The LIC IPO is just around the corner. With the ushering craze of the Rs.65,000 crore Initial Public Offering, LIC is set to become the third most valued Indian stock post listing.
The LIC IPO would benefit both investors and the Government. For investors, it’s a win because they get to be part stakeholders of a company that owns a 64.1% share in Gross Written Premiums (GWP). With the convenience of online stock trading, investors have the privilege of taking advantage of market opportunities easily and quickly.
On the other hand, the Government is divesting a 5% stake in the Indian life insurance market leader, enabling it to fulfil its divesting goals and accelerate our country’s growth trajectory.
The Mesmerising LIC Stock Portfolio
To own a more than 1% stake in listed companies is a massive achievement. And to go a step further, the Life Insurance Corporation of India has more than 1% ownership in 278 companies at the end of FY 2022 Quarter 3.
LIC’s most prominent holding is IDBI Bank, with a 45.24% stake. LIC’s total portfolio is worth a massive 9.5 lakh crore rupees. So, if you buy LIC’s stock, you indirectly buy shares of its portfolio companies as well.
Let’s check out the LIC stock portfolio – Top 10 stocks LIC has put its money in.
1. Reliance Industries Limited
The Indian Multinational conglomerate, with its business activities spread across the energy and natural gas domain, retail, petrochemicals, telecom and mass media, has seen good growth in its share price. LIC has a 6.13% stake in RIL, with a portfolio worth Rs.94,093 crore.
2. Tata Consultancy Services
LIC owns a 3.65% share in TCS. TCS is the second most valuable stock in LIC’s portfolio based on market value. TCS share price has grown leaps and bounds, indicative of the impressive growth in the company’s business and assets. With the growing focus on technology, TCS’s price is expected to rise in the coming times.
3. HDFC Bank
HDFC Bank is popularly accredited for revolutionising retail lending and providing upbeat customer service, making it one of India’s most successful and profitable banking companies. The HDFC Bank share price growth reflects the success of India’s largest private sector bank.
4. Hindustan Unilever
The total value of the HUL holding of LIC is Rs.23,354, with a 4.46% stake. It is Unilever’s subsidiary, a Britain based company. HUL is a renowned home brand with food, beverages and personal care industry deployments. HUL share price was as low as Rs.166 back in 1999. With the drastic growth in business, the share price has crossed the impressive Rs.2000 mark.
ITC is the powerhouse of 13 iconic businesses and has 25 FMCG brands. With Rs.43,827 crores invested in ITC, LIC holds a 16.23% share in this conglomerate.
LIC has assets worth Rs.40,140 crore in terms of investments in Infosys. Infosys is an Information Technology company headquartered in Bangalore, providing business consulting, IT and outsourcing services.
7. State Bank of India
LIC has a massive stake in SBI – the Indian multinational public sector bank. Rs.36,895 is the total market value of LIC’s investment in the bank. SBI share price was as low as Rs.63 back in 2005. The share price has crossed the impressive Rs.500 mark.
8. ICICI Bank
ICICI Bank provides remarkable net banking and personal banking services to the general public. Its foray into providing tech-enabled services has revved its business performance. With the drastic growth in business, ICICI Bank share price has crossed the impressive Rs.800 mark.
ONGC is short for Oil and Natural Gas Corporate Limited. It is the biggest energy company in India, with the Maharashtra ONGC contributing 71% of India’s crude oil and natural gas production. ONGC’s stock has shown considerable growth over the years.
10. Larsen and Toubro
L&T is headquartered in Mumbai and provides a plethora of services. Construction, engineering, financial services, technology and manufacturing are industry domains in which L&T has its operations. With L&T in LIC’s portfolio, it is sure to reap good returns.
As we can see, LIC stock portfolio has stakes in many of India’s most significant conglomerates. These investments help the company generate decent returns and keep LIC investors satisfied.
Before you begin investing it is equally important to create a strategy.
Here are 4 key points for investing that will surely help you in taking better decisions.
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Happy Investing 😇
Disclaimer: This blog is not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your own due diligence or consult a trained financial professional before investing.