Life insurance giant, LIC on Monday announced offloading of a portion of its stake in pharma major, Sun Pharmaceuticals Industries. LIC has trimmed its stake by 2.002% in the pharma company. Both LIC and Sun Pharma shares witnessed a volatile tone in the day’s trading session before closing in the red. LIC has reduced its stake in a host of companies this month.
As per the regulatory filing, LIC’s shareholding in Sun Pharma has diluted from 16,85,66,486 to 12,05,24,944 equity shares. Thereby, LIC’s stake in Sun Pharma has been reduced from 7.026% to 5.024% of the paid-up capital of the latter.
On BSE, LIC shares closed at ₹684.15 apiece down by ₹4.80 or 0.70%. The shares had touched an intraday high of ₹690.25 apiece and a low of ₹682.45 apiece. Its market cap is around ₹4,32,724.72 crore. LIC is the largest insurer in India.
Meanwhile, Sun Pharma shares finished at ₹868.05 apiece lower by ₹6.55 or 0.75% on BSE. The shares touched the day’s high of ₹877.75 apiece and low of ₹856.60 apiece. Its market cap is around ₹2,08,269.16 crore.
This month, LIC has also offloaded a portion of its shares in companies like Gujarat Narmada Valley Fertilizers and Chemicals, Siemens, ICRA, and Mukand.
Earlier this month, LIC announced a final dividend of ₹1.50 per share having a face value of ₹10 each for fiscal FY22, subject to shareholders’ approval in AGM on September 27, 2022. The company has fixed August 26 as the record date for determining eligible shareholders.
As of March 31, 2022, the Indian Embedded Value (IEV) of LIC has been determined to be ₹5,41,492 crore as compared to ₹95,605 crore as of March 31, 2021, and ₹5,39,686 crore as of September 30, 2021. The IEV as of September 30, 2021, was significantly higher than the IEV of March 2021 due to the bifurcation of funds that was carried out by LIC pursuant to changes in the LIC Act during the FY 2021-22. The ROEV (Return on embedded value) for March 21, 2022, is 11.9% as compared to 36.9% for March 2021.
