State-run insurance coverage behemoth Life Insurance coverage Company of India (LIC)’s board will meet at the moment to think about fee of dividend, if any, and approve the audited Annual Monetary Outcomes (standalone and consolidated) for the quarter/12 months ended on March 31, 2022.
LIC share worth are down greater than 15% from its IPO difficulty worth. The shares of the insurance coverage behemoth made their inventory market debut earlier this month on Could 17, 2022.
Analysts consider that the life insurance coverage firm will attempt to announce an excellent dividend for shareholders in view of the lacklustre debut of the insurer within the inventory market.
“LIC didn’t pay any dividends within the final monetary 12 months, so there are excessive possibilities that the corporate may declare an excellent dividend this 12 months, thus making it an excellent dividend play,” mentioned Santosh Meena, Head of Analysis, Swastika Investmart Ltd.
LIC IPO, India’s largest until date, had closed with practically 3 occasions subscription, predominantly lapped up by retail and institutional consumers, however international investor participation remained muted. The worth vary for LIC’s mega difficulty was set between ₹902 and 949 per share. The federal government offered over 22.13 crore shares or a 3.5% stake in LIC by means of the preliminary share sale.
“We consider that LIC is a good funding alternative within the brief to medium-term contemplating its robust market presence, enchancment in future profitability because of the modifications in surplus distribution norms and powerful sector development outlook. LIC can carry out nicely when we’ve got a bounce out there and optimistic efficiency within the insurance coverage sector” mentioned Vinod Nair, Head of Analysis at Geojit Monetary Companies.
Supply: Live Mint