LIC presents dividend cheque of ₹1,831 crore to FM Nirmala Sitharaman

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Life Insurance Corporation of India (LIC) on Thursday presented a dividend cheque of ₹1,831.09 crore to Finance Minister Nirmala Sitharaman. LIC Chairman Siddhartha Mohanty presented the dividend cheque as the government's share of dividend in the presence of Department of Financial Services Additional Secretary MP Tangirala, the insurer said in a statement. The dividend was approved by the shareholders in the annual general meeting held on August 22, it said.

LIC has completed 67 years since its incorporation and beginning with an initial capital of ₹5 crore in 1956, LIC as of March 31, 2023, has an asset base of ₹45.50 lakh crore with a life fund of ₹40.81 lakh crore, it noted. Despite two decades of opening up of the insurance sector, LIC continues to be the market leader in the Indian Life Insurance market, the statement claimed. LIC listed on exchanges in May last year after launching the highest initial public offering (IPO) of ₹21,000 crore in Indian market.

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 that is not distributed as dividends is put in the free reserves and surplus of that company. In other news, LIC on Thursday said it has sold 2 per cent of its holding in Sun Pharma for ₹4,699 crore via open market sale.