LIC’s portfolio value diminishes by Rs 1.7 lakh crore in Q4 FY20

Life Insurance Corporation

Life Insurance Corporation’s (LIC) portfolio value diminishes by over Rs 1.7 lakh crore in fourth quarter. LIC’s proprietorship in listed Indian companies suffers a significant decrease of 3.88 per cent as on March 31. The value of its investments had fell by over 1.7 lakh crore during the quarter, caused by a selloff due to the coronavirus ongoing pandemic.

Pranav Haldea, MD, Prime Database Group said “Companies in LIC’s portfolio saw a steeper decline during the sell-off caused by pandemic coronavirus in comparison to mutual funds and FPIs due to the quality of portfolio”.

With respect to this, LIC’s equities in companies like Tata Chemicals, Tata Motors, Indiabulls Housing, GIC Housing, Edelweiss Financial, Canara Bank, Future Group and Anil Ambani directed entities declined between 50 per cent and 70 per cent in the March quarter.

Investments in several Public Sector Undertaking’s (PSU0 and debt loaded units have relied on LIC’s share portfolio. It is moreover, known to be the most influential investor in Indian stocks. LIC’s presence has been partly occupied by domestic mutual funds, whose schemes have seen a welcome of inflows in recent years.

The government visions aspiring plans to list LIC this financial year. The insurer has been valued in the range of 9.9 lakh crore to 11.5 lakh crore by sole valuation firm RBSA Advisors.

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