Centre 'concerned' about LIC share price dip; calls it temporary blip
LIC shares have remained below the issue price since the day of listing and had touched a low of ₹708.70 and a high of ₹920.
PremiumThe Union government on 10 June said it is 'concerned' about the temporary dip in LIC share prices. Adding more, the government assured that the insurer's management will look into these aspects and raise shareholders' value.
Life Insurance Corporation (LIC) was listed on the bourses on 17 May at ₹872 a share. The government fixed the issue price of LIC shares at ₹949 apiece after a successful Initial Public Offering (IPO) which was over-subscribed nearly 3 times.
LIC shares have remained below the issue price since the day of listing and had touched a low of ₹708.70 and a high of ₹920.
ALSO READ: LIC investors lose ₹1.43 lakh crore after listing. Is there more pain ahead?
"We are very concerned about the temporary blip in LIC share price. People will take time to understand (fundamentals of) LIC. LIC management will look into all these aspects and will raise the shareholders' value," DIPAM secretary Tuhin Kanta Pandey said.
Shares of LIC closed at ₹709.70 on the BSE on 10 June.
Explaining the upside potential in LIC scrip, an official said that the Embedded Value (EV) at the end of March will give a better picture of the insurer. "LIC would update its EV by June-end," the official said.
According to the draft papers filed with market regulator Sebi, LIC's EV was over ₹5.39 lakh crore at the end of September 2021.
"The market has not got March EV hence it is conjecturing. Rate of future growth of insurance companies can only be assessed via EV. The increased EV at the end of March will give a forward looking view to the market as it will also include the number of new customers," the official added.
The government had garnered about ₹20,500 crore through sale of 3.5 per cent stake in LIC via IPO last month.
With inputs from PTI.
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