LIC DRHP: Equity investments valued at Rs 9.78 lakh cr, double since March 2020

NEW DELHI: Life Insurance Corporation of India (LIC), India’s largest life insurer and also a major player in the stock market, said its policyholders’ fund had equity investments of Rs 9,78,493.81 crore as of September 30, representing 24.78 per cent of the total Rs 39,49,516.37 crore worth investments.

It stood at Rs 4,61,649.67 crore or 15.02 per cent as of March 31, 2020.

Over 90 per cent of LIC’s policyholders’ equity investments are a part of the Nifty200 and BSE200 indices as of September 30, 2021, the life insurer said in its draft red herring prospectus (DRHP) filed with Sebi on Sunday.

As per the CRISIL, LIC’s investments in listed equity represented approximately 4 per cent of the total market capitalisation of NSE as of that date.

LIC noted that its policyholders’ fund has a well-diversified investment portfolio, with 37.50 per cent of central government securities, 24.78 per cent equity securities, 24.61 per cent state government securities and 8.07 per cent corporate bonds, on a standalone basis.

Other investments included loans (3.07 per cent, money market instruments (0.22 per cent), approved securities (0.66 per cent), mutual funds (0.72 per cent), exchange-traded funds and venture funds and other investments (0.37 per cent).

A total of 95.89 per cent of LIC’s debt AUM on a standalone basis was invested in a sovereign and AAA-rated securities.

Meanwhile, in percentage terms, IDBI Bank was LIC’s biggest holding at 49.24 per cent as of December 31. In LIC Housing Finance, it owns a 45.24 per cent stake.