LIC clarifies on ManipalCigna stake acquisition buzz; here’s what the insurer said | Stock Market News
Source: Live Mint
Stock Market Today: Public sector insurer Life Insurance Corporation of India (LIC) clarified in an exchange filing on Thursday, November 28, regarding a recent news item about a potential 50% stake acquisition in ManipalCigna Health Insurance.
Business daily The Economic Times today reported that Life Insurance Corporation of India is in discussions to acquire a nearly 50% stake in ManipalCigna Health Insurance as it seeks entry into the fast-growing medical expenses coverage market.
As per the report, the two parties have signed a non-disclosure agreement and are continuing discussions for LIC to acquire about a 50% stake in the venture. The deal could value the health insurer around ₹4,000 crore, it further added.
Following this report, the stock exchange had sought clarification from India’s largest insurance company.
Clearing The Air
In its clarification to the exchanges, LIC said, “Life Insurance Corporation of India (“the Corporation”) evaluates and explores various strategic opportunities on an ongoing basis in various sectors, including the health insurance segment, for growth, diversification of its business, and investment opportunities. At this stage, there is no material information/event that requires disclosure under Regulation 30 of the Listing Regulations.”
The Corporation will make appropriate disclosure in compliance with applicable laws, as and when required, the state-run insurer further added.
Stock Price Trend
Despite a massive drop in the benchmark equity indices today, LIC share price witnessed strong buying action, defying the weak market mood.
LIC share price surged nearly 4% to ₹952.50 on the BSE today. Later in the day, around 3 pm, the stock was trading 2% higher at ₹933.50.
The stock hit a 52-week high of ₹1,221.50 on August 1, 2024, and a 52-week low of ₹666.25 on December 1, 2023.
LIC has a market capitalization of ₹5.90 lakh crore.
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