June 16, 2024

Life Insurance coverage Company of India (LIC) crossed its problem value mark for the primary time on January 30 after the central financial institution permitted the corporate to extend its stake in HDFC Financial institution.

The problem value for LIC was between Rs 902-Rs 949 per share. The preliminary public providing was launched in Could 2022 and was listed at a reduction to the difficulty value at Rs 867 on the Nationwide Inventory Alternate.

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Following its itemizing, LIC shares noticed a downward development, witnessing a decline of 26 p.c from the itemizing till November of the earlier 12 months. Nevertheless, a noteworthy reversal occurred post-November, with LIC shares exhibiting a outstanding acquire of 55 p.c in simply two months.

HDFC Financial institution talked about that the central financial institution gave permission to LIC to accumulate a 9.99 p.c stake within the financial institution inside a interval of 1 12 months, by January 24, 2025. At of Q3FY24, LIC held 34 crore HDFC Financial institution shares, representing a 5.19 p.c stake within the financial institution. With the central financial institution’s approval. LIC can purchase an extra 4.8 p.c stake in HDFC Financial institution.

Additionally learn LIC’s proposed stake buyout in HDFC Financial institution ‘well-timed’, has restricted draw back

Market consultants imagine that LIC’s proposed extra stake buyout of 4.8 p.c comes at a time when the lender’s inventory valuation turned enticing submit its steep fall.

LIC’s web revenue fell 50 p.c year-on-year to Rs 7,925 crore in Q2FY24.  It had reported a web revenue of Rs 15,952 crore within the year-ago interval. The autumn in revenue numbers had been as a result of it modified its accounting coverage in September 2022 relating to switch of quantity (Internet of Tax) because of which YoY revenue figures weren’t comparable.

LIC shares had been buying and selling 2.89 p.c up at Rs 942.05 at 13.45 pm on the Nationwide Inventory Alternate.

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