Life Insurance Corporation (LIC) is the largest insurance provider in India, holding over 66.2 percent of the market share in new business premiums. One of the crucial roles of LIC is to invest in global financial markets and different government securities after gathering funds from people through their various life insurance policies.
Portfolio Enhancement
Life Insurance Corporation of India (LIC), the largest institutional investor in Indian stock markets, acquired shares valued at Rs.17,000 crore in the first quarter of the current financial year.
As of the end of the June quarter, LIC held 321 stocks in its portfolio, the cumulative value of which is pegged at around Rs 15.71 lakh crore. During the June quarter, the insurance giant added 11 new stocks and increased its stake in 89 existing ones. Meanwhile, it reduced its holdings in 95 stocks and exited 11 others.
Here is a list of few companies in which LIC has invested:
Rural Electrification Corporation Ltd. (REC)
During the June quarter, the biggest addition for LIC in terms of new companies was REC Ltd. Life Insurance Corporation of India (LIC) is projected to have freshly invested approximately Rs.1,485 crore in Rural Electrification Corporation (REC) during the June quarter of 2024.
REC Limited is a Central Public Sector Undertaking under the Ministry of Power that finances projects across the entire power sector value chain, from generation to distribution.
For the quarter ended June 2024, REC Ltd reported revenue from operations of Rs.13,079 crore and net profits of Rs.3,460 crore. Year-on-year, this reflects a revenue increase of 18 percent and a profit rise of 17 percent respectively.
Poonawala Fincorp Ltd.
Poonawalla Fincorp Limited, a NBFC, is engaged in providing consumer and MSME financing, as well as General Insurance services.
LIC invested in those companies where they found valuation comfort, and one of them was Poonawala Fincorp Ltd. in which LIC purchased shares worth Rs.466 crores in Poonawala Fincorp Ltd. This was the third largest investment of LIC in the June quarter of FY25.
For the quarter ending June 2024, Poonawalla Fincorp Ltd reported revenue from operations amounting to Rs.978 crore, alongside net profits of Rs.292 crore. Year-on-year, this reflects a revenue increase of 41 percent and a profit rise of 29 percent respectively.
Texmaco Rail & Engineering Ltd.
LIC bought a stake worth Rs.112 crore in Texmaco Rail & Engineering Ltd. Texmaco Rail is an engineering infrastructure company engaged in the business of manufacturing rolling stock, hydro-mechanical equipment and other steel structures.
Texmaco Rail & Engineering Ltd. could prove to be a beneficial investment for LIC considering its strong financials.
For the quarter ending March 2024, Texmaco Rail & Engineering Ltd. reported revenue from operations amounting to Rs.1,145 crore, alongside net profits of Rs.47 crore. Year-on-year, this reflects a revenue increase of 37 percent and a profit rise of 161 percent respectively.
India Tourism Development Corporation Ltd (ITDC)
India Tourism Development Corporation Ltd operates hotels and restaurants, offers transport services, and tourism promotional materials.
During the June quarter of FY25 LIC, invested Rs.112 crores in ITDC Ltd. According to experts, LIC probably took advantage of volatility in the market after elections to deploy cash investments.
For the quarter ending March 2024, ITDC reported revenue from operations amounting to Rs.148 crore, alongside net profits of Rs.16 crore. Year-on-year, this reflects a revenue decrease of 3 percent and a profit rise of 60 percent respectively.
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Ador Welding Ltd.
Ador Welding Ltd stands out as a prominent entity in the welding industry, specialising in a diverse range of welding products, technologies, and services.
LIC purchased shares of Ador Welding Ltd. in the June quarter of 2024. LIC purchased shares worth Rs.28 crore of the company.
For the quarter ending June 2024, Ador Welding Ltd reported revenue from operations amounting to Rs.230 crore, alongside net profits of Rs.15 crore. Year-on-year, this reflects a revenue increase of 21 percent and a profit rise of 36 percent respectively.
Written by – Siddesh S Raskar
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