LIC Earned Rs 10,000 Crore By Selling Old Shares In Last 90 Days! Market Cap Rs 8 Lakh Crore Now
What do you do, when you want to sell something? You show great benefits from the purchase of it. You try to put it in a nice nifty package which will attract the eyes of the customers. In short, you try to make the deal as lucrative as possible for the buyer. And then you will be able to make the sale which is a win-win for both parties.
But if you are the largest insurer in the country, maybe, you won’t have to go through all these troubles. You simply will have to announce we are up for sale and voila, the crowd will flock to you. And on top of that, if your recent yearly and quarterly performance is stellar, then that is the cherry on the cake. The same is happening with our ole dear LIC which is bound for IPO.
LIC shows jaw-dropping results
According to sources familiar with the matter, the company in the recent June quarter has sold shares worth around Rs.20000 Crore. And from the same selling, the profit garnered is almost Rs. 10000 Crore. One of the main reasons being told for the same is that LIC is a contrarian investor i.e. most of the time they try to invest not as per the wind of the market. That helps them gain the advantage of acquiring stocks at a very low price. Another reason is the advantage of starting early. LIC has been around for decades now, when there were hardly any competitors in the market. Also, the sheer economy of scale with which they operate helps them garner higher profits.
But LIC was not only a selling spree. In the financial year 2021, the largest insurer in the country has infused fresh cash of Rs. 90000 Crore in the market. That makes the total investment of LIC, in the share market, worth around Rs. 8 Lakh Crore.
These figures bode well for the public offering
As per the announcement made by the government for the IPO of LIC, the market is brewing to welcome the favorite insurer in the country. The stellar profit made by the company in the recent months will surely give LIC a significant boost on the day of IPO.