LIC is planning to buy 30-45% stake in a company in the health insurance segment. The first name in this is Manipal Cigna. Star Health and Niva Bupa are also on the radar. LIC is trading with a slight decline in the stock market.
Life Insurance Corporation of India (LIC) is preparing for a big deal to strengthen its hold in the health insurance sector. According to a CNBC-TV18 report, LIC is currently examining the financial records of companies like Manipal Cigna Health Insurance, Star Health & Allied Insurance and Niva Bupa Health Insurance. It intends to buy 30% to 45% stake in any one of these.
Deal with Manipal Cigna is more likely
According to the report, there is a high possibility of buying stake in Manipal Cigna Health Insurance. But no final decision has been taken yet. The Economic Times reported on March 27 that the agreement between LIC and Manipal Cigna to buy 40% to 49% stake is in the final stages.
Manipal Cigna is a joint venture. Bengaluru-based Manipal Education & Medical Group holds a 51% stake in it, while the remaining 49% is held by US-based Cigna Corporation.
Star Health and Niva Bupa responded
Star Health told CNBC-TV18 that it does not comment on market rumors and speculation, but it will continue to look for new opportunities. Niva Bupa’s management said that they are not aware of any such development.
LIC plans to enter the health insurance market
LIC CEO Siddharth Mohanty had already indicated that the company is planning to enter the health insurance market. In a post-results media call in February, he said that LIC is identifying a health insurance company to buy stake. But valuation and regulatory approval will take time, so this deal is not possible in the current financial year.
LIC shares fall, but recovery continues
If we talk about the performance in the stock market, then on Friday (March 28), LIC shares saw a slight decline. It closed at ₹ 799.00 with a loss of 0.27%. LIC stock has recovered somewhat from the 52-week low level of ₹ 715, which it touched on March 3. However, it is still well below the 52-week high of ₹ 1,222.
At the same time, Star Health shares closed at 353.00 with a decline of about 1.48%. Niva Bupa shares saw a rise. It closed at 77.79 with a gain of 1.47%.
