Market cap: HDFC Bank loses Rs 1 lakh crore, LIC overtakes SBI

Life Insurance Corporation of India (LIC) became the most valuable listed public sector company, surpassing the market capitalisation of the State Bank of India (SBI). LIC’s market capitalisation now stands at Rs 5.60 lakh crore as against SBI’s Rs. 5.58 lakh crore.

The surge in LIC’s market value is underscored by the fact that its share price reached a high of Rs 919.45. This milestone is particularly noteworthy as it is the first time since its listing that LIC’s share price has scaled such heights.

Shares of LIC were listed on the stock exchange on May 17, 2022, with a listing price of Rs 867.20 per share on the BSE, slightly below its issue price of Rs 949. However, in the subsequent months, the shares experienced a downturn, reaching an all-time low of Rs 530.20 on March 29, 2023. Despite this challenging period, LIC’s fortunes took a positive turn in November 2023 when its shares witnessed a substantial spike of over 12.85 per cent.

This upward momentum continued with a 22.63 per cent surge in December 2023, and a further 6.43% spike in the first two weeks of January 2024. These gains contributed to LIC’s market capitalisation witnessing an increase of Rs 1.50 lakh crore in the last three months.

The government sold LIC shares worth Rs 21,000 crore in the IPO to raise funds. Despite the market fluctuations, the government continues to hold a substantial 96.5 per cent stake in the company.