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While the name LIC resonates from village to city, the company’s business model and investment methods remain largely unknown. Let us take a look at the companies in which LIC has invested
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 holds 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 generate substantial profits through its investments in a diverse range of 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 allocated to large-cap stocks. Total sales for the quarter amounted to Rs. 38,000 crore, while net purchases reached Rs. 18,000 crore.
During the quarter, LIC reduced its stake by 84 shares and completely withdrew from seven companies. 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. 16.76 lakh crore, compared to Rs. 15.72 lakh crore in the previous quarter.
LIC has invested in several blue-chip stocks. These include Larsen and Toubro (L&T) with Rs. 3,439 crore in purchases, followed by Maruti Suzuki India (Rs. 2,857 crore) and Bajaj Finance Ltd (Rs. 2,659 crore). Other significant investments include IndusInd 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 Finserv (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 large companies. The corporation sold shares worth Rs. 2,230 crore in NTPC and Rs. 2,129 crore in HDFC Asset Management. LIC also divested 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 1,562 crore).
LIC has recently expanded its portfolio with the addition of seven new stocks. The companies now included in LIC’s holdings are Scient Ltd, Shyam Metals and Energy Ltd, Sanofi Consumer Healthcare India, Shriram Finance, IDFC First Bank, Bank of Maharashtra and Bharat Electronics.