LIC Declares ₹12 Final Dividend for FY25: How Govt Earns ₹7,324 Crore
The Government of India is set to receive ₹7,324
crore as a final dividend from the Life Insurance Corporation of
India (LIC) for the fiscal year 2024–25 (FY25). This stems from LIC’s board
recommending a dividend of ₹12 per equity share—subject to approval at
the Annual General Meeting (AGM) scheduled for August 26, 2025. With the
record date for eligibility fixed at July 25, 2025, shareholders
of record then will be entitled to receive this dividend. Since its listing in
May 2022, LIC has cumulatively disbursed ₹26.50 per share in dividends,
including payouts for FY22 through FY24. In the broader context, LIC’s
contribution significantly bolstered the government’s non-tax revenue via
dividends from public sector undertakings (PSUs). In FY25, LIC’s dividend rose
from ₹6,104 crore in FY24 to ₹7,324 crore in FY25. This highlights LIC’s
enduring role as a key financial pillar and government revenue contributor.
1. Background: LIC & Its Dividend Trajectory
Founded in 1956, the Life Insurance Corporation of India
(LIC) is a state-owned behemoth and the largest life insurer in the
country, operating under the regulatory supervision of IRDAI. Since its Initial
Public Offering (IPO) and listing in May 2022, the government has benefited
from multiple dividend rounds.
Dividend history per share post-listing:
- ₹1.50
(FY22)
- ₹3
(FY23 final)
- ₹4
(FY24 interim)
- ₹6
(FY24 final)
- ₹12
(FY25 proposed final)
Cumulatively, this amounts to ₹26.50 per share in
dividend payouts to shareholders, with the government capturing the lion’s
share due to its majority ownership.
2. FY25 Dividend Details & Government Takeaway
The board of directors of LIC has recommended a final
dividend of ₹12 per equity share for FY25, pending approval at the AGM
on August 26, 2025.
The record date for determining eligibility is fixed
at July 25, 2025. Shareholders holding LIC shares on that day will
receive the dividend.
Given the government’s 96.50% equity ownership—comprising
approximately 6,10,36,22,781 shares—the expected dividend payout stands
at ₹7,324.35 crore, effectively rounded to ₹7,324 crore.
3. Economic Significance & PSU Dividend Landscape
This dividend forms part of the government’s broader non-tax
revenue, traditionally supplemented by contributions from PSUs (public
sector undertakings). In FY25, 52 listed PSUs declared dividends, though
total government receipts from listed entities slightly dipped to ₹82,995
crore, compared to the previous year.
LIC’s dividend grew significantly—rising from ₹6,104 crore
in FY24 to ₹7,324 crore in FY25—highlighting its growing role in strengthening
government revenues.
4. Market Reactions & LIC Performance Indicators
LIC’s share price activity around the time of the
dividend announcement varied:
- As
of July 24, 2025, shares traded at ₹918.45 on BSE, down
slightly (0.39%) amid profit booking and pre-AGM anticipation.
- NDTV
Profit, quoting data from late May 2025, reported the government’s 96%
stake entitling it to ₹7,324 crore in dividend.
5. Broader Perspective: LIC’s Role in Economy &
Stability
The magnitude of this dividend underscores LIC’s status as
more than an insurance provider—it plays a pivotal economic and strategic role:
- Financial
stability: Even amid market fluctuations, LIC continues to distribute
sizeable dividends, reflecting strong earnings and asset base.
- Institutional
relevance: With its diversified portfolio and deep market presence,
LIC offers a stable revenue channel for the government.
- Policyholder
trust: Its consistent dividend payouts reinforce public confidence and
underscore LIC’s long-term value to multiple stakeholders.
6. What to Watch: AGM Outcome & Future Trends
Key upcoming events:
- AGM
on August 26, 2025: Final approval required to confirm the dividend
payout and record its reflection in government receipts.
- Broader
PSU dividends: As FY25 dividend declarations roll in—especially from
larger PSUs like Coal India, ONGC, and SBI—fiscal planning will factor
into overall receipts from non-tax revenues.
- Market
sentiment: LIC’s investor sentiment may evolve post-AGM and dividend
payout, influenced by its portfolio performance and upcoming financials.
Summary Table
|
Aspect |
Details |
|
Dividend per share |
₹12 (final for FY25, proposed) |
|
Record Date |
July 25, 2025 |
|
Dividend Payout (Govt) |
₹7,324 crore (approx.) |
|
Government Ownership |
96.50% (~6.10 billion shares) |
|
AGM Date |
August 26, 2025 |
|
Total PSU Dividend FY25 |
₹82,995 crore (LIC part ₹7,324 crore) |
|
|
|
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