Latest news with #LifeInsuranceCorporationofIndia
Economic Times
16 hours ago
- Business
- Economic Times
NSDL raises Rs 1,201 crore from anchor investors ahead of IPO
National Securities Depository Limited garnered Rupees 1,201 crore from anchor investors before its initial public offering. The IPO opens for subscription today. Life Insurance Corporation of India is the largest anchor investor. Other global and domestic institutions also participated. The IPO is entirely an offer for sale. NSDL reported revenue of Rupees 1,420 crore in fiscal year 2025. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads NSDL Details and Grey Market Sentiment NSDL IPO: Financials and Valuation Should You Subscribe? National Securities Depository (NSDL) has raised Rs 1,201 crore from anchor investors ahead of its initial public offering (IPO), which opens for subscription today, July company allocated 1.5 crore equity shares to anchor investors at the upper end of the price band, which is set between Rs 760 and Rs 800 per share, according to data disclosed to the stock exchanges. Life Insurance Corporation of India (LIC) emerged as the largest anchor, picking up 12% of the total anchor book. LIC invested Rs 144 crore and was allotted nearly 18 lakh global and domestic institutions, Small Cap World Fund invested Rs 100 crore, accounting for 8.33% of the anchor allocation. Fidelity Funds – India Focus Funds picked up 5.41% with a Rs 65 crore investment, followed by Ashoka White Oak India Opportunities Fund (4.5%; Rs 54.1 crore), SBI Banking undefined Rs 48.59 crore), and Nippon Life India Trustee (3.66%; Rs 44 crore).Other notable investors include the Abu Dhabi Investment Authority (ADIA) – Monsoon and Amundi Funds New Silk Road, who together invested Rs 14 crore, amounting to 1.17% of the total mutual funds were also prominent participants. Around 53 lakh shares, or 35.27% of the anchor portion, were allotted to 12 domestic mutual funds across 22 schemes. These included SBI MF, ICICI MF, HDFC MF, Aditya Birla Sun Life, and JM Financial NSDL is India's first and largest securities depository. The entire issue is an offer for sale (OFS), which means the company will not receive any proceeds from the IPO is entirely an offer for sale (OFS), meaning NSDL will not receive any proceeds. The grey market premium (GMP) stood at around 16% ahead of the issue opening, indicating moderate investor reported a revenue of Rs 1,420 crore in FY25, marking a 12% increase year-on-year. Profit after tax rose 25% to Rs 343 crore. The company posted an EBITDA margin of 34.71%, reflecting strong operational has also diversified through its subsidiaries — NSDL Database Management (NDML) and NSDL Payments Bank — expanding into e-governance, regulatory technology, and digital the upper end of the price band, the stock is valued at a P/E of 46.62x and P/B of 7.98x based on FY25 earnings. This compares with peer Central Depository Services (India) Ltd (CDSL), which trades at a higher P/E of 60.43x and P/B of 18.08x. However, NSDL has a larger share of demat assets and a broader service have largely recommended a 'Subscribe' rating to the NSDL IPO for long-term investors. Anand Rathi and Canara Bank Securities cite NSDL's near-monopoly scale in the depository ecosystem, healthy financials, wide product coverage, and strategic relevance to India's capital market infrastructure as key positives.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
2 days ago
- Business
- Business Standard
LIC inks $1 billion in bond derivatives as hedging gains traction
Life Insurance Corporation of India (LIC) has signed $1 billion worth of forward rate agreements (FRAs) with major Wall Street banks, marking a major push into bond derivatives. The move reflects the insurer's growing use of hedging tools as it looks to protect long-term returns amid rising market volatility and falling equity valuations. What's the latest According to a Bloomberg report, LIC has entered into FRA contracts with JPMorgan Chase & Co. and Bank of America Corp, locking in future bond yields to guard against declining interest rates. The $1 billion in FRA deals represents a sharp increase in LIC's derivatives activity, accounting for 38 per cent of the $2.6 billion cleared in India since May. Numbers game Share of total FRA trades since May: 38 per cent LIC asset base: $630 billion Loss in equity portfolio (Jun 30–Jul 25): ₹46,000 crore Portfolio value drop: ₹16.10 trillion → ₹15.64 trillion Equity portfolio value gain since Apr low: ₹1.94 trillion Nifty 50 index (Jul 25): 24,837 Sensex index (Jul 25): 81,463.09 What it means LIC's deepening foray into bond hedging marks a significant shift for India's largest institutional investor, indicating that even state-backed entities are now actively mitigating interest rate risk. As government bond auctions draw stronger demand and financial markets experience higher volatility, large investors like LIC are turning to derivatives to stabilise returns and manage risk exposures. This also points to increasing sophistication in India's financial risk management practices, especially among long-term asset holders. Backstory LIC began exploring bond derivatives in late 2024, initially executing small trades earlier this year. As market uncertainty grew, it gradually expanded its hedging strategy to include FRAs. Forward rate agreements allow the insurer to lock in interest rates for future bond purchases, with banks assuming the price risk. This hedging mechanism offers a buffer against rate cuts, which can reduce bond yields and impact LIC's long-term income streams. LIC equity portfolio losses At the same time, LIC has faced losses in its stock investments this month. As earlier reported by Business Standard, estimates show the market value of LIC's equity portfolio declined by ₹46,000 crore between June 30 and July 25, 2025, as benchmark indices Nifty 50 and BSE Sensex fell 2.6 per cent to 24,837 and 81,463.09, respectively. LIC's 322-stock portfolio declined from ₹16.10 trillion to ₹15.64 trillion over that period. Still, the portfolio is ₹1.94 trillion higher than it was in early April, when markets hit their lowest point in a year.
Time of India
4 days ago
- Politics
- Time of India
Ex-CM suggests using Rs 2 lakh crore unclaimed money for disaster relief
1 2 3 Shimla: Former Himachal chief minister Shanta Kumar has suggested that the central govt should come up with a law for the utilisation of Rs 2 lakh crore unclaimed money lying in various banks, insurance policies, and employee provident fund (EPF) accounts of those who died without any legal heir to claim it. He added that this money could be used for natural disaster relief, including in Himachal. The monsoon disaster in Himachal Pradesh should be declared a national disaster, and out of this unclaimed Rs 2 lakh crore, at least Rs 20,000 crore should be given to the Himachal govt for monsoon disaster relief, said the former chief minister on Saturday. He added that by making a law, this money would be put to good use as it is now the country's money, which was lying in accounts for years. "There can be no better place for its good use than in a natural disaster like Himachal," he added. The former chief minister has demanded that the Himachal govt and all the MPs from the state raise this issue strongly with the central govt. He stated that according to a report, Rs 42,270 crore is unclaimed in various banks across the country, Rs 32,273 crore in post offices, Rs 8,500 crore in EPF accounts, and Rs 20,062 crore in the Life Insurance Corporation of India. He added that much more such unclaimed money is lying with the govt.
Hans India
6 days ago
- Sport
- Hans India
LIC zonal carom, chess trials end
Rajamahendravaram: The South Central Zonal Carrom and Chess Selection Trials for the year 2025–26, organised by the Life Insurance Corporation of India (LIC), concluded successfully at Surya Gardens Function Hall here on Thursday. The two-day event was hosted by the LIC Rajahmundry Division and witnessed the participation of 82 players from Andhra Pradesh, Telangana, and Karnataka. The trials were aimed at selecting players to represent the South Central Zone at the upcoming All India LIC Games. The event showcased high levels of sporting skill and competitive spirit across both Carrom and Chess disciplines. Satyanarayana Sahu, Senior Divisional Manager (SDM) of LIC Rajahmundry Division, attended the valedictory ceremony as the chief guest. M Purnachandra Rao, Manager (Personnel & Industrial Relations), presided over the function. Former world champion S Appoorwa and former national champion P Nirmala were present as special guests. Suresh Jayaraman and DVSY Sharma from the South Central Zonal Office attended the event as official observers. The matches were conducted under the supervision of Shaik Abdul Jaleel, an International Carrom Referee, and GV Kumar, an International Chess Arbiter. In the Carrom Men's final, DN Shivadas from Bangalore emerged as the champion, defeating B Ajay Kumar. In the Women's final, S Appoorwa from Hyderabad clinched the title by beating P Nirmala (Hyderabad). The event concluded with the finalisation of Men's and Women's teams in both Carrom and Chess, who will now represent the South Central Zone in the forthcoming All India LIC Games. The success of the trials wasmade possible through the enthusiastic support and dedicated efforts of the officers and staff of the LIC Rajahmundry Division.
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Business Standard
7 days ago
- Business
- Business Standard
Govt to pocket ₹7.3k-cr dividend from insurance behemoth LIC; details here
The Government of India is set to receive a whopping ₹732.43 billion from the life insurance behemoth, Life Insurance Corporation of India (LIC), as a dividend payout. Notably, the country's largest insurer has announced that its board has recommended paying a final dividend of ₹12 per equity share for the financial year 2024–25 (FY25). "The board of directors of the Life Insurance Corporation of India has recommended a final dividend of ₹12/- per equity share for the financial year ended March 31, 2025, subject to declaration by Members of the Corporation in the ensuing Annual General Meeting (AGM) to be held on Tuesday, August 26, 2025," LIC said, in an exchange filing. Further, the company has fixed July 25, 2025 as the record date for determining the eligibility of members of the Corporation for the proposed final dividend. Thus, the eligible shareholders will be entitled to receive ₹12 per share in accordance with the said announcement. According to data available on the BSE, the Government of India currently owns 96.50 per cent stakes in LIC, which amounts to 6,10,36,22,781 equity shares. Taking the above announcement into consideration, the government is set to receive - 6,10,36,22,781 × ₹12 (total number of shares × dividend per share) = ₹73,24,34,73,372, or approximately ₹7,324.35 crore (including taxes if there are any), as the dividend payout from LIC, if approved at the AGM. LIC Dividend history That said, this is not the first time that the insurance giant has announced dividend rewards for its shareholders. Since their D-street debut on May 17, 2022, LIC has so far announced a total dividend of ₹26.50 per share, which includes a final dividend of ₹12 per share for FY25, a final dividend of ₹6 for FY24, an interim dividend of ₹4 per share in 2024, a final dividend of ₹3 in 2023, and a dividend of ₹1.50 apiece in 2022. About Life Insurance Corporation of India (LIC) Established in 1956, Life Insurance Corporation of India (LIC) is a state-owned public sector enterprise (PSE) and the largest insurance services provider in India. The company is registered with the Insurance Regulatory and Development Authority of India (IRDAI) and operates in both domestic and international life insurance markets. LIC offers a range of life insurance products, including individual, group, pension, annuity, and health plans. The corporation manages operations through a network of zonal, divisional, branch, and satellite offices across India and abroad. Last check, LIC shares were quoted trading at ₹922 per share, merely 0.09 per cent down from its previous close of ₹922.80 apiece on the BSE. The company has a market capitalisation of ₹5,83,164.79 crore on the BSE, as of July 25, 2025.
