NEW DELHI: The government has no plans to dilute its stake in the Life Insurance Corporation (LIC) of India as of now, a top official told TNIE. He said that the Centre is holding non-deal roadshows in various countries including in the US to attract potential investors.
“The centre has no plans to sell its stake in LIC. However, we are conducting non-deal roadshows to connect with the potential investors,” the official said. The government is worried about the volatile share price, which has been somewhat on a freefall for a long time.
“The focus of the roadshows is to update investors on LIC’s performance like its financial results and future goals, and learn from industry experts. We are concerned about the low stock price of LIC despite its strong financials,” the official further stated.
The officers of the Department of Investment and Public Asset Management (DIPAM), Department of Financial Services (DFS), and LIC are travelling to various countries including the US to meet investors, the official added.
Non-deal roadshows are communication with investors even when the company is not going public.
On the fall in share prices of LIC, the official said,” LIC has the largest market share in the insurance sector, more than 63%.
The companies’ financials are good. It’s just the market perception that is impacting the stock price of LIC,” the official stated. Meanwhile, another official said that the rumours in the market have led to a massive fall in LIC share price and the investors’ trust in the insurance behemoth got hampered. On Friday, the LIC shares closed nearly 3% lower at `623.80.