LIC cuts shareholding in M&M to 4.2% from 6.2%
Premium- The Life Insurance Corporation of India (LIC) has disclosed a reduction in its shareholding stake in Mahindra & Mahindra Limited from 6.217% to 4.201% of the company's paid-up capital.
The Life Insurance Corporation of India (LIC) has disclosed a reduction in its shareholding stake in Mahindra & Mahindra Limited from 6.217% to 4.201% of the company's paid-up capital. Due to the reduction in its stake, LIC's equity share ownership in M&M has decreased from 10,48,01,511 to 7,98,28,278 shares.
LIC has said in a regulatory filing that “Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Corporation's shareholding in "MAHINDRA & MAHINDRA LTD" has diluted from 10,48,01,511 to 7,98,28,278 Equity Shares decreasing its shareholding from 6.217% to 4.201 % of the paid-up capital of the said Company."
The stake drops by 2% from 21.12.2020 to 08.08.2022, which is the anticipated time frame for the acquisition's completion. And the open market sale is the type of consideration, according to LIC, when the stake is reduced. The cost of acquisition, or the price at which the shares are acquired, went from 8.430% to 6.421%, a decrease of 2.009%, between the dates 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, control, and/or number of shares acquired is 6.421% for M&M.
The largest life insurer in India, LIC, witnessed a more than double increase in new business premium income in July of this year, reaching ₹29,116.68 crore. According to IRDA statistics, 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 substantial increase in new business premium income in July, rising by 91% to ₹39,078.91 crore. LIC increased its market share from 65.42% at the end of June to 68.57% until July 2022. According to IRDA statistics, the public sector giant's market share has increased from the 65.11% recorded in the same period of last year.
The shares of LIC closed today at ₹682.90 apiece level, up by 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 Limited closed today at ₹1,269.00 apiece, down by 0.60% from the previous close.
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