The government is concerned about the steady decline in LIC stocks and is working to ensure that shareholders do not suffer further losses. The government has termed the price reduction in LIC as temporary and said the government is watching the price reduction. Efforts will be made to increase the value of shareholders.Shares of LIC, India's largest state-owned insurance company, went public after its IPO.
Happened on 17th May. Shares were offered to investors at a price of Rs 949. The stock price has been steadily declining since the listing and plunged to 710 yesterday.
Disinvestment Secretary Tuhin Kant Pandey said the government was concerned about the decline in LIC's shares. This price reduction is not permanent but it is being watched. Look at all the aspects.
On the other hand, Union Finance Minister Nirmala Sitaram said that the government's disinvestment program was not to close down government units but to run such units on a more efficient and professional basis. Referring to privately owned government companies from 1994 to 2004, he said that these companies are now operating on a professional basis and their performance has been very good.