Ahead Of IPO, Paid Up Capital Of LIC Stands At Rs 6,324 Crore
LIC IPO Latest Update: LIC had paid a dividend of Rs 2,610.75 crore in 2019-20 to the Government of India from the profits of 2018-19, according to Minister Karad.
New Delhi: Minister of State for Finance, Bhagwat Karad said that the paid-up capital of the Life Insurance Company (LIC) was Rs 6,324.99 crore as of December 31, 2021. Karad was replying to a question raised in Rajya Sabha on Tuesday where he mentioned it.
According to media reports, the central government on an application made by the LIC allowed the utilisation of its free reserves for increasing its paid-up capital. Karad said, “As a result, the paid-up capital of LIC increased to Rs 6,324.99 crore, as on 31.12.2021.”
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He also said that LIC had paid a dividend of Rs 2,610.75 crore in 2019-20 to the Government of India from the profits of 2018-19.
LIC IPO is set to be India’s biggest IPO till date. The company, which is a household name in India, has over 2,000 branches and over 1 lakh employees. In the Budget 2022, Finance Minister Nirmala Sitharaman said that the IPO is set to hit the bourses soon.
According to media reports, LIC IPO will list before March 31, 2022, in the current financial year. The money raised through this IPO will play a major role in helping the government meet its disinvestment target for the year.
The government, according to Mint, will retain the majority stake in the firm. And 10 per cent of the shares in LIC IPO have been reserved for the policyholders. The company is the sixth-largest company in India, as per the total assets held by the firm. Also, when the global life insurers were contracting during the pandemic, LIC saw a monumental jump in its premium.
The company saw annual growth of 8 per cent between 2019 and 2021, where other insurers contracted 3.1 per cent.
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