LIC declares dividend: State-run insurance giant Life Insurance Corporation of India (LIC) has announced a dividend of Rs 1.50 per share with a par value of Rs 10 each for fiscal year 2021-22 (FY22), subject to the buckling of the shareholders. “The Board of Directors, in its meeting of 30.05.2022, has proposed a dividend of Rs 1.50 per share of shares with a par value of Rs 10 each for the year ended March 31, 2022, which is subject to the approval of the shareholders in AGM,” said a regulatory filing.
The dividend recommendation comes as the insurance giant received a lukewarm response from its mega initial public offering (IPO). The stock had hit an all-time low of Rs 801.55 after trading weakly against the issue price of Rs 949. During Monday’s trading, the stock closed at Rs 837.05 – a nearly 12 percent discount off the IPO price. .
According to stock market experts, LIC stocks are quality stocks with strong fundamentals for investors looking to take new positions. They advised new investors to wait for some more dip and start accumulation at around Rs 800 levels, keeping stop loss at Rs 735 each.
LIC also released its first result after being listed earlier this month. The company continues to trade at a discount to the issue price of Rs 949 per share. It reported a net profit of Rs 2,409 crore for the quarter ended March 2022, which was 17.41 percent lower compared to Rs 2,917.33 crore reported in the same period a year ago.
The company’s net profit for the entire fiscal year was reported as Rs 4,043.12 crore, which was 39.4 percent higher compared to Rs 2,900.56 crore in FY21.
Total sales in Q4 FY22 came in at Rs 2,11,471 crore, which was 11.64 percent higher compared to Rs 1,89,176 crore reported in the corresponding quarter last year.
The company also noted that net inflows rose to 1.44.158.84 crore during the reporting quarter. This marked an increase of 17.88 per cent from Rs 1,22,290.64 crore reported in Q4 FY21.
According to LIC, premium income for the first year rose to Rs 14,663.19 crore, up 32.65 percent year on year. From the renewal premium, income increased by 5.37 percent to Rs 71,472.74.05 crore, and through single premiums it increased by 33.70 percent to Rs 58,250.91 crore.
The 13-month persistence ratio — a key metric to assess the flow of policyholder renewal premiums — was 69.24 percent at the end of Q4 FY22, compared to 73.94 percent in the same period a year ago.
LIC’s much sought-after IPO (initial public offering) debuted at about 8 percent less than the issue price, in a tumultuous market, largely due to geopolitical tensions stemming from the Russia-Ukraine war.
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