Life Insurance Corporation of India (LIC) has disclosed reduction of its stake in Mahindra & Mahindra Ltd. to 4.201% from 6.217% of the paid-up capital of the company. Due to reduction in its stake, LIC’s equity share ownership in M&M has come down from 10,48,01,511 to 7,98,28,278 shares.
LIC in a regulatory filing has said that “As per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is to inform that the Corporation’s shareholding in “Mahindra & Mahindra Limited” has been reduced from 10,48,01,511 to 10. ,48,01,511. 7,98,28,278 equity shares reduced their shareholding from 6.217% to 4.201% of the paid-up capital of the said company.
The stake fell by 2% from 21.12.2020 to 08.08.2022, which is the estimated time frame for completion of the acquisition. And open market sales are the type of consideration when the stake goes down, according to LIC. The cost of acquisition, or the price at which the shares have been acquired, went up from 8.430% to 6.421%, a decrease of 2.009%, at the average cost of December 21, 2020 and August 8, 2022, at an average cost of INR. 889.95 per share. According to a regulatory filing, the percentage of shareholding, controlling and/or number of shares acquired for M&M is 6.421%.
Largest life insurer in India, LICNew business premium income witnessed more than double growth in July this year, reaching 29,116.68 crores. As per IRDA data, Life Insurance Corporation earned 12,030.93 crore in the year-ago period. According to information made public by the Insurance Regulatory and Development Authority (IRDA) on Tuesday, life insurance firms including LIC saw a significant increase in new business premium income in July with a growth of 91 per cent in July. 39,078.91 crore. LIC increased its market share from 65.42% at the end of June to 68.57% by July 2022. According to IRDA data, the market share of the public sector giant has increased from 65.11% recorded in the same period last year.
LIC shares closed today 682.90 each level, up 0.43% from the previous close. On a YTD basis, the stock has fallen 21.98% so far in 2022. Whereas, the shares of Mahindra & Mahindra Ltd closed today 1,269.00 each, down 0.60% from the previous close.
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