
On Friday, the Finance Minister of India, Nirmala Sitharaman, received a dividend cheque of Rs 2,441.44 crore from the Life Insurance Corporation of India (LIC). The cheque was presented by LIC’s Chairperson, Siddharth Mohanty. The news of this transaction was announced by LIC through their official Twitter handle, ensuring that investors and users were informed about the dividend payout. The Finance Minister accepted the dividend cheque in the presence of Financial Services Secretary, Vivek Joshi. It is worth mentioning that last year, the government, as an investor in LIC, also received a dividend cheque of Rs 1831 crore.
Dividends are a portion of a company’s profits that are distributed to its shareholders. For instance, if a company declares a dividend of Rs 5 per share and an individual holds 1000 shares, they would receive Rs 5000 as dividend income.
According to a report from CNBC TV 18, the government’s stake in LIC, which is the largest insurance company in India, amounts to Rs 1.2 lakh crore. LIC shares have experienced a 9 per cent increase in the last month, providing investors with over 70 per cent returns within a year. Market experts attribute LIC’s strong performance to its positive market reception of the December quarter results for the fiscal year 2023-24. Omkar Kamtekar, a Research Analyst at Bonanza Portfolio, observed, “LIC’s net profit increased by 49 per cent in the third quarter results presented in February, leading to a positive market reaction.”
On March 1, LIC’s share price closed at Rs 1,034. Over the past three months, LIC has delivered a total return of 54 per cent to investors, with an annual return of the same percentage to its shareholders.
Coinciding with the dividend presentation, Finance and Corporate Affairs Minister Nirmala Sitharaman inaugurated LIC’s new international business centre at GIFT City, Gujarat, via virtual mode. This strategic move showcases LIC’s commitment to providing world-class insurance and financial services at the Gujarat International Finance Tec-City (GIFT City).