How much is LIC owned in the Indian stock market? its top holdings

According to the draft initial public offering (IPO) documents filed with SEBI, the government has proposed to disinvest 5% of LIC’s equity through offer for sale (OFS).

However, the most formidable figure pertains to LIC’s strategic role in the Indian equity market, even before its stock went public. The total market cap of 5,249 shares listed on BSE as on February 14, 2022 was 255.4 lakh crore, this LIC has 3.7% ( 9.4 lakh crore) through its stake in various companies, according to data from brokerage Ventura Securities.

“It plays the role of a sheet anchor in the shareholding of several listed companies and acts as a strong counter balancing weight against FPI (foreign portfolio investors) holdings. For example, LIC held 16.23% stake in ITC as on December 31, 2021, while FPI investors held 9.99% stake. This is significant as the promoter does not have any stake in the company,” said the research report by the brokerage.

The insurance giant’s major holdings include India’s top companies such as Reliance Industries, in which it holds around 6.13% stake as of December 2021, Tata Consultancy Services (TCS), Infosys, State Bank of India (SBI), ITC, ICICI Bank, K. among others.

On the other hand, ITC, Hindustan Copper, NMDC, MTNL, Larsen & Toubro (L&T), Hindustan Aeronautics (HAL), Oil India are some of the companies in which LIC holds more than 10% stake.

see full image

In addition, several companies such as ACC, Ambuja Cements, India Cements, Bharat Bijli, CDSL, DCM Shriram, Grasim, Mahindra & Mahindra, National Stock Exchange, Tata Steel and Tata Power have LIC nominee directors. Board.

“Covid-19 was a stress test for Indian life insurance companies. Considering their steady performance even in such difficult times, they are likely to be on a strong growth trajectory going forward. And LIC being the market leader is the best opportunity to capture future growth opportunities,” Ventura Securities note added.