The IPO-bound nationwide insurer Life Insurance coverage Corp. (LIC) will not be solely the biggest holder of presidency debt — proudly owning 19 per cent of the G-secs — but additionally the only largest proprietor of equities, the biggest fund manger in addition to holder of family financial savings, dwarfing even SBI deposits, as per a report.
Holding 17 per cent of the over ₹80.7 lakh crore dated authorities securities, maturing by 2061, the Reserve Financial institution is the second largest holder of presidency debt, whereas led by public sector banks, industrial banks collectively personal round 40 p.c. Different insurers cumulatively personal solely 5 p.c.
LIC’s possession of G-secs peaked in March 2019 when it held 20.6 per cent and 20.5 per cent in March 2020, in line with Swiss brokerage UBS Securities.
With USD 520 billion of whole belongings beneath administration (AUM), LIC is the biggest institutional investor within the round USD 3 trillion home equities market.
With 29 per cent share or USD 130 billion in AUM, LIC additionally has the biggest share of home institutional fairness AUM, which is a shade greater than half of all fairness mutual funds within the nation, as per an evaluation by the brokerage.
LIC has about 4 per cent stake in equities, making it the single-largest stakeholder after the federal government (promoter stake), however that is down from its 2017 peak when it held 4.7 per cent of the market.
LIC additionally has a disproportionately greater share in state-owned shares with round 9 per cent share.
As of December, it owns 10 per cent of RIL, 5 per cent every in TCS, Infosys and ITC, and 4 per cent every in ICICI Financial institution, L&T and SBI.
After the itemizing, LIC could be the biggest funding within the authorities’s portfolio of listed equities — 43 per cent of USD 377 billion in AUM.
That is necessary from the standpoint of presidency price range financing by means of divestment and it’ll even be the third largest firm when it comes to marker cap of USD 172 billion after Reliance Industries (USD 214 billion) and TCS (USD 182 billion).
With 28 crore policyholders, LIC has the utmost share of family financial savings.
The report stated almost ₹10 out of each ₹100 saved by households annually goes to LIC, making it bigger than even the perceived staple of family financial savings — SBI, which will get round 8 per cent of the financial institution deposits.
It should even be the Thirty second-largest primarily based on free float market cap as the federal government is promoting solely 5 per cent stake by means of the IPO. Once more RIL leads the free-float market with USD 108.7 billion, adopted by HDFC Financial institution at USD 88.2 billion, Infosys (USD84.7 billion), ICICI Financial institution (USD72.8 billion, HDFC (USD 58.2 billion) and TCS (USD 50.8 billion).
However among the many state-owned corporations, LIC would be the third largest when it comes to free-float worth at USD 8.6 billion, after SBI’s USD 27 billion and PowerGrid’s USD 9.4 billion.
This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.
Supply: Live Mint