Centre initiates talks with global investors over LIC business prospects

Move could be a precursor to further dilution of stake in the insurance major

The government has initiated talks with global investors over the business prospects of the Life Insurance Corporation (LIC), whose shares have got hammered after its listing in May last year.

Top bureaucrats of the finance ministry and the LIC management have started a series of meetings with large investors across geographies to understand their concern and convey to them that the markets could be undervaluing the stock. The move could be a precursor to a further dilution in stake in the insurance behemoth.

The government intends to sell a further 2 per cent in the LIC but a decision could