Must analyse LIC share price performance in medium to long term: Finmin

“The LIC Board and management have been continuously engaged in strengthening and improving the performance parameters, keeping in view the interest of policyholders, shareholders and other stakeholders,” minister of state for finance Bhagwat Kishanrao Karad told Rajya Sabha in a written reply.

Must analyse LIC share price performance in medium to long term: Finmin
The LIC share price closed at Rs 675.35 on Tuesday, down 1.29% from the previous closing price on the BSE.

With the share price of Life Insurance Corporation (LIC) witnessing a sharp correction post listing, the finance ministry on Tuesday told Parliament that the performance of a particular stock needs to be analysed on a medium to long-term basis for a newly listed entity.

“The LIC Board and management have been continuously engaged in strengthening and improving the performance parameters, keeping in view the interest of policyholders, shareholders and other stakeholders,” minister of state for finance Bhagwat Kishanrao Karad told Rajya Sabha in a written reply. The LIC share price closed at Rs 675.35 on Tuesday, down 1.29% from the previous closing price on the BSE. Its current share price is about 29% lower than its IPO issue price of Rs 949/share.

There are several factors that affect the trading price of an entity such as geo-political factors, global and national macro-economic environment and perceptions of market participants on the prospects of a particular sector and/or the entity, Karad said. The market capitalisation of a listed entity changes on a continuous basis, based on a small volume of shares traded in the market, the minister said. The LIC IPO in May this year comprised 22,13,74,920 shares, disinvested by government as an offer for sale.

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