LIC's residual stake value surges in top groups on stock market boom

Value of investments in top conglomerates at Rs 4.39 trn, up 37.5%

Life Insurance Corporation of India (LIC) has made the most of the stock market boom by reducing stakes in all its top conglomerates during the financial year 2023-2024 (FY24).

However, even after reducing exposure, the value of its remaining stake has gone up substantially across all groups, according to data collated from stock exchange filings.

LIC has the highest exposure in Mukesh Ambani-owned companies, followed by Tata and Adani groups, according to the shareholding data till March this year.

As of Friday closing, LIC investments in top conglomerates is worth Rs 4.39 trillion, up 37.5 per cent over last financial year.

The worth of LIC investment in Mukesh Ambani group companies was highest at Rs 1.5 trillion, up 34.2 per cent over last year.

LIC reduced its stake in RIL group companies to 6.19 per cent from 6.37 per cent.

The insurer also cut its stake in Tata group companies to 4.05 per cent as of March this year but saw its value rising to Rs 1.29 trillion. Shareholding data for June quarter is not available as yet.

LIC, which is now listed on the stock exchanges, also reduced its stake in Adani group companies to 3.76 per cent from 4.27 per cent. The value of its stake went up to Rs 64,414 crore as on Friday, a surge of 49.2 per cent.

Market analysts said with a boom in the stock markets, the government should consider selling part of its 96.5 per cent stake in LIC to utilise the proceeds to make world class infrastructure.

“The central government is sitting on a goldmine with its investments in various PSUs. If it sells 20-25 per cent stake in LIC, then it can utilise the proceeds for creating infrastructure or for other purposes,” said Raamdeo Agrawal, co-founder of Motilal Oswal Financial Services.

LIC had a total market value of Rs 6.42 trillion as on Friday.

(With inputs from Sameer Mulgoankar)