Govt ‘worried’ over fall in LIC share price; it’s called a temporary blip
LIC share price news: The government on Friday said it is “concerned” over the temporary default in LIC shares and the insurance company’s management will look into these aspects and enhance shareholder value. Life Insurance Corporation (LIC) was listed on the stock exchange on May 17 at Rs 872 per share. The government had fixed the issue price of LIC’s shares at Rs 949 after a successful initial public offering (IPO), which was oversubscribed by almost 3 times.
Since the day of listing, LIC shares have remained below the issue price and touched a low of Rs 708.70 and a high of Rs 920. “We are very concerned about the temporary blip in LIC share price. It will take time for people to understand (fundamentals of LIC. LIC management will look into all these aspects and enhance the value of shareholders,” said Tuhin Kanta Pandey, Secretary, DIPAM. Said. LIC’s stock closed at Rs 709.70 on BSE on Friday.
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 SEBI, the EV of LIC at the end of September 2021 was over Rs 5.39 lakh crore. “The market has not received March EVs so it is speculating. The future rate of growth of insurance companies can be assessed only through this. EVs. Increased EVs at the end of March will give a forward-looking view to the market as This will also include the number of new customers,” the official said.
The government had raised around Rs 20,500 crore last month by selling 3.5 per cent stake in LIC through an IPO.
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