LIC’s M-Cap Erodes, Yet Exceeds HUL & ICICI Bank’s Valuations; Experts on Listing

  • Economic Indicators News
LIC’s M-Cap Erodes, Yet Exceeds HUL & ICICI Bank’s Valuations; Experts on Listing

By Malvika Gurung -- The country’s largest life insurer Life Insurance Corporation (NS: LIFI ) made a weak debut on Dalal Street on Tuesday, listing at a discount of 8.62% at Rs 867.2/share on the BSE, and was trading 6.64% lower at Rs 886 apiece at 11:40 am.

At the time of writing, LIC’s market capitalization stood at Rs 5,60,869 crore, eroding Rs 39,373 crore compared to its valuation of Rs 6,00,242 crore at the issue price.

Despite having lost almost Rs 40,000 crore of investor wealth shortly after getting listed on the exchanges, LIC’s market capitalization is still higher than that of heavyweights Hindustan Unilever (NS: HLL ) and ICICI Bank (NS: ICBK ).

This makes LIC the fifth most valuable Indian company, in terms of market capitalization. 

Further, even though LIC is listed at an up to 9% discount on the stock exchanges, Hemang Jani of Motilal Oswal (NS: MOFS ) expects buying interest from retail and institutional investors in the stock, given its attractive valuations and positioning in the markets.

Besides, several analysts and market experts believe that the behemoth insurer opened at a discounted price today due to negative secondary market sentiments and high volatility, amid increasing inflationary pressures, interest rates, disappointing Chinese economic data, slower economic growth and the persisting Russia-Ukraine war.

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