The central government on June 10 said it was “concerned” over the temporary fall in LIC’s share prices. Adding to this, the government assured that the insurer’s management would look into these aspects and enhance the value of the shareholders.
Life Insurance Corporation (LIC) got listed on the stock exchanges on 17th May 872 per share. Government fixes issue price of LIC shares 949 each after a successful Initial Public Offering (IPO), which was oversubscribed by almost 3 times.
LIC shares have remained below the issue price since the day of listing and touched a low of Rs. 708.70 and higher 920.
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Tuhin Kanta Pandey, Secretary, DIPAM said, “We are very concerned about the temporary blip in LIC share price. It will take time for people to understand LIC (Fundamentals). LIC Management will look into all these aspects and value the shareholders. will increase.”
LIC shares closed 709.70 on BSE on June 10.
Elaborating on the possibility of a rally in LIC shares, an official said that the Embedded Value (EV) at the end of March will give a better picture of the insurer. “LIC will update its EVs by the end of June,” the official said.
According to the draft papers filed with the market regulator SEBI, LIC’s EV was over 5.39 lakh crore at the end of September 2021.
“The market has not received March EVs so this is just speculation. The future rate of growth of insurance companies can be judged through EVs only. The EV market that grew at the end of March is going to look forward. The view will be given as it will add to the number of new customers,” the official said.
government has almost 20,500 crore through sale of 3.5 per cent stake in LIC through IPO last month.
With inputs from PTI.