LIC Shares Trade Lower After Insurance Giant Receives Two Tax Demand Notices Worth Rs 3,529 Crore

Shares of Life Insurance Corporation (LIC) of India traded in the red on Friday (January 12, 2023) after the insurance giant informed that it has received two demand notices aggregating to about Rs 3,529 crore from tax officials. In an exchange filing on Thursday (Jan 11), LIC said, "The Corporation has received orders from Income Tax authorities regarding Income Tax demand issued by Assistant Commissioner of Income Tax, Mumbai." The Corporation would file an appeal before Commissioner (Appeals), Mumbai against the said orders within the prescribed timelines, it said.

The state-owned insurance company further stated that there is no material impact on financials, operations or other activities of the Corporation due to the said orders. LIC shares were spotted trading 0.52% lower at Rs 829.65 per share at 9:32 am IST.

The Corporation's shareholding in "Navin Fluorine International Limited" recently increased from 23,75,398 to 24,97,139 Equity Shares, increasing its shareholding from 4.792% to 5.037% of the paid-up capital of the said Company. Navin Fluorine is engaged in the production of refrigeration gases, and inorganic fluorides and offers contract research and manufacturing services.

On January 8, the Board of Directors of the Corporation, considered and approved an investment in New Company, promoted by the National Housing Bank, for residential mortgage-backed securities, through equity contribution of up to 10% of the share capital, in one or more tranches.

LIC share price performance:

In the last three months, LIC shares have gained 30.79%, while the stock is up 34.34% in the last six months. Returns from LIC shares have increased 18% in the last one year. In the last one month, the stock has gained almost 5.27%.