LIC overtakes SBI in terms of m-cap to become the most valuable PSU; shares hit 52-week high but pare gains later

Insurance behemoth LIC's market capitalisation surpassed the Rs 5.8 lakh crore mark in the morning deals on Wednesday, January 17, after the stock hit a 52-week high of Rs 919.45 apiece but pared gains later. The state-owned insurer's m-cap exceeded that of the State Bank of India (SBI), which stood at Rs 5,59,573.17 crore as of 11:54 a.m. and became the most valued public sector undertaking (PSU).

LIC shares have gained over 26 per cent in a year, against the Nifty 50's rise of over 20 per cent. Meanwhile, SBI shares have gained over 5 per cent.

LIC shares' all-time high level stands at Rs 920. The stock was listed on the bourses on May 17, 2022, at Rs 875.25 apiece as compared to the issue price of Rs 949.

Shares of LIC traded under pressure post-listing and saw the lowest level on March 29, 2023, at Rs 530.2 apiece on BSE. However, in November, the stock recovered, and since then, it has gained around 34 per cent.

LIC shares surged 12 per cent in November and 22 per cent in December last year after Chairman Siddhartha Mohanty told PTI that he was optimistic about achieving double-digit growth in new business premiums in the financial year 2024.

Recently, Macquarie downgraded shares of LIC to 'neutral' from 'outperform' and gave a target of Rs 850 apiece.

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