India’s Largest Insurance Company – Life Insurance Company of India – LIC holds a 4.34% stake in Satyam Computer Services Ltd. We first broke the news about Satyam’s bankruptcy yesterday.
The investment committee and equity research team of one of India’s major insurer – Life Insurance Corporation of India (LIC) – will meet soon to take a decision on the stake held in the embattled software firm, Satyam Computer Services.
LIC holds 4.34% stake in the country’s fourth largest software company.
The shares of the IT company fell by more than 80% on January 7, 2009 after its chairman Ramalinga Raju confessed to frauds and manipulation in the financial statements of the concern over quarters.
LIC officials stated that the company’s investment decisions are taken looking up on the long tern fundamentals of the company that they invest in and not on the short-term developments.
In a separate development, Union commerce and industry minister Kamal Nath on Wednesday stated that the government will not take over the beleaguered IT major Satyam Computer Services. He urged India Inc to respond to the call and help the company wriggle out of the financial mess created by its chairman Ramalinga Raju.