Recently, LIC shares listed on the main market of NSE and an article in The Economic Times provides some insight into what this means for Indian shareholders. It seems as though LIC stocks were outperformed by HUL and ICICI’s shares, but still managed to beat both of them to become India’s fifth most valued company, despite the bearish share performance from investors.
LIC announced today that it has beaten HUL and ICICI to become India’s fifth most valued company. However, on listing day the stock crashed by around 8% leaving the company worth Rs. $5.48 Lakh on the day of listing.
Experts are attributing this sudden stock fall to a number of reasons, including weak organic growth, potential pressure from aggressive rivals, and concerns about growing debt levels. However, LIC’s Chairman Ramnath Goenka is confident that the company can overcome these challenges.
LIC may not have had an eventful year as far as share prices are concerned but its performance in other areas such as loan growth and profitability show that its business model is sound. Investors should give the company a chance to prove itself before making any decisions about its future.
LIC beats HUL and ICICI to become India’s fifth most valued company
LIC, India’s fifth most valuable company, has beaten the two largest consumer durables companies, Hexacom and Hindustan Unilever Limited (HUL) in terms of market capitalisation on its initial public offering (IPO) day. The company stood at 5th position with a market capitalisation of $5.48 lakh, HUL at $5.28 lakh, and ICICI at $4.80 lakh.
LIC falls 8% on listing day
LIC, India’s largest pension fund, has beaten HUL and ICICI to become India’s fifth most valued company, but fell 8% on the day of its listing on the Nation Stock Exchange. The company has a market capitalisation of $5.48 Lakh on the day of the listing.
LIC on Tuesday listed its shares at a discount of 8.11 per cent at Rs 872 per share on NSE. On BSE, the shares got listed at Rs 867.20 a piece which is 8.6 per cent less from its original price Rs. 949 per share.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. Now, the company has worth of $5.48 lakh and it is one of the fifth largest company in India.