LIC shares jump to more than 4%

Shares of Life Insurance Corporation of India (LIC) rose 4.1 per cent to Rs 617.1 on the BSE during the day's trading on Monday. This jump in LIC's shares comes after news that it is looking to transfer nearly $22 billion from policyholders funds to another fund to issue dividend or bonus shares to win investor confidence. .

According to a report by news agency Reuters, LIL is planning to transfer about $22 billion from the policyholders' fund to another fund, which will be used to issue dividend or bonus shares to investors.

According to a Reuters report, surplus funds from non-participating funds can be transferred to shareholders' funds after getting approval from LIC's board. If this fund transfer takes place, it will increase the net worth of LIC by about 18 times from the current level, which is currently Rs 105 billion. With this, it will reach the first position among all insurance companies in terms of net worth.

What are non-participating insurance products -

In non-participating insurance products, insurance companies are not required to share their profits in the form of dividends to policyholders. Whereas in partnership products, insurance companies have to pay dividends to the policyholders.

What is the opinion of brokerage on LIC stock

According to data available on Trendline, the maximum target price for LIC shares by a brokerage is Rs 1,000, while the average target price is Rs 853.9, which is about 44.1 per cent higher than its current market price.

The shares of LIC were listed on May 17 this year at a discount of 8.62 per cent at Rs 867.20. Its price reached Rs 595.45 on October 27, which is about 31 percent less than its listing price. LIC shares closed at Rs 603.85 today, up 1.88% per cent.

Also Read – International Indigenous day 2022: Everything You Need To Know

Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER.