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. This payment has been made in the form of dividend, the cheque of which was handed over to Nirmala Sitharaman.
The government has this much stake in LIC
Actually, the Government of India is the biggest shareholder in LIC. Currently, 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 shares of LIC are currently with the Government of India. Earlier, the government had a 100 percent stake. Some stake was diluted in the IPO.
All companies give a part of their earnings to their shareholders in the form of dividends. LIC also decided to give a part of its earnings to shareholders in the form of dividends and being the largest shareholder, the biggest payment went to the Government of India.
Total dividend payment crossed Rs 6,100 crore
This latest payment of dividend was approved in the annual general meeting of LIC shareholders held recently. The AGM of the government insurance company was held on 22 August. The company had announced in May that it would pay a final dividend of Rs 6 per share to its shareholders for the last financial year. Prior to that, on March 1, 2024, the company had paid Rs 2,441.45 crore to the government as interim dividend. In this way, LIC’s contribution to the government treasury in the form of dividend 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 of 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, in the market trading, the share price had fallen below Rs 600 at one time. During the last financial year, its price also rose in the spectacular rally in government shares and for the first time, LIC shares managed to get above the IPO level. Currently, one share of LIC is trading at Rs 1,071. On Thursday, the price fell by 1.24 percent.
Also read: RBI filled the government’s treasury, gave a record dividend of Rs 2.11 lakh crore for the financial year 2024
