India's Biggest IPO LIC's Share Hits New 52-Week High; Should You Insure Your Portfolio With This Stock?

Riding on the back of bulls, India's largest insurer Life Insurance Corporation of India (LIC) touched a new 52-week high of Rs 788 apiece on Thursday. After a volatile start, the stock has gained by a massive 5%. Experts predict LIC to cross the Rs 800 mark soon. LIC went public in May 2022 after launching the country's biggest IPO. Last year was broadly dull for LIC where it lost crores worth market valuation. However, the current month has taken LIC to new heights, and many are expecting it to hit its all-time high levels.

On NSE, at the time of writing, LIC shares traded at Rs 779.95 apiece, up by 4.6%. The stock was near its new 52-week high of Rs 788 apiece.

In five trading sessions, LIC shares have rallied by nearly 15%, while year-to-date, the stock is up by over 10%.

Earlier, LIC's 52-week high was Rs 754.25 apiece which was recorded on December 20th last year. The stock's 52-weel low continues to Rs 530.05 apiece which was struck on March 29, 2023.

LIC launched the country's largest IPO worth Rs 21,000 crore in May last year, at a price band of Rs 902-949 per share. Despite the decline in share price compared to the public offer's issue price, LIC continues to hold the title of the biggest IPO to this date.

LIC shares were listed on May 17, 2022. On the listing day, the stock touched its all-time high of Rs 918.95 apiece. The highest closing price of LIC up till now is Rs 876.34 apiece which was witnessed on May 18, 2022.

The latest upside comes after the insurer announced a new Shareholders' Director Regulations, 2023, where the insurance policies provider highlighted new norms for appointing shareholders to its board.

Under the shareholders' framework, LIC said, "The shareholders to propose a member of a candidate for the post of shareholders director shall submit a notice of their intention with the Corporation at least 14 days before the general meeting of shareholders..."

Also, no person appointed as a shareholders director of the Corporation shall hold a similar position in more than two body corporates at the same time. Meanwhile, the shareholders appointed will have a tenure of four years and will be eligible for re-election or re-appointment for another four years.

Apart from this, LIC shares also gained momentum after a US-based International Development Finance Corp (DFC) found the accusations made by Hindenburg Research against the port-to-energy conglomerate to be irrelevant. This has led to massive optimism in Adani shares, and LIC is well-placed to make huge gains in them. LIC is among the largest shareholders in several Adani stocks. LIC too faced volatility and a bearish tone from late-January to March 2023 after the Hindenburg report accused Adani Group of brazen stock manipulation and fraud.

So the latest development comes as good news for LIC's shareholding in Adani stocks.

Should you secure your money with this insurance stock?

Avdhut Bagkar Derivatives & Technical Analyst StoxBox said, "The stock has broken out of the mild consolidation of the range of 700 to 670, implying a bullish breakout aimed at hitting 750 levels. The support for the current trend exists at 680 & 670 levels. Weekly chart suggests that a feasible accumulation around 720 - 710 levels could trigger medium-term outlook towards 800 mark."

Further, the analysts' price target at Trendlyne suggests an Rs 820 level for LIC shares, which is an upside potential of 11% from the current market price. LIC shares weekly average delivery volume is 38.08%. The stock is trading above 8 out of 8 SMAs, while it is above 7 out of 9 Oscillators in the bullish zone.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.