If you are familiar with the Life Insurance Corporation of India, simply LIC, then let us look at some of the statistics about LIC’s share price and share market performance since its entry.
But before that, giving you a background of the making of LIC.
All About LIC
LIC, also known as the Life Insurance Corporation of India, is a state-owned insurance company in India. It is headquartered in Mumbai and is owned by the Government of India.
LIC was established on September 1, 1956, under the Life Insurance Act of India, passed by the then Parliament of India, which nationalized the insurance industry in India.
The present-day Life Insurance Corporation of India results from the merger of more than 245 insurance companies and provident societies.
It now has 2048 branch offices across India, 1381 satellite offices, 113 divisional offices, eight offices at the zonal level, and one corporate office.
LIC has the following subsidiaries: LIC Housing Finance, LIC International Ltd, LIC Cards Services Ltd, LIC Mutual Fund Ltd, LIC Pension Fund Ltd, and IDBI Bank.
Journey in the Stock Market
Last year, LIC made its debut in the stock market. In the beginning, it did not remain at a good range, but towards the end of the year, its price touched the Rs 700 mark for the first time since its launch, as the price range for its offer was between Rs 902 and Rs 949.
LIC’s IPO was the biggest India had ever seen. It generated the biggest retail response to any IPO, making it the third largest in the world.
However, it did not turn out that well, thus causing its capitalization to fall by 8%. After that, the stocks did not recover for a long time. The volatile nature of the stock market did not help the stocks of LIC recover well, thus making them susceptible to a downward trend.
In addition, rising inflation in the post-COVID era, coupled with unmatching global prices and changing investor sentiments, had a huge negative impact on the LIC.
After that, it showed a continuous good performance in the headlines. This continued to perform well.
- The shares of LIC rose by 4.1% to ma.1.
Before this share rise, the company announced a transfer of $22 billion from the policyholders’ fund into the dividends fund or issuing bonus shares.
- The company also planned to transfer Rs 1.8 trillion to its shareholders’ fund.
These transfers in funds will indicate a sense of trust and confidence in the fund’s transferors, which will keep them interested as this will indicate a higher d, keeping shortly.
There are many other specifications along with that. All this has been possible due to some changes in government policy. Some of these were,
Change in Regulation
Earlier, insurance companies were allowed to sell only one line of products compared to banks, which were allowed to sell both insurance and banks. This changed in this functionary, and a proposal was made.
Since all insurance needs to change these businesses, the government has made it possible for insurance companies to sell numerous products, such as life insurance, health insurance, mutual funds, and investment management, with extreme flexibility.
Due to this change in regulation, insurance companies do not need endorsers to sell their products or services.
Better Busthem sellnce
In the second quarter, they reported an increase of 27% in their quarter-on-quarter premium receipt. Income from various other sources, such as investments, assets under management, revenue, and net profit, also improved simultaneously.
After the out of the quarterly results, the share price of LIC saw a releaser-ease of Rs 4o, and the eLIC’s share price increased byte to rise steadily. Ge in ManagemitLIC participated in the stock market; it did not perform well compared with expectations, so the government changed the system. It decided to appoint an executive from the private sector to be the CEO of LIC.
The government also plans tto recruit private sector employees in LIC to change the scenario. This will increase employees’ competitiveness and improve their performance levels.
Issues
In October, it made the huge announcement that it would be transferring a fund of $22 billion from its fund of policyholders to its dividend funds.
This excited the investors to keep their interest in the company’s stocks.
- Today, the LIC share price is Rs 712.60 with the addition of Rs 28, a rise of 4.09% as previously it c, with 684.60.
- From its previous close, the housing finance’s share price rose by 2.46% today to Rs 424.35, with Rs 10.20 added. Previously, the market was closed at Rs 414.15.
Wrap Up
Understanding the share market is not easy, but you can still have some idea of its functioning and progress.
The market analysis has helped us understand LIC’s market position. This position will continue to fluctuate with changes in the share market’s behavior.
We hope that this write-up has helped you understand LIC’s share market position in the past and present.
