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LIC increases its Stake as it focuses more on Large-Cap Shares December 10 2020Life Insurance, Yes Bank, UTIAMC

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The Life Insurance Corporation of India (LIC), the largest domestic institutional investor that is also considering an initial public offering, has made a lot of changes to its portfolio this year in the September quarter.

While the previous quarter, LIC made new entry into 14 different stocks—Alkem Laboratories, Central Bank of India, Bajaj Finance, Bandhan Bank, Berger Paints, Eicher Motors, HDFC Asset Management Company, Birla Tyres, Jaiprakash Associates, Lux Industries, Shriram Transport Finance Company, Ramco Cements and UTI AMC, Indian Hotels Company.

Standing tall long-term investor LIC, the largest institutional investor which is currently in the mood of IPO preparations, removing and rejigging portfolio stocks by withdrawing from low-market capitalisation and investing in high-quality large-cap companies that are fundamentally strong ahead of their initial targeted public offering.

The 14 inventories have yielded a return of 13-605 percent year-to-date (FY21). With a 605 percent rally, Birla Tyres was the biggest winner, followed by Jaiprakash Associates (281 percent return on a very small level) and Bajaj Finance (120 percent). UTI AMC had its IPO launch, via the IPO which launched at the end of September, LIC obtained a 10 percent stake in it. LIC had a 1-4.2 percent shareholding in the remaining stocks. LIC excited Alok Industries, Amtek Auto, Arvind Fashions, Bank of Baroda, Bayer CropScience, BEML and Bombay Wire Ropes. The figures show that during the quarter, LIC raised its stake in most large caps and midcaps. Most of these stocks have not participated entirely in the run seen from the lows of March. During the quarter, the benchmark indexes rose 9 percent and more than 45 percent from the low of March 23. From March lows, the benchmarks have soared 72 percent.

LIC increased its share of private lender Yes Bank to 4.98 per cent in the month of August. All of this led to a jump in Yes Bank''s share price of about 4.90 per cent to Rs 12.83. Yes Bank said that LIC had acquired 105,98 core shares of the bank via an open market acquisition. As a result, LIC''s interest in the bank rose to 4.989% from 0.759 percent earlier.

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