Life Insurance Corporation of India (LIC) has been replaced on the list of India’s ten most valuable companies by market capitalisation, Bajaj Finance and Adani Transmission, both of which have a market capitalisation of Rs 4.4 trillion.
LIC was trading at Rs 674 on the BSE at 9.30 a.m., up 0.6% from its previous close, with a market capitalization of Rs 4.26 lakh crore.
The insurer’s shares have dropped 30% from the issue price of Rs 949, wiping out Rs 1.75 lakh crore in value.
The country’s largest insurer, which manages assets worth more than Rs 41 lakh crore, raised Rs 20,500 crore in an initial public offering in early May before going public on May 17.
LIC is now ranked eleventh. Reliance Industries, Tata Consultancy Services, HDFC Bank, Infosys, Hindustan Unilever, ICICI Bank, State Bank of India, HDFC, Bajaj Finance, and Adani Transmission are the top ten most valuable companies in India right now.
LIC recently reported a multi-fold increase in net profit for the June quarter to Rs 683 crore from Rs 3 crore a year ago. However, net profit was down sequentially from Rs 2,371.5 crore in the March quarter. During a conference call following earnings, the insurer stated that profit volatility would be low.
Its new business value fell by more than 80% sequentially to Rs 1,861 crore from Rs 9,920 crore in the March quarter. On an annualised premium equivalent basis, LIC’s total business was Rs 10,270 crore, with the individual segment accounting for 62.8%. In the June quarter, the life insurer sold 59% more policies than the previous year.
In an underserved market, LIC is India’s largest life insurer, accounting for 63% of the total new business premium.
