India's largest public sector insurer, Life Insurance Corporation of India (LIC) on Thursday (November 28) through the regulatory filing issued a clarification related to speculation about the company's potential acquisition of a 50 per cent stake in ManipalCigna Health Insurance.
Clarification on Stake Acquisition
Recent reports suggested that LIC was in discussions to acquire stake in ManipalCigna Health Insurance, that could value the health insurer at approximately Rs 4,000 crore. The report also indicated that both parties had signed a non-disclosure agreement and were continuing talks about the deal.
In response to these claims, LIC clarified through an exchange filing and said, "We hereby clarify that Life Insurance Corporation of India (“the Corporation”) evaluates and explores various strategic opportunities on an ongoing basis in various sectors including health insurance segment, for growth, diversification of its business and investment opportunities."
Furthermore, the company in the regulatory filing added, "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."
LIC’s Stock Performance
The clarification appeared to have a positive impact on LIC's shares, which ended Thursday at Rs 940.90, up by 2.68 per cent.
Share Performance - NSE |
During the day, the stock opened at Rs 920.00 and reached an intraday high of Rs 952.50 apiece.
As of now, the market capitalisation of the country's largest public insurer, LIC stood at Rs 5.94 lakh crore.
