A year after listing, LIC trades at 40% discount to issue price

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A year after entering the market with an extension initial public offering (IPO)Arrow Life Insurance Corporation (LIC) It is trading at INR 567, which is nearly 40 percent less than The issue price is 949 Indian rupees.

Last May, the center, which owns a majority stake in the insurance giant, Offloading more than 22.13 crore shares or 3.5 percent of the shares in LIC through an IPO at a price of 902-949 per share.

Retail investors and qualified employees of LIC were offered a discount of Rs 45 per share of stock on the issue price, while policyholders were offered a discount of Rs 60 per share. The government raised ₹21,000 crore from the IPO.

LIC net profit It grew multi-fold to Rs 6,334 crore in the third quarter of FY23 for ₹235 crore recorded during the same period in the previous year. However, on a sequential basis, the net profit declined sharply as the net profit in the September quarter was Rs.15,952 crore.

Also read: The IOC is likely to post a better performance consecutively in the fourth quarter of fiscal ’23

LIC net premium income grew by 14 per cent in the December quarter to ₹1.11-lakh crores from ₹97,620 crores in the same quarter of the previous year, while new business premium grew to ₹9,725 crores from ₹8,749 crores in December quarter of the previous fiscal year.

Gaurang Shah, Senior Vice President, Geojit Financial Services, said growth may be slower due to recent budget announcements.

“However, there is a huge market in terms of ‘insuring the uninsured’ and this will not only create opportunities for LIC but also for other related entities such as HDFC Life, ICICI Prudential and SBI Life,” he added.

The Union budget for fiscal year 24 proposed that the proceeds from insurance policies With installments over Rs 5 lakh it will be taxable. However, LIC said it sells more small and medium-sized policies, with the share of large-sized policies less than 1 percent.