Government insurance company LIC has once again made a huge contribution to the government treasury. This time, LIC has paid more than Rs 3,662 crore to the government as a dividend, the cheque of which was handed over to Nirmala Sitharaman.
How Much Stake Does The Government Have In LIC
The Government of India is the largest shareholder in LIC. The government alone has 610.36 crore shares out of 632.49 crore fully paid-up equity shares of LIC. It can also be said that 96.50 percent of LIC’s shares are currently with the Government of India. Earlier, the government had a total stake of 100 percent. Some of the stake was diluted in the IPO.
All companies give a part of their earnings to their shareholders as dividends. LIC also decided to deliver some of its earnings to the shareholders through dividends. As the largest shareholder, the Government of India received the biggest payment.
Total Dividend Payment Crossed 6,100 Crores
This latest dividend payment was approved in the annual general meeting of LIC shareholders. The AGM of the government insurance company was held on August 22. The company had announced in May that it would pay its shareholders a final dividend of Rs 6 per share for the last financial year. Before that, on March 1, 2024, the company had paid Rs 2,441.45 crore to the government as an interim dividend. In this way, LIC’s contribution to the government treasury in dividends for the last financial year exceeded Rs 6,100 crore.
LIC Stock Is Currently Trading At This Level
LIC’s IPO came in May 2022. The price band in the IPO was fixed at Rs 902 to Rs 949. The IPO got a good response, but its listing was poor. LIC’s share was listed at a discount of Rs 867. Later, the share price fell below Rs 600 at one point in market trading. During the last financial year, its price also rose during the spectacular rally in government shares, and for the first time, LIC shares managed to rise above the IPO level. Currently, one share of LIC is trading at Rs 1,071. On Thursday, the price fell by 1.24 percent.
