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Shares of India’s Life Insurance Corporation (LIC) rose 1.9 per cent on the Indian stock market on Tuesday, hitting record prices for the first time since the company launched its initial public offering (IPO) two years ago.
LIC investors had faced a lull in returns after pocketing shares of the company during the initial public offering, but this is the first time that LIC share prices have touched the listing price of the company. company.
This means that after two years of LIC’s IPO, which was India’s largest public offering, the issue’s subscribers are now close to recovering their investment in the company. This is all thanks to the 75 percent rally that LIC has witnessed since March, Bloomberg reported.
Shares of the state-owned life insurer rose 1.9% on Tuesday, to close at their highest level since its initial public offering in May 2022. The rise over the past 10 months has coincided with a broader rise in Indian shares which has added about $30 billion to LIC’s market value. .
LIC shares opened in $920 on January 30 after closing at $915 the day before. Buoyed by the stock market performance this week, LIC shares closed at $933 at 3:30 p.m., finally close to the company’s listing price.
Prime Minister Narendra Modi’s government raised a record $2.7 billion by selling shares in the country’s largest life insurance company to investors including millions of families who own the company’s policies. Concerns about LIC’s size, low profit margins and rigid sales model compared to its more agile private peers saw the stock at one point fall more than 40% below its offer price.
Sensex, Nifty on Tuesday
LIC saw a big boom today after the stock remained stagnant, as the stock market in India surged on Monday, gaining 1200 points. However, BSE Sensex saw a significant decline on Tuesday, closing over 800 points lower than the previous day.
While Sensex saw a big boom yesterday, the BSE benchmark index fell over 1 per cent due to selling in Reliance Industries, ITC and Bajaj Finance on Tuesday, January 30.
The 30-share BSE Sensex fell 801.67 points or 1.11 per cent to settle at 71,139.90. During the day, it plunged 865.85 points or 1.20 percent to 71,075.72. The Nifty was down 215.50 points or 0.99 per cent at 21,522.10.
Among Sensex companies, Bajaj Finance fell 5.03 per cent after its December quarter earnings failed to cheer investors.
(With input from PTI)