Since being listed on the stock exchanges in May of this year, the price of LIC shares has dropped precipitously.
Bajaj Finance and Adani Transmission have replaced Life Insurance Corporation of India (LIC), which was once among the top ten companies by market capitalization. LIC is ranked eleventh, while Bajaj Finance and Adani Transmission are ranked tenth and nineth overall, respectively.
Adani Transmission joined the elite group of top 10 most valuable companies with a market value of ₹4.43 lakh crore on the BSE as of August 30, 2022, surpassing LIC’s ₹4.26 lakh crore and Bajaj Finance’s total mcap of ₹4.42 lakh crore.
Since LIC’s stock was listed on the stock exchanges on May 17, 2022, its price has dropped significantly. Investors received LIC shares for a price of ₹949 each, and they were listed at a discount on stock exchanges. From its initial public offering (IPO) issue price of ₹949, the stock has decreased by about 29%.
The state-run life insurance behemoth reported a multifold jump in its June quarter net profit at ₹682.9 crores as compared to ₹2.9 crores in the year-ago period. The insurer, which heavily relies on its agents, reported a 20% year-over-year (YoY) increase in net premium, driven by a 35%/9% increase in new/renewal business as COVID-19 restrictions were loosened.
The performance was lower across the board when compared to the March quarter before. The company, which runs its business primarily through its 1.3 million sales agents, was affected by lockdowns brought on by the pandemic last year, which interfered with the work of its agents who prioritize in-person engagement.
In CY22, LIC’s market share grew steadily. Two new Non-PAR products were introduced in Q1 FY23. The management stated that its sole focus would be the introduction of Non-PAR products. A first-time channel-specific product was also introduced.
With a market capitalization of ₹17.8 lakh crore, Reliance Industries Limited (RIL) is the most valuable Indian company, followed by Tata Consultancy Services (TCS), HDFC Bank, Infosys, Hindustan Unilever (HUL), ICICI Bank, State Bank of India (SBI), and HDFC.