Life Insurance Corporation (LIC) surged five per cent in opening trade, continuing its stellar performance from Thursday when it hit an all-time high.
At opening, the shares of LIC were trading at ₹1162.25 against the previous day’s close of ₹1106.
The surge in the insurer’s stock came days after Prime Minister Narendra Modi mentioned its performance during his address to the Rajya Sabha.
“Opposition spread rumours about LIC, but today its shares are trading at record high price,” the prime minister had said in the Rajya Sabha during the ongoing budget session.
On Thursday, the LIC stock zoomed 9.51 per cent to hit the record high of ₹1,144.45 before settling at a six per cent gain at ₹1,106.25 when the market closed. The company’s market valuation surged by ₹38.740.62 crore to ₹6,99,702.87 crore. As a result, the company edged past ICICI Bank to become the fifth most valued firm by market capitalisation.
Last month, the insurer had surpassed State Bank of India (SBI) to become the country’s most-valued PSU firm by market valuation.
The LIC stock was listed in May 2022. The government had sold over 22.13 crore shares, or a 3.5 per cent stake in LIC, through an Initial Public Offering (IPO).
LIC had reported a 49 per cent jump in net profit at ₹9,444 crore in the third quarter that ended in December. According to a PTI report, the company had a net profit of ₹6,334 crore in the year-ago period, the company said in a regulatory filing.
LIC’s net premium income eased to ₹1,17,017 crore in the third quarter of the current fiscal, from ₹1,11,788 crore in the same period a year ago. Its total income declined to ₹2,12,447 crore in the latest December quarter, compared to ₹1,96,891 crore in the year-ago period, it said.
The asset under management (AUM) of the insurer increased to ₹49.66 lakh crore as compared to ₹44.34 lakh crore at the end of December 2022, registering a growth of 12 per cent, the company added.