Life Insurance Corporation of India (LIC) share price: LIC share price rose 1.8% on Wednesday's trading session despite the insurer's announcement on Tuesday that tax authorities had issued a demand notice for approximately ₹116 crore due to nonpayment of Goods and Services Tax (GST) for the 2017–18 tax year. LIC share price today opened at ₹838.80 apiece on BSE. LIC share price touched an intraday high of ₹853 and an intraday low of ₹837.45. According to Ruchit Jain, Lead Research Analyst at 5paisa, LIC share price has been forming higher top higher bottom. The 20 DEMA support is placed around ₹800, followed by a swing low at 746.
Life Insurance Corporation of India (LIC) share price: LIC share price rose 1.8% on Wednesday's trading session despite the insurer's announcement on Tuesday that tax authorities had issued a demand notice for approximately ₹116 crore due to nonpayment of Goods and Services Tax (GST) for the 2017–18 tax year. LIC share price today opened at ₹838.80 apiece on BSE. LIC share price touched an intraday high of ₹853 and an intraday low of ₹837.45. According to Ruchit Jain, Lead Research Analyst at 5paisa, LIC share price has been forming higher top higher bottom. The 20 DEMA support is placed around ₹800, followed by a swing low at 746.
In its regulatory filing, the insurer stated that Telangana state's interest and penalty demand order had been received by the corporation. The company has to appeal the aforementioned order within the allotted timeframe to the Hyderabad Rural Division Joint Commissioner (ST).
Further, the company stated in its filing that there is no material impact on its finances, operations, or other activities.
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According to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, despite receiving a GST demand notice, LIC looks strong with no material impact on financials or business operations. Against the notice, LIC also said that it would file an appeal against the order.
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"Technically, ₹865-870 looks like a strong resistance; if it closes above the resistance, we can get the IPO price ( ₹889 ( ₹949- ₹60 (retail discount)) on the chart with a short-term target of ₹910-920," added Tapse.
A similar notice demanding approximately ₹806 crore for short payment of GST for 2017–18 along with interest and penalty for Maharashtra was received by LIC on Monday.
As per trendlyne data, LIC stock price rose 19.15% and underperformed its sector by 13.89% in the past year. In the last month, the stock has gained over 26%, propelling it to trade near its IPO price, which is just 10.5% away.
The company reported a 50% YoY decline in its standalone profit to ₹7925 crore in the September quarter of FY 23-24. LIC's profit were hurt by a fall in premium income.