LIC listing pushes government’s stake in NSE listed companies to record 7.15%

According to the latest report by Prime Database, the government’s shareholding as a promoter in NSE listed companies climbed 7.15% in the first quarter of FY 2013 as compared to 5.48% in the fourth quarter of FY 2012. In value terms, the holding has increased by 20.24% 16.99 lakh crore mainly LIC issue. stood on the holding 14.13 lakh crore in March 2022.

According to Pranav Haldia, Managing Director of Prime Database Group, it is mainly 20,557 crore LIC IPO In May (which is only a third of what was initially planned, sales of only 3.5%), as reported by PTI.

LIC is currently the tenth largest company in terms of market – Valuation 4.29 lakh crore in Q1FY23. Although the market cap of LIC is . was more than 6 lakh crores before listing. Despite the huge cut in size, LIC currently holds the title of the largest issue in the Indian IPO market.

However, the government’s overall stake in NSE-listed companies is much lower than that of Reliance Industries (RIL), which has a market valuation of around Rs. 17.63 lakh crore.

Data from Prime Database also showed that, over the past 13 years, the government’s stake in NSE listed companies has come down to 7.15% by the end of June 2022 quarter, from 22.48 per cent in June 2009. This disinvestment was due to the lack of many new companies. The listing as well coupled with the weak performance of several central units in comparison to their private counterparts.

In contrast, the share of private promoters declined to 44.33% in Q1FY23 from 45.12% in Q4FY22. Since June 2009, the private promoters’ stake has grown steadily from 33.60%.

In value terms, private promoter holding has jumped more than seven times From Rs 105.32 lakh crore in Q1FY23 14.49 lakh crore in June 2009, mostly aided by new listings.

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