Shares of Life Insurance Corporation of India Ltd. have been buzzing in trade on Thursday, even when broader markets and benchmark indices are facing pressure. The stock is trading at Rs 429, accounting for gains of more than 2.5% compared to Wednesday's closing price.
LIC's rally comes at a time when Nifty is trading 0.11% in the red, with major largecap peers also trading with cuts.
The outlier move tracks the draft papers filed by the National Stock Exchange of India Ltd. for its long-awaited initial public offering.
LIC is the single largest shareholder in NSE, holding a 10.72% stake, as per the exchange's draft red herring prospectus filed on June 17. Crucially, the state-run insurer is not among the shareholders paring holdings in the offer-for-sale, leaving its entire stake intact ahead of the listing.
That positions LIC as one of the biggest beneficiaries of the price discovery the IPO will trigger, with the market now able to put a value on a stake the insurer has held for years. NSE, the world's largest equity derivatives exchange by contracts traded, is set to list on rival BSE Ltd.
ALSO READ: NSE IPO Filing: Key Financials, Big Sellers, Famous Stakeholders & More | Story In Infographics
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
