While LIC’s name resonates from village to city, the company’s business model and investment practices are largely unknown. Let us take a look at the companies in which LIC has invested.
LIC invested Rs. 56,000 crore, with half earmarked for large cap stocks. (Representative/News 18 Kannada)
The name of Life Insurance Corporation of India (LIC), the country’s largest insurance company, is known from village to city. Everyone from the poor and middle class to the rich have LIC policies.
LIC, the largest institutional investor in the Indian stock market, invests a significant portion of its policyholders’ funds in equities. This strategy allows LIC to earn substantial returns through its investments in various companies.
During the September quarter, LIC increased its stake in 75 of its 285 holdings and added 7 new stocks to its portfolio. The corporation invested Rs. 56,000 crore, with half earmarked for large cap stocks. Total sales for this quarter are Rs. 38,000 crore, while net purchases reached Rs. 18,000 crore.
During the quarter, LIC reduced its stake to 84 shares and divested seven companies entirely. However, there was no change in its shareholding in the remaining 111 companies. According to Prime Database data, LIC’s portfolio of 285 shares has a total value of Rs. 15.72 lakh crore in the previous quarter as against Rs.16.76 lakh crore.
LIC has invested in several blue-chip stocks. Among them is Larsen & Toubro (L&T). 3,439 crore purchases, followed by Maruti Suzuki India (Rs 2,857 crore) and Bajaj Finance Ltd (Rs 2,659 crore). Other major investments include Indus Bank (Rs 2,396 crore), Mahindra & Mahindra (Rs 1,839 crore), State Bank of India (Rs 1,824 crore), Reliance Industries (Rs 1,686 crore), Bajaj Finsar (Rs 1,519 crore). . ), Kotak Mahindra Bank (Rs 1,363 crore), and ICICI Bank (Rs 1,351 crore).
LIC has reduced its stake in several major companies. The corporation sold shares worth Rs. 2,230 crore in NTPC and Rs. 2,129 crore in HDFC Asset Management. LIC also allotted shares worth Rs. 2,105 crore in other unspecified companies.
Other major investments include Hero MotoCorp (Rs 1,987 crore), Tata Consultancy Services (Rs 1,732 crore), GAIL India (Rs 1,726 crore), Voltas (Rs 1,718 crore), Tata Power (Rs 1,706 crore) and HPCL (Rs 1,706 crore). 56 crores) are included. .
LIC recently expanded its portfolio with the addition of seven new stocks. LIC’s holdings now include Scient Ltd, Shyam Metals and Energy Ltd, Sanofi Consumer Healthcare India, Shriram Finance, IDFC First Bank, Bank of Maharashtra and Bharat Electronics.