LIC completes one year in the listed space: Heres a recap of the PSU insurance giants mega IPO
LIC shares were listed on stock exchanges NSE and BSE on May 17, 2022. The stock, following a mega IPO of the state-run life insurance giant, debuted on the bourses at a discount of eight per cent to the issue price. Heres a quick recap.
Life Insurance Corporation (LIC) shares completed one year in the secondary market on Wednesday, May 17, 2023. On this day last year, the stock of the state-run life insurance giant began trading on bourses BSE and NSE with the trading symbol LICI. At the current market price, the stock changes hands at a discount of 37-40 per cent to the price range of its mega IPO.
LIC investors have lost nearly Rs 2.5 lakh crore in wealth since the mega IPO given the insurer's market capitalisation of Rs 3.59 lakh crore, as of May 17.
Here are some of the key highlights as LIC turns one on Dalal Street:
LIC VNB margin increased
| Duration | VNB margin |
| 9MFY23 | 14.60% |
| FY22 | 15.10% |
| 1HFY22 | 9.30% |
LIC’s profit grew substantially
| Duration | Revenue | PAT |
| 9MFY23 | Rs 5.9 lakh crore | Rs 22,990 |
| FY22 | Rs 7.2 lakh crore | Rs 4,043 |
| FY21 | Rs 6.8 lakh crore | Rs 2,900 |
LIC’s Mcap/EV down from 1.1 to 0.7
| Date | Value | Mcap/IEV |
| 30 Sep 2022 | Rs 5.44 lakh crore | 0.7 |
| 31 Dec 2021 | Rs 5.40 lakh crore | 1.1 |
LIC’s steady growth in Non-PAR segment
| APE Bifurcation | ||
| Duration | PAR | Non-PAR |
| 9MFY23 | 90.60% | 9.40% |
| Q1FY23 | 92.20% | 7.80% |
| FY22 | 92.90% | 7.10% |
What brokerages make of LIC shares
Most analysts are upbeat on LIC shares, mainly on the company's strong growth outlook.
TradeSwift Director Sandeep Jain believes LIC shares look good on the technical charts and have the potential to rise.
Jain sees LIC shares touching a high at Rs 1,100-odd levels in the long term. However, he adds that overhangs such as privatisation fears may affect the growth of the stock.
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