Shares of Life Insurance Corporation of India (LIC) suffered a lacklustre debut on stock exchanges

The Life Insurance Corporation of India (LIC) will host a board of directors meeting to evaluate and authorise the distribution of dividends, if any, according to a BSE filing. The meeting is set to take place on May 30.

After a successful initial public offering (IPO) that raised Rs 20,557 crore for the exchequer, the country’s largest insurer made a lacklustre debut on stock exchanges, listing at a discount of over 8%.

“The Life Insurance Corporation of India has informed BSE that a meeting of the Corporation’s Board of Directors is scheduled to be held on May 30, 2022, to consider, among other things, the following agenda items: To consider and approve the audited Annual Financial Results (standalone and consolidated) for the quarter/year ended on March 31, 2022, and payment of Dividend, if any,” LIC said in a BSE filing.

“As a result,” the country’s largest insurer said in a statement, “the trading window for dealing in shares of the Corporation shall remain closed from May 17, 2022, until 48 hours after the Board Meeting for consideration and approval of financial results for the quarter/year ended on March 31, 2022.”

WHAT EXACTLY IS A DIVIDEND?

The term dividend refers to the distribution of a portion of a company’s earnings or profits to shareholders who are eligible.

The dividend must be paid either in cash or in extra stock.

PRICE OF LIC SHARE

On Wednesday, the LIC share price was at Rs 829.30, up 0.55 percent on the BSE.

LIC shares closed at Rs 875.45 on the day of their listing, down Rs 73.55 from the IPO issue price of Rs 949.

After taking into account the markdown, LIC policyholders and retail investors received the shares at a price of Rs 889 and Rs 904 per share, respectively.

Through the IPO, the government sold approximately 22.13 crore shares, or a 3.5 percent stake in LIC.

Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), stated the stock’s poor performance on the bourses was due to unpredictably volatile market conditions, and advised investors to hold on to the shares for long-term value.

M R Kumar, Chairman of the LIC, stated, “It (the stock price) will rise as time goes on. I am confident that many people, particularly policyholders who missed out on the allotment, will purchase the shares (in the secondary market). I don’t understand why it should be tepid over an extended period of time “..