BackLIC to pay final dividend of 30% from FY23 profits; check details of record date, AGM, others
LIC announced the final dividend from the net profits in FY23 for its shareholders. The insurer is set to pay 30% dividend which is in addition to 15% dividend paid earlier in August last year.
PremiumLife Insurance Corporation of India (LIC) has declared a dividend of ₹3 per share for its shareholders in a meeting held on Wednesday. LIC also posted its fourth quarterly earnings for FY23.
As per the regulatory filing, LIC recommended a final dividend of ₹3 per equity share having a face value of ₹10 each for the financial year ending March 31, 2023.
Also, LIC set July 21, 2023, as the record date to determine the eligibility for dividend payment.
The dividend is subject to declaration by Shareholders in AGM.
LIC's annual general meeting (AGM) will be held on August 22, 2023. After the approval in this AGM, LIC will pay the final dividend for FY23.
Read here: LIC reports impressive 447.5% growth in Q4 consolidated PAT to ₹13,191 crore; declared dividend
Those shareholders will be eligible for ₹3 dividend whose name appear in the registers after the business hours of July 21, 2023.
At the current market price, LIC's annual dividend yield is 0.25%.
On BSE, the stock ended at ₹593.55 apiece up by 0.61% on Wednesday. In past five trading sessions, LIC shares jumped by 3.2% on the exchange. In a month, the upside is around 8.3%.
Last year, in August, LIC announced a dividend of ₹1.50 per share.
LIC listed on exchanges in May last year after launching the highest initial public offering (IPO) of ₹21,000 crore in Indian market.
Read here: Leading life insurer LIC cuts stake in NHPC to 3.186% from earlier 5.203%
Typically, dividends are a form of incentive that is distributed by a listed company from their profits to shareholders. Generally, when a company pays a proportion of its profit as a dividend, any amount which is not distributed as dividends are put in the free reserves and surplus of that company.
In its financial results, LIC said, its solvency ratio for the fiscal year stood at 1.87 before considering the final dividend of ₹3 per share and will be 1.86 (if final dividend included) as against 1.85 for the year ended March 31st 2022.
Overall, in FY23, LIC's total premium income stood at ₹4,74,005 crore up by 10.90% YoY from ₹4,27,419 crore in FY22. FY23 profit was at ₹36,397.40 crore as compared to ₹4,043.12 crore for the previous year.
With the increase in profit, net VNB margin and IEV, LIC said, it is well positioned to continue its growth journey, in the service of the nation and its citizens.
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