LIC Board Says Yes To Infusion Of Rs 25 Crore In LIC Mutual Fund Asset Management Limited

The share price of Life Insurance Corporation of India (LIC) remained on investors' watchlist on Monday after the company informed via an exchange filing today that the company's Board has approved infusion of the share capital of Rs.25 crore in LIC Mutual Fund Asset Management Limited on a preferential basis.

LIC share price was down 0.23% at Rs 772.00 at 3:13 pm IST. At this price, the company has a market capitalization of Rs 4,88,289.82 crore. The stock has a 52 Wk High and 52 Wk low of Rs 803.35 and Rs 530.20 respectively.

Launched in 1989, the fund house was ranked the sixth biggest AMC with assets of nearly Rs 50,000 crore as of November 2009. However, its assets fell down to Rs 19,000 crore by June 2023.

As of today, LIC owns a 45% stake in the company, followed by LIC Housing Finance at 39.30%, GIC Housing Finance at 11.70% and Union Bank of India at 4%.

On Monday, the insurance company said that the Corporation has received a communication/ demand order for the collection of GST along with interest and penalty for Telangana state. The said order is appealable before the Appellate Joint Commissioner (ST), Hyderabad Rural Division.

In a separate exchange filing the company informed that Pawan Agrawal, Company Secretary & Compliance Officer (Key Managerial Personnel) of the Corporation, will demit the office of Company Secretary and Compliance Officer of the Corporation with effect from the close of business hours of January 18, 2024, upon retirement from full-time active service.

Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors in their meeting held today, has approved the appointment of Anshul Kumar Singh as the Company Secretary and Compliance Officer (Key Managerial Personnel) of the Corporation w.e.f., January 19, 2024.

In its Q2 results, the insurance giant posted a 50% decline in net profit at Rs 7,925 crore compared to Rs 15,952 crore a year ago. During this period, LIC's net premium income declined 19% to Rs 1.07 lakh crore. The insurer's gross non-performing assets (GNPAs) stood at 2.43% compared to 5.60% in the prior year.