Shares of Life Insurance Corporation of India (LIC) may not cross the initial public offering (IPO) price even a year from now as even the best target given by Bank of America is 2 percent short of the issue price. It is 35 percent short of Goldman Sachs target price of Rs 700 and 13 percent below JP Morgan's target price of Rs 840.

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Bank of America has set a target price of Rs 930 with a 'buy' rating. In a research report, it said that there is a large room for growth in India's underinsured market while adding that it is trading at a 47 to 70 percent discount to its private peers.

JP Morgan has set a target price of Rs 840 with an 'overweight' stance on LIC saying that valuations are "compelling" for a company that has a 44 percent retail market share in FY22.

With a target price of Rs 700 and a neutral rating, Goldman Sachs believes that LIC's topline growth may improve to 10 percent in FY22-25 from 6 percent in FY19-22.

Given the steep correction in LIC shares, the company's chairman MR Kumar recently tried to calm investors saying that they should not be concerned as the recent decline in the stock is in the backdrop of broader weakness in the market.

"LIC has been doing very well strongly in the last couple of months at least. We are growing at the same rate as the private industry, and in some metrics even better than that," LIC chairman MR Kumar told CNBC-TV18 in an exclusive interview.

India's largest public insurer has corrected over 22 percent from its listing price of around Rs 867 on BSE. LIC offered its stock in a price band of Rs 902-949 and opened at a discount of more than 8.5 percent against the issue price.

It surged nearly 2 percent on Wednesday, trading at Rs 677.60 on BSE in an otherwise weak market. In the last five sessions, the stock has corrected 2.5 percent.