Tata, HDFC, Reliance, and Adani top LIC’s big-ticket bets
LIC also has maximum exposure to power generation and distribution companies, accounting for more than half of its investment portfolio.
Tata Group, HDFC, Reliance Industries, and Adani Group hold a significant hold over the Life Insurance Corporation’s (LIC) total book value, said Pankaj Chaudhary, the Minister of State in the Ministry of Finance, responding to a question in the Parliament on Tuesday.
According to data disclosed, LIC holds Rs 88,404 crore worth of debt and equity in the Tata Group, Rs 80,843 crore worth of stake in Housing Development Finance Corporation (HDFC), Rs 60,065 crore in Mukesh Ambani-led Reliance Industries, and Rs 47,633 crore worth of shares in Adani Group.
In October, LIC’s exposure to Adani was heavily scrutinised after a Washington Post report noted that the Indian government had devised an expensive plan to rescue Gautam Adani’s debt-laden conglomerate by directing money from the state-owned entity.
In a reply to Parliament, earlier this month, the government said that LIC has invested a total of Rs 48,284.62 crore in Adani Group companies.
Besides these conglomerates, LIC also holds significant exposure to State Bank of India (SBI), Larsen & Toubro (L&T), and FMCG giant Unilever.
The question was posed by Members of Parliament Sukhendu Sekhar Ray and Derek O’ Brien of All India Trinamool Congress.
LIC, a major institutional investor in Indian public companies, has a highly diversified portfolio valued at about Rs 16.84 lakh crore as of June this year, according to reports.
According to the Parliament reply, LIC also holds significant sectoral exposure to power generation and distribution companies with holdings worth Rs 1,29,180 crore, followed by a significant stake in FMCG companies and cement firms.
Edited by Suman Singh