About the Company: Life Insurance Corporation of India (LIC)
LIC (Life Insurance Corporation of India) is India’s largest life insurance provider, founded in 1956. With over 250 million policyholders and ₹45+ lakh crore in assets under management, LIC plays a central role in India’s financial sector. The company was listed on the stock exchanges in May 2022 and is one of the top PSU giants in the country.
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Market Cap: ₹5.8 Lakh Crore+ (as of July 22, 2025)
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Listed On: NSE, BSE
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Stock Symbol: NSE: LICI
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Sector: Insurance, PSU
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Ownership: 96.5% held by Government of India
💸 LIC Announces ₹12 Final Dividend for FY25
LIC has officially declared a ₹12 per share final dividend for the financial year 2024-25. The announcement comes ahead of the company’s Annual General Meeting (AGM), showing strong performance and intent to reward shareholders.
🔹 Dividend Snapshot:
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Dividend Type: Final Dividend
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Dividend Amount: ₹12 per equity share
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Face Value: ₹10
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Ex-Date: 25 July 2025
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Record Date: Likely on or around 26 July 2025
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Dividend Yield: ~1.05% (at current price ₹1145)
📅 Important Dates to Remember
| Event | Date |
|---|---|
| Ex-Dividend Date | 25 July 2025 (Thursday) |
| Record Date | Likely 26 July 2025 |
| AGM Date | To be announced soon |
| Dividend Payout | Within 30 days from declaration |
💡 Investors must hold LIC shares in their demat account on the record date to be eligible for the dividend.
📊 LIC Share Price Movement Ahead of Dividend
As of 22 July 2025, LIC shares were trading at around ₹919.80 on NSE, up nearly 22% in the last 6 months.
📈 Recent Price Trend:
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1 Month: +4.8%
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3 Months: +11.2%
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6 Months: +21.7%
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YTD: +28.5%
The announcement of a ₹12 dividend is expected to keep positive momentum in the stock, as dividend-paying PSU stocks have attracted high institutional and retail attention in 2025.
🔍 What Does This Mean for Investors?
✅ Positive Sign of Profitability:
LIC’s dividend announcement reflects improved profitability and steady cash flows post listing.
✅ Strong PSU Dividend Theme:
PSUs like ONGC, NTPC, and Coal India have already announced dividends this season. LIC joining this trend increases its attractiveness for long-term income investors.
✅ Investor Strategy:
Holding LIC shares before the ex-date ensures you receive the ₹12 dividend. However, stock prices may adjust downward on ex-date to reflect the payout.
📌 Key Highlights for Retail Traders
🔸 Dividend-Based Trading Opportunity
Short-term traders can capitalize on momentum leading up to the ex-date.
🔸 Long-Term Value Buy
LIC remains undervalued based on embedded value and insurance sector potential.
🔸 PSU Re-Rating in Progress
LIC’s dividend plus stock repurchase programs align with broader PSU value unlocking in FY25.
📢 LIC’s Dividend in Context: FY25 Performance
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Net Profit FY25: ₹42,900 crore (↑18% YoY)
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New Business Premium Growth: +13% YoY
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Embedded Value (EV): ₹6.7 lakh crore
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Solvency Ratio: 1.88 – Well above IRDAI threshold
The robust financial metrics show LIC’s capability to sustain healthy dividends while expanding its insurance footprint.
📈 LIC: Analyst Views & Market Sentiment
🔍 Brokerage Ratings:
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Motilal Oswal: Buy, TP ₹1350
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Jefferies: Hold, TP ₹1200
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ICICI Securities: Buy, TP ₹1320
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Domestic Funds: Increasing allocation in LIC and other PSU insurers
📊 With LIC’s stock still trading at a P/E of ~9.2, many believe there is strong upside potential as private players trade at 20x+.
🏦 Shareholding Pattern (As of June 2025)
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Government of India: 96.5%
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Retail Investors: 1.6%
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Domestic Institutions: 1.2%
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Foreign Institutions: 0.7%
The government is gradually reducing stake via OFS and monetization, making LIC a prime PSU dividend candidate.
🧠 Final Takeaway: Should You Buy LIC for Dividend?
LIC’s ₹12 dividend is not just a bonus — it reflects the company’s rising profitability and the government’s PSU revival plan. For long-term investors, LIC offers:
✔️ Attractive dividend
✔️ Strong fundamental base
✔️ Steady re-rating potential
✔️ Underpenetrated insurance sector growth
Whether you’re a passive income seeker or a PSU growth investor, LIC deserves a place in your dividend portfolio.
📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
