Shares of this largest insurance provider company surged 6 percent in Friday’s trading session after they received the government grants to achieve 25 percent MPS in 10 years.
With a market capitalization of Rs. 5,05,209 crores, the shares of Life Insurance Corporation of India (LIC) started Friday’s trading session on a higher note at Rs. 807 compared to its previous close of Rs. 764. The shares hit a high of Rs. 821, gaining around 6 percent, also the company’s fresh 52-week high and currently trading at Rs. 795 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing mentioned the government has granted a one-time exemption for the company to achieve a 25 percent Minimum Public Shareholding (MPS) within 10 years.
The company was listed in May 2022, for which the government had sold over 22.13 crore shares equivalent to a 3.5 percent stake in LIC, through an Initial Public Offering (IPO). According to the BSE data, the government currently holds a 96.5 percent stake in the company.
Coming onto the company’s financial statements, the revenue increased by around 7 percent from Rs. 1,89,300 crores in the June quarter to Rs. 2,02,221 crores during the September quarter. On a contrasting note, the net profits declined by 16 percent from Rs. 9,544 crores to Rs. 7,925 crores during the same timeframe.
LIC has the largest individual agent network among life insurance entities in India, comprising approximately 13.47 lakh individual agents as of the recent quarter. It has 3,636 branch offices and satellite offices in India, covering 92 percent of all districts in India.
The company’s Assets Under Management (AUM) as of September 2023, was Rs. 47,43,389 crores, a growth of 10.47 percent compared to the same period last year.
Headquartered in Mumbai, LIC was incorporated in 1956. The company is the largest insurance provider in India. The company offers participating insurance products and non-participating products like unit-linked insurance products, saving insurance products, term insurance products, health insurance, annuity and pension products.
Written By Vaibhav Patil
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