LIC’s portfolio value declines by over Rs 1.7 lakh crore in Q4

Mumbai: Life Insurance Corporation’s (LIC) ownership in listed Indian companies hit an all-time low of 3.88 per cent as on March 31. The value of its investments had declined by over 1.7 lakh crore during the quarter, caused by a selloff due to the Covid-19 outbreak.

The value of the state-owned insurance giant's holdings in listed stocks dropped from 6.04 lakh crore as on December 31 to 4.24 lakh crore as on March 31, according to a data by nseinfobase.com. On a free-float basis, LIC’s ownership in Indian companies declined to a record low of 7.85 per cent. The insurer's ownership in listed companies was the highest as on June 30, 2012, when it touched 5 per cent.

Investments in several PSUs and debt-laden entities have weighed on LIC's share portfolio. Known to be the most influential contrarian investor in Indian stocks, LIC's position has been partly occupied by domestic mutual funds, whose schemes have seen a rush of inflows in recent years.

“Companies in LIC’s portfolio saw a steeper decline during the sell-off caused by pandemic Covid-19 in comparison to mutual funds and FPIs due to the quality of portfolio,” said Pranav Haldea, MD, Prime Database Group.

LIC's holdings in companies like Tata Motors, Tata Chemicals, Indiabulls Housing, Edelweiss Financial, GIC Housing, Canara Bank, Future Group and Anil Ambani-controlled firms declined between 50 per cent and 70 per cent in the March quarter.

The government has ambitious plans to list LIC this financial year. The insurer has been valued in the range of 9.9 lakh crore to 11.5 lakh crore by independent valuation firm RBSA Advisors.

Source: The Economic Times

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