price, policyholders now find themselves in a marginally profitable position. The recent surge in the stock's value has positioned retail investors and employees for potential profits if the current trend continues.
With a current market value of Rs 5.6 lakh crore, LIC stands as the 10th most valued company in India and the second most valued government-run enterprise, following SBI with a market value of Rs 5.7 lakh crore, according to BSE data.
Comparatively, among companies listed in 2022, LIC and Delhivery are notable, with the latter still trading 16% below its IPO price at Rs 410. In contrast, several companies that went public in the same year have delivered strong returns to investors, including Global Health (up 198%), Sula Vineyards (up 77%), and Adani Wilmar (up 57%).
Analysts have also expressed positive sentiments regarding LIC's stock. A recent report by Emkay Global Financial Services anticipates sustained share price outperformance for LIC, citing multiple favorable factors. The broking house has accordingly revised its target price for LIC to Rs 975, contributing to the growing optimism surrounding the insurance major's stock.
