Shares of this large-cap multiline insurance stock dipped up to 3 percent in Thursday’s trading session after the company received a showcause notice for non-payment of tax worth Rs 1,728.86 crores. Keeping the negative movements aside, the company’s stock has gained more than 20 percent in the past six months.
With a market capitalization of Rs 62,800 crores, the stocks of ICICI Lombard General Insurance Company Limited opened their trading session on Thursday at Rs 1,283.95 and currently trade at Rs 1,278.
The company’s scrip witnessed an intra-day low of Rs 1,266 representing a fall of around 3 percent compared to the previous close of Rs 1,302.75 apiece.
Such bearish sentiments around the company’s stock were witnessed after a BSE filing dated 27th September 2023 mentioning the Directorate General of GST Intelligence (Pune Zonal Unit) giving a showcause notice to ICICI Lombard alleging a tax demand of Rs 1,728.86 crores under Section 73(1) of the Central Goods and Services Tax Act, 2017
The above-mentioned action pertains to non-payment of GST on the Co-insurance premium accepted as a follower in case of coinsurance transactions.
Moreover, it also consists of non-payment of GST on re-insurance commission accepted on the reinsurance premium ceded to various Indian and Foreign reinsurance companies during the period from July 2017 to March 2022.
Having a look at the recent financials of the company, the basic business indicators such as the operating revenues as well as net profits have seen positive movements with the former increasing from Rs 14,266 crores during FY21-22 to Rs 17,875 crores during FY22-23, and, the net profits, keeping the timeframe the same, took a shift from Rs 1,271 crores to Rs
1,729 crores.
The latest shareholding pattern of the company, as per the quarter ended June 2023, portrays the Promoters holding a 48.01 percent stake, and the Foreign Institutional Investors (FIIs) holding a considerable stake of 22 percent in the company.
ICICI Lombard General Insurance Company Limited covers general insurance of various segments such as Marine, Fire, and Liability. The company’s product portfolio comprises health insurance, motor insurance, and many more. Geographically, the company has sole operations within India.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
