Life Insurance Corporation of India (LIC) Has not paid any dividend to the government in the last financial year. The government told in the Rajya Sabha on Tuesday that during this period the company used free reserves to increase its paid-up capital, which has now increased to ₹ 6,325 crore.
Union Minister of State for Finance Bhagwat Karad said in Rajya Sabha that the insurance giant, which is about to bring the IPO, has paid ₹2,610.75 crore to the government as dividend related to profits earned in 2018-19. Done in the year 2019-20.
Quoting data received from LIC, Minister of State for Finance Bhagwat Karad said that no dividend has been paid in 2020-21 as the Insurance Regulatory and Development Authority of India (IRDAI) has given insurers to the financial year ending March 31, 2020. was directed to avoid payment of dividend relating to the year.
The minister said that the IRDAI directive came in the wake of the coronavirus pandemic so that companies can reserve capital to meet contingent obligations (if any).
In a written reply, Karad said, “The government, on an application made by LIC, allowed it to use the free reserves to increase the paid up capital. As a result, LIC’s paid-up capital 31 It has increased to ₹ 6,324.99 crore by December, 2021.
The central government is expected to file draft papers for LIC’s mega IPO with market regulator SEBI this month. With this, the embedded value of LIC is estimated to be more than ₹ 5 lakh crore.