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Published: July 6, 2024
Updated: July 6, 2024

LIC's Stakes in Top Groups Surge in Value Amid Stock Market Boom

Investment Value Reaches Rs 4.39 Trn, Up 37.5%

Life Insurance Corporation of India (LIC) has seen a significant surge in the value of its stakes in top conglomerates, despite reducing its exposure in the financial year 2023-2024. The value of its remaining stake has gone up substantially across all groups, with its total investment value reaching Rs 4.39 trillion, a 37.5% increase over the last financial year.

Mukesh Ambani-Owned Companies Top LIC's Exposure

LIC has the highest exposure in Mukesh Ambani-owned companies, followed by Tata and Adani groups. The worth of LIC's investment in Mukesh Ambani group companies stands at Rs 1.5 trillion, a 34.2% increase over last year. Despite reducing its stake in RIL group companies to 6.19% from 6.37%, the value of its investment has continued to rise.

Tata and Adani Groups Also See Significant Increase

LIC's stake in Tata group companies has been reduced to 4.05% as of March this year, but the value of its investment has risen to Rs 1.29 trillion. Similarly, its stake in Adani group companies has been reduced to 3.76% from 4.27%, but the value of its investment has surged to Rs 64,414 crore, a 49.2% increase.

Government Urged to Sell Stake in LIC

With the stock market boom, analysts are urging the government to consider selling part of its 96.5% stake in LIC to utilize the proceeds for creating world-class infrastructure. LIC's total market value stands at Rs 6.42 trillion, making it a valuable asset for the government.

LIC's stakes in top groups have surged in value amid the stock market boom, despite reducing its exposure. The government's stake in LIC presents a significant opportunity to raise funds for infrastructure development. As the market continues to rise, it remains to be seen how LIC and the government will utilize this valuable asset.