Mumbai: The country’s largest insurer, Life Insurance Corporation of India (LIC), has invested Rs40,000 crore in equity so far this fiscal, exceeding its total equity exposure of the last financial year.
“For the eleven months ended February 2009, we have invested Rs40,000 crore in equities. Equity investments in FY ‘09 have exceeded the total equity investments made last fiscal,“ a top LIC official said here.
LIC’s investment in stock markets every year is around 8-9% of its total premium collection, the official said, adding, “(The) banking sector remains appealing to us.”
The state-run insurer recently invested in three large companies, including State Bank of India, taking into account “an attractive valuation and good investment prospects”.
The insurance giant picked up a 2.11% stake in SBI for Rs1,484.12 crore, taking is total shareholding in India’s largest bank to 9.16% (4.94 crore shares).
It acquired a 2.86% stake in Indian Overseas Bank (IOB), also a government lender, for Rs57.65 crore and a 2.18% in private firm Cummins India for Rs72.22 crore.
LIC increased its stake in IOB to 9.96% by purchasing additional shares worth Rs57.65 crore between 19 February and 3 March.
It also purchased 43.22 lakh shares Rs72.22 crore in engine manufacturer Cummins India. With this, LIC now has a total of 7.6% stake in the company.
The insurer had also bought an additional 2.27 crore shares in ICICI Bank, increasing its total holding in the bank to 9.38% (10.44 crore shares).
LIC has also upped its stake in various other state-run banks in recent times.
These banks are Union Bank of India (2.18%), Oriental Bank of Commerce (2.60%), Bank of India (1.63%), Canara Bank (1.21%) and Punjab National Bank (0.38%).