While unveiling its first earnings post listing, India’s biggest insurer and largest domestic financial investor Life Insurance Corporation of India also announced a dividend of ₹1.50 per share with a face value of ₹10 each, which is subject to shareholders’ approval at its upcoming annual general meeting (AGM).
The company has now fixed the record date for its said dividend. “Record date for Dividend payment will be 26th August, 2022,” LIC informed in an exchange filing on Monday. LIC, which got listed on the bourses in May, will hold its first Annual General Meeting on September 27, 2022, according to stock exchange filing.
On the other hand, state-owned LIC will invest ₹80.67 crore in the proposed rights issue of its joint venture LIC (Nepal) Ltd. The proposal was approved during the insurer’s board meeting on Monday.
In another filing, LIC said the central government has nominated Suchindra Mishra, Additional Secretary, Department of Financial Services, as Government Director on its board with immediate effect, replacing Pankaj Jain.
In its first earnings release post shares listing, LIC posted a 17% decline in consolidated net profit to ₹2,409 crore for Q4 from ₹2,917 crore in the same quarter a year ago. The total income of the insurer increased to ₹2,12,230 crore, from ₹1,90,098 crore in the same period of the previous fiscal year.
LIC share price has fallen sharply since its listing on the stock exchanges on May 17, 2022. LIC shares were allotted to the investors at ₹949 apiece and got listed at the stock exchanges at discount. The stock is about 34% down from its IPO issue price of ₹949.
LIC IPO, India’s largest till date, had closed with nearly 3 times subscription. The government sold over 22.13 crore shares or a 3.5% stake in LIC through the initial share sale. The proceeds from the LIC issue make up for about a third of the ₹65,000 crore disinvestment target of the government set for the current fiscal. LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956.
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