look news india
New Delhi: State-owned insurer Life Insurance Corporation of India (LIC) has taken full advantage of the bullish market by reducing its stake in all the top group companies in FY24. According to stock market data, despite the reduction in stake, the value of its remaining stake has increased significantly.
According to shareholding data till March this year, companies owned by Mukesh Ambani have the highest exposure to LIC, followed by Tata and Adani group companies. At market close last Friday, LIC's exposure among the top groups rose 37.5 per cent to Rs 4.39 lakh crore.
LIC's investment value in Mukesh Ambani group companies is the highest at Rs. 1.5 lakh crore, which is 34.2 percent higher than last year. LIC has reduced its stake in Reliance group companies from 6.37 percent to 6.19 percent.
LIC also reduced its stake in Tata Group companies to 4.05 per cent by March this year, but its value increased to Rs 1.29 lakh crore. Shareholding data for the June quarter is not yet available.
LIC has reduced its stake in Adani Group companies from 4.27 per cent to 3.76 per cent. Its share value increased by 49.2 per cent to Rs. 64,414 crore.
Market analysts say that as the stock market improves, the government should consider selling a part of its 96.5 per cent stake in LIC so that the proceeds from it can be used to build world-class infrastructure.
The government is sitting on a gold mine with its investments in various public sector undertakings (PSUs). If it sells 20-25 per cent stake in LIC, it can use the proceeds to build infrastructure or for other purposes. As of last Friday, the total market capitalisation of LIC was Rs. 6.42 lakh crore.
