‘India Bull’ Life Insurance Corporation of India or LIC has apparently used the stock market boom to book profits as the PSU’s ownership in India Inc has fallen to an all-time low of 3.64%.

LIC’s share by value in companies listed on NSE went down to 3.64% as on December 31, 2023, from 3.73% as on September 30, 2023, but in value terms, the holding rose 11% to Rs 13 lakh crore, according to data from PRIME Database.

Insurance companies, as a whole, sold a net of Rs 15,622 crore during the quarter, a major part of which is attributable to LIC since the behemoth commands a lion’s share of investments in equities by insurance companies (at least 68% share or Rs 13.02 lakh crore), said PRIME’s Pranav Haldea.

In value terms, LIC’s biggest bets are RIL – holding worth more than Rs 1 lakh crore – ITC, TCS, HDFC Bank, Infosys, L&T, SBI, ICICI Bank, IDBI Bank, and HUL.


During the quarter, the share of domestic institutional investors or DIIs dropped marginally to 15.96% from 15.99% quarter-on-quarter, while the share of FIIs also declined 21 bps to 18.19% despite net inflows from FIIs of Rs 50,588 crore in Q3.The gap between FIIs and DIIs has been narrowing down and it is expected that desi boys will become the king of Dalal Street even as dollar money will keep flushing India. The gap between FII and DII holding narrowed further to an all-time low in this quarter with DII holding now being just 12.23% lower than FII holding, PRIME report said.Meanwhile, the share of the Indian government as a promoter increased to a 6-year high of 9.38% as of December 31, 2023, on the back of a strong performance of several PSUs, including LIC.However, to put this in perspective, over a 15-year period, the share of the government has declined considerably, from 22.48% on June 30, 2009, primarily due to the government’s divestment programme and not enough new listings, the report said.

The share of retail investors (individuals with up to Rs 2 lakh shareholding in a company) decreased marginally to 7.57% as of December 31, 2023, from 7.62% on September 30, 2023. The report shows small investors sold a net of Rs 12,163 crore during the quarter.

“The share of High Net Worth Individuals (HNIs) (individuals with over Rs 2 lakh shareholding in a company) increased slightly to 2.06 per cent as of December 31, 2023, from 2.05 per cent on September 30, 2023. As such, the combined retail and HNI share declined to 9.63 per cent as of December 31, 2023, from 9.68 per cent as of September 30, 2023. The combined retail, HNI, and MF share, however, reached an all-time high of 18.44 per cent as of December 31, 2023,” the report said.

There were 13 companies in which the trinity of promoters, FIIs and DIIs all increased their stake during the quarter – Westlife Foodworld, Gujarat Narmada Valley Fertilizers & Chemicals, Wonderla Holidays, Ami Organics, Thangamayil Jewellery, Unichem Laboratories, Shankara Building Products, Snowman Logistics, Bajaj Healthcare, Associated Alcohols & Breweries, Macpower CNC Machines, Sukhjit Starch & Chemicals and Chembond Chemicals.

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