ReportWire

Tag: LIC

  • LIC enters into tie-up with IDFC First Bank under corporate agency arrangement

    LIC enters into tie-up with IDFC First Bank under corporate agency arrangement

    [ad_1]

    Life Insurance Corporation of India (LIC) has entered into a tie-up with IDFC First Bank Ltd under corporate agency arrangement.

    This tie-up will facilitate more than 1 crore customers of IDFC First Bank to buy LIC policies online by visiting the bank’s website, India’s largest life insurer said in a statement.

    Referring to more than 95 per cent of the bank’s transactions happening online, the Corporation said, “It would be a great experience for the bank customers to have end-to-end solution for their varied life insurance needs.”

    R Doraiswamy, Managing Director, LIC, said, the coming together of the two financial entities will provide IDFC First Bank’s customers with the wide choice of LIC’s products.

    [ad_2]

    Source link

  • LIC raises stake in Navin Fluorine Intl by about 2 percentage points to 7.071 %

    LIC raises stake in Navin Fluorine Intl by about 2 percentage points to 7.071 %

    [ad_1]

    Life Insurance Corporation of India (LIC) has increased its shareholding in Navin Fluorine International Ltd (NFIL) from 5.037 per cent to 7.071 per cent of the latter’s paid-up capital.

    India’s largest life insurer bought 10,08,208 equity shares of Navin Fluorine International from the open market at an average price of Rs 3,445.63 per share.

    Following this purchase, LIC holds 35,05,347 equity shares of the company, the flagship company of the Padmanabh Mafatlal Group.

    There was a net increase of 2.034 per cent in LIC’s holding in NFIL during the period from January 8, 2024, to February 8, 2024, according to the insurer’s regulatory filing.

    NFIL is primarily engaged in producing refrigeration gases, inorganic fluorides, speciality organofluorines, and offers contract research and manufacturing services.

    The company’s consolidated sales declined 11 per cent year-on-year (yoy) in the third quarter to Rs 502 crore. Within this, speciality chemicals reported a 4.5 per cent decline in sales; sales of high performance products were down a shade (-0.6 per cent); and revenue from contract development and contract manufacturing operations dipped 41.5 per cent.

    NFIL’s consolidated third-quarter net profit declined 27 per cent yoy to Rs 78 crore (Rs 107 crore a year ago).

    NFIL’s shares had closed at Rs 3,028.60 per equity share on Friday, down 1.42 per cent over the previous close on BSE.



    [ad_2]

    Source link

  • Kotak vs Watsa: The battle for acquiring IDBI Bank intensifies

    Kotak vs Watsa: The battle for acquiring IDBI Bank intensifies

    [ad_1]

    It’s a two-horse race for IDBI Bank between Kotak Mahindra Bank and Prem Watsa-led Fairfax India Holdings, with both parties willing to pay a premium for acquiring a controlling stake. However, neither wants to merge IDBI Bank with their respective banks at this juncture.

    “A reasonable share of the government holding may remain in IDBI Bank for at least 2-3 years post the sale,” said a source explaining why the two bidders want to retain their existing banking entities independent of IDBI Bank.

    That said, highly placed sources say both interested investors are willing to shell out the premium expected by the government to acquire a majority stake in the bank.

    At around ₹57,000 crore of market capitalisation, IDBI Bank trades at approximately 1.3x 12-months trailing price to book valuation.

    On June 5, 2022 businessline had reported on Prem Watsa evincing interest in IDBI Bank, while on February 5 this year, we reported about Kotak’s interest in the bank. Sumitomo Mitsui Financial Group and Emirates NBD are said to be the other bidders.

    Seeking exemptions

    Kotak has proposed a structure whereby IDBI Bank would be held as its associate, with none of Kotak’s key management executives playing any role in the former.

    “The boards of IDBI Bank and Kotak Bank will not have overlaps,” said a person familiar with the matter. Once the government’s stake in IDBI Bank reduces, it may be merged with Kotak Bank. “A glide path of 3-5 years has been sought for the merger,” said the source.

    Fairfax has approached the RBI to not consider it as a promoter of IDBI Bank. “Fairfax wants to be seen as a large investor in the bank because it doesn’t want to cede control in CSB Bank or merge the two banks in the near term,” said another senior executive who didn’t want to be identified.

    As a deal sweetener, sources said: “Fairfax may extend comfort to the Government of India and Life Insurance Corporation of India (LIC) that IDBI Bank will remain a bancassurance partner for all the existing lines of businesses it has with these entities.”

    Emails sent to Kotak Mahindra Bank and Fairfax remained unanswered till press time.

    Tough call

    The exemptions sought by Kotak and Fairfax are contrary to the current regulations. The extant ownership norms do not permit an investor to hold two banks in the capacity of a promoter.

    Fairfax is the promoter of CSB Bank holding a 49.72 per cent stake. Likewise, a bank cannot invest in another bank, though an exception was made in March 2020 when the State Bank of India invested a 49 per cent stake in YES Bank.

    Tracking the divestment
    • DIPAM opened an expression of interest in IDBI Bank on October 7, 2022.
    • On January 7, 2023, it announced that it received multiple interest.
    • Presently, LIC and government hold 49.24 per cent and 45.48 per cent stake in the bank.
    • Post the sale LIC to hold 19.24 per cent and government at 15.48 per cent.
    • Data room for due diligence likely to be opened in June.
    • DIPAM may call for financial bids by September.

    [ad_2]

    Source link

  • IDBI Sale likely to conclude at 7-10 per cent premium

    IDBI Sale likely to conclude at 7-10 per cent premium

    [ad_1]

    As the IDBI Bank privatisation enters the next stage, it may end up being one of the most profitable divestment processes for the government in recent years. Interested bidders are willing to offer a 7-10 per cent premium for controlling interest in the bank, which works out to a valuation of ₹64,000-66,000 crore.

    Highly placed sources say that with the market regulator, SEBI, allowing the government’s request to classify its shares as “public holdings” post divestment, it has increased the willingness of investors to pay top dollars to take the promoter’s seat at the bank. “A major roadblock with respect to valuations and the deal has been cleared,” said a person aware of the matter.

    It is learnt from multiple sources that nearly 4–5 large investors, a motley of banks and private equity players, have submitted their expressions of interest (EOI) to the Department of Investment and Public Asset Management (DIPAM) to collectively pick up a 60.72 per cent stake in IDBI Bank.

    These include consortiums led by Fairfax Financial Holdings, Middle East-based Emirates NBD, and Japan’s Sumitomo Mitsui Banking Group. The interested investors are likely to submit their final bid by March, after which the reserve price for the transaction will be fixed.

    Effect of roadshows

    “When DIPAM conducted roadshows in April last year, it was looking at closing the deal at just about the then-prevailing market price, which was around ₹40–45 a share,” said a person aware of the matter.

    “The bank’s stock has appreciated by over 20 per cent since the road shows. With the commitment coming from the government that it will not take a seat on the board once the new investors step in, exercise control over the affairs of IDBI Bank, and have no special rights with respect to the bank, some of the interested investors are willing to pay the controlling premium for the deal,” he added.

    “For a bank with a balance sheet size of over ₹3-lakh crore and 1,900 branches, it makes sense to pay this kind of premium. It would give a head start to the business,” said a person aware of the transaction.

    On January 5, IDBI Bank informed stock exchanges that SEBI has relaxed some of the norms with respect to the government’s shareholding in the bank post the divestment, and on January 7 (the last day for furnishing EOIs), Tuhin Kanta Pandey, secretary, DIPAM, announced on Twitter that multiple EOIs have been received for the strategic disinvestment of government and Life Insurance Corporation of India stakes in IDBI Bank.

    The government holds a 45.48 per cent stake in the bank, and LIC’s stake is 49.24 per cent. Post divestment, LIC’s stake will reduce to 19 per cent, while the government’s will fall to 15 per cent.

    [ad_2]

    Hamsini Karthik

    Source link

  • LIC Q2: Insurer witnesses massive jump in net profit to Rs 15,952 cr in Sept quarter from Rs 1,433 cr in FY22

    LIC Q2: Insurer witnesses massive jump in net profit to Rs 15,952 cr in Sept quarter from Rs 1,433 cr in FY22

    [ad_1]

    Life Insurance Corporation (LIC), the largest insurance company in the country, reported a massive net profit of Rs 15,952 crore for the quarter ended September 30, 2022 (Q2 FY23), from Rs 1,433 crore in the same period last year. The insurance giant recorded a net profit of just Rs 682.9 crore in the June quarter.  

    As per its filing on Friday, the company has said that the massive surge is due to change in its accounting policy.   

    Its first-year premium, which shows business growth, was at Rs 9,124.7 crore for the September quarter compared with Rs 8,198.30 crore a year ago. 

    The net premium income was at Rs 1.32 lakh crore this quarter as compared to Rs 1.04 lakh crore in the year-ago period.  

    LIC’s renewal premium rose 2 per cent to Rs 56,156 crore, while single premium increased 62 per cent to Rs 66,901 crore. 

    Emkay Global had predicted that LIC will report a 19 per cent YoY drop in net profit this quarter compared with Rs 1,504 crore in the corresponding quarter last year.  

    It added that APE will grow 15 per cent YoY to Rs 13,286.50 crore from Rs 11,548.80 crore, while VBN will rise 17 per cent YoY to Rs 1,854.10 crore from Rs 1,583 crore. The VBN margin was predicted at 13.95 per cent, up 24 bps over 13.71 per cent YoY. 

    The company’s stock ended 1.17 per cent higher at Rs 628.05 on BSE on Friday ahead of the results. 

    Also read: Zomato working on new ‘differentiated’ loyalty programme, says Deepinder Goyal

    Also read: LIC shares rise after two days; here’s what to expect from Q2 earnings today

    [ad_2]

    Source link

  • LIC increases shareholding in Capri Global Capital to 9.07% from 7.05%

    LIC increases shareholding in Capri Global Capital to 9.07% from 7.05%

    [ad_1]

    Life Insurance Corporation (LIC) increased its shareholding in diversified non-banking financial company (NBFC) from 7.05 per cent to 9.07 per cent, the corporation said in a filing. LIC increased its shareholding from 1,24,00,000 to 1,59,51,171 equity shares – an increase of over 2 per cent in four months. 

    “Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform that Corporation’s shareholding in “CAPRI GLOBAL CAPITAL LTD.” has increased from 1,24,00,000 to 1,59,51,171 Equity Shares increasing its shareholding from 7.052% to 9.072% of the paid-up capital of the said Company,” the company said. 

    The corporation said that there has been an increase of more than 2 per cent in holding during the period from 10.06.2022 to 28.10.2022.

    LIC said that the holding increased 2.20 per cent during the period at an average cost of Rs 724.24.

    LIC, separately, has plans to transfer $22 billion from its non-participating fund to its shareholders’ fund, as mentioned in a Reuters report. Shares of LIC rallied 4.1 per cent to Rs 617.1 in intraday trade on BSE on Monday. 

    The NBFC, Global Capital, has presence across different segments like MSME, construction finance, affordable housing, and indirect retail lending segments. 

    Also read: LIC plans to transfer nearly $22 bn to revive battered stock: Report

    [ad_2]

    Source link