LIC pares stake in top conglomerates in FY24; value up to Rs 4.39 trillion
Photo Credit: Ruby Sharma
Government-owned insurer Life Insurance Corporation of India (LIC) has made the most of the stock market boom by reducing its stake in all top conglomerates in the financial year 2024. Despite reducing stakes, the value of its remaining stake has gone up substantially across all groups, as per data collated from stock exchange filings.
The LIC has the highest exposure in Mukesh Ambani-owned companies, followed by Tata and Adani group companies, according to the shareholding data till March this year. As of Friday’s closing, LIC investments in top conglomerates are worth Rs 4.39 trillion, up 37.5 per cent.
The worth of LIC’s 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. LIC also reduced 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 the June quarter is not available yet.
The LIC, now listed on the stock exchanges, also reduced its stake in Adani group companies to 3.76 per cent, down from 4.27 per cent. The value of its stake went up to Rs 64,414 crore as of Friday, up 49.2 per cent.
Market analysts say 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 Indian 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, a Mumbai-based stock broking and financial services firm.
LIC had a total market value of Rs 6.42 trillion as of Friday.
(With inputs from Sameer Mulgoankar)
First Published: Jul 07 2024 | 4:19 PM IST