LIC IPO: As the IPO of Life Insurance Corporation of India (LIC) is approaching its launch, the market interest is increasing in this regard. Before its release in the issue market, one of the biggest data related to LIC has come out, which shows about its strategic role in the equity market of India.
According to data released by brokerage Ventura Securities, LIC owned 3.7 per cent (Rs 9.4 lakh crore) of the total market cap of Rs 255.4 lakh crore of 5,249 stocks listed on the BSE as of February 14, 2022, which is its share in various companies. through share.
Listed companies have an important role in shareholding
The brokerage said in its research report, “It plays a key role in the shareholding of many listed companies and balances in response to Foreign Portfolio Investors (FPI) holdings. For example, LIC holds 16.23 per cent stake in ITC, while FPIs hold 9.99 per cent. This is important because the promoter has no stake in the company.
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LIC’s 6.13 percent stake in RIL
Reliance Industries (RIL) is also among the companies with a large stake in the giant insurance company, in which LIC had a 6.13 per cent stake as of December 2021. Apart from this, LIC also has a significant stake in Tata Consultancy Services (TCS), Infosys, SBI, ITC, ICICI Bank.
These companies have more than 10 percent stake
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 per cent stake.
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The nominated directors of LIC are also on the boards of ACC, Ambuja Cements, India Cements, Bharat Bijli, CDSL, DCM Shriram, Grasim, Mahindra & Mahindra, National Stock Exchange, Tata Steel and Tata Power etc.
Good growth prospects
Ventura in his note said, “The period of COVID-19 was like a testing time for life insurance companies in India. Even in these difficult times, their good performance indicates that they are on the path of strong growth. Being the market leader, there are opportunities for LIC to reap the benefits of future growth potential.”
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