LIC is now India’s most valuable state-run company

Life Insurance Corporation of India (LIC) witnessed a meteoric rise in its stock value, surging by 9.5% to reach an unprecedented all-time peak of Rs 1,144 on the Bombay Stock Exchange (BSE).

This surge comes just a day after Prime Minister Narendra Modi lauded LIC’s success openly in the Rajya Sabha, highlighting its significant achievements and contributions to the Indian economy.

Record market capitalization

Following this surge, LIC’s market capitalization soared to cross the monumental Rs 7 lakh crore mark, positioning itself as India’s fourth-largest stock. This remarkable feat was achieved by surpassing industry giants such as ICICI Bank and Infosys, solidifying LIC’s stature as a powerhouse in the Indian financial landscape.

Board meeting to review earnings and dividend

The momentum doesn’t seem to be slowing down for LIC, as the company’s board is set to convene later today to review its earnings for the December quarter and discuss the possibility of declaring an interim dividend. This anticipated move is expected to further bolster investor confidence and drive continued growth in LIC’s stock value.

India’s most valuable state-run company

With this unprecedented surge, LIC has not only solidified its position as India’s premier insurance provider but has also emerged as the country’s most valuable state-run company. Surpassing even the State Bank of India, LIC’s remarkable ascent underscores its resilience and strategic vision in navigating the complexities of the financial market.

Government’s strategic decision

The surge in LIC’s stock value comes in the wake of a strategic decision by the government, granting the company a one-time exemption to achieve the required 25% minimum public shareholding (MPS) within a shorter timeframe. Originally mandated to meet this requirement by 2027, LIC now has the flexibility to expedite its efforts, reflecting the government’s confidence in the company’s growth trajectory.

Stakeholder composition

As of the end of Q3 FY24, the government retained a dominant 96.5% stake in LIC, with retail investors and domestic institutional investors holding 2.4% and 1% stakes, respectively. This diverse stakeholder composition underscores LIC’s broad-based appeal and its ability to attract investment from various segments of the market.

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