LIC share price today: Life Insurance Corporation of India (LIC) has surpassed State Bank of India (SBI) in terms of market capitalization, becoming the most valued PSU stock in India. This comes after a 9% stock rally in the past week.
LIC shares witnessed a surge of over 3% and reached a new 52-week high of Rs 919.45, pushing its market value above Rs 5.75 lakh crore on Wednesday. Meanwhile, SBI’s market capitalization stood at around Rs 5.65 lakh crore during the morning session, said an ET report.
Last month, the finance ministry provided an exemption to LIC from complying with the 25% minimum public shareholding (MPS) norms until 2032. This exemption has boosted the stock as it reduces the likelihood of a government offer for sale (OFS).As per Sebi rules, all listed companies are required to maintain a 25% public float. However, newly-listed companies are given a three-year window to meet this requirement. For companies with a post-issue market capitalization of over Rs 1 lakh crore, the timeline to fulfill the 25% MPS rule is five years.
In May 2022, the government sold a 3.5% stake in LIC’s IPO through an offer for sale worth approximately Rs 21,000 crore, making it the largest IPO in India to date.
The recent surge in LIC’s stock comes after brokerage firms upgraded their ratings on the company. Emkay Global raised its target price on LIC to Rs 975 per share, citing attractive valuation, growth revival in FY25, and the potential for increased dividends.
LIC shares witnessed a surge of over 3% and reached a new 52-week high of Rs 919.45, pushing its market value above Rs 5.75 lakh crore on Wednesday. Meanwhile, SBI’s market capitalization stood at around Rs 5.65 lakh crore during the morning session, said an ET report.
Last month, the finance ministry provided an exemption to LIC from complying with the 25% minimum public shareholding (MPS) norms until 2032. This exemption has boosted the stock as it reduces the likelihood of a government offer for sale (OFS).As per Sebi rules, all listed companies are required to maintain a 25% public float. However, newly-listed companies are given a three-year window to meet this requirement. For companies with a post-issue market capitalization of over Rs 1 lakh crore, the timeline to fulfill the 25% MPS rule is five years.
In May 2022, the government sold a 3.5% stake in LIC’s IPO through an offer for sale worth approximately Rs 21,000 crore, making it the largest IPO in India to date.
The recent surge in LIC’s stock comes after brokerage firms upgraded their ratings on the company. Emkay Global raised its target price on LIC to Rs 975 per share, citing attractive valuation, growth revival in FY25, and the potential for increased dividends.
LIC shares have shifted into outperformance mode post-H1FY24 results, as the worst structural growth differential and persistent cost challenges appear to be receding, Emkay was quoted as saying. This upswing is driven by favorable valuation, robust EV growth amid buoyant equity markets, expectations of growth recovery in FY25 due to a favorable base, expanding product offerings, and anticipation of a significant dividend increase, it added.
Geojit also increased its price target on LIC to Rs 823, based on 0.65x FY25E embedded value per share.
