According to the government, the drop in the stock price of LIC is a one-time blip.

  • June 11, 2022, 12:53 p.m.

The government is concerned about the falling stock price of Life Insurance Corp. (LIC) of India, said Tuhin Kanta Pandey, secretary of the department of investment and public asset management, but termed the drop in valuation of India’s largest insurer as a temporary "blip."

The stock price of LIC touched a low of 708.7, after making its trading debut at 872 last month. The issue price was fixed at 949 apiece. On Friday, LIC shares ended trading at 709.7 on the BSE.

"We are very concerned about the temporary blip in the LIC share price. People will take time to understand (the fundamentals of) LIC. "The management will look into all these aspects and will raise the shareholders‘ value," he said.

The management of LIC will also look into the movement of the stock price, he said, while adding that the stock price had fallen prey to market conjecture.

"LIC would update its EV (embedded value) by the end of June," Pandey said. According to the draft papers filed with the Securities and Exchange Board of India, LIC’s EV was more than 5.39 trillion as of September 2021.

He further said that investors must stay for the long term and noted that the share price should see an upside by June 30 when the next embedded value will be arrived at, after taking into consideration the data at the end of March.

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

Related News