LIC Share Price Increases 3% As Talks With Health Insurance Firm Enter Final Stage

The Life Insurance Corporation of India (LIC) shares increased 2.6% in trade on the BSE, observing an intraday high at Rs 777.7 per share. The share extended its rally for the third session consecutively and rose almost 4%.

Why The Sudden Demand?

The demand for the stock has increased due to an official company filing that states that the insurer is in advanced talks with a standalone health insurance firm to acquire a substantial stake, to broaden the corporation's footprint in the health insurance market.

Around 5:36 PM, LIC share price was up 2.56% at Rs 777.05 per share on the BSE. Currently the market capitalization of the company stands at Rs 4,90,693.32 crore. Further, the 52-week high of the stock was at Rs 1,221.5 per share and the 52-week low was at Rs 715.35 per share.

What Was The Insurer's Announcement?

"We hereby clarify that Life Insurance Corporation of India (the Corporation) is in advanced talks with a standalone health insurance company to acquire the substantial stake, to broaden corporation's footprint in the health insurance market," the company said in a statement.

According to LIC, the corporation is still in advanced talks and no binding agreement has been entered into. The ultimate consummation and the execution of the deal is subject to various factors, including approval of the board of directors of the corporation, regulatory approvals and other approvals, if any.

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