Adani exposure is not a cause of worry for LIC. It has a top holding in these 10 shares.

LIC is bigger than FPIs (Foreign Portfolio Investors).

Top 10 shares of LIC

LIC has holdings in other companies like Jaypee Infratech, Aurobindo Pharma, GTL Infrastructure, Bombay Dyeing, Sunteck Realty, Jet Airways (India), Laurus Labs, Indus Towers, Omaxe, Piramal Enterprises, Future Lifestyle Fashions among others. It also has a stake in Adani but it is not the biggest. All these companies have witnessed a beating in the past six months, and around 36 companies have reduced by over 20% in the past six months in which LIC has a holding. 

Read: Should you buy, sell, or hold LIC shares? 

A Little Background

LIC is India's largest insurance company and the biggest institutional investor in India. The company has been in the news for its exposure to the Adani Group. Thanks to the Hindenburg allegations, Adani's valuation has become half in only a few trading sessions. The issue has turned political, and many Parliamentarians want a probe. These Parliamentarians do not want the insurance behemoth to invest in Adani stocks.  

It might be surprising that LIC's Adani exposure is not the only issue. Many other investments have seen massive drops in the last six months. It has happened despite SENSEX gaining over 2% during the same time. Stock fluctuations can be because of several reasons, which might be external and unrelated to the company's fundamentals. Experts believe the insurance giant's investments must not be judged in the short term because it generally invests for the long term. 

Read: What experts have to sat about holding LIC shares. 

LIC Holdings

Regarding LIC's stake in Adani Group, it has a share in Adani Enterprises, Adani Ports and Special Economic Zone, Adani Total Gas, Adani Transmission, and Adani Green Energy. These are the top losers in LIC's portfolio in the last six months. However, Adani Group companies are not the biggest LIC holdings in percentage. It owns 9.14% of Adani Ports, and the other holdings look like this: 

  • Adani Green Energy (1.28%)
  • Adani Transmission (3.65%)
  • Adani Enterprises (4.23%)
  • Adani Total Gas (5.96%)

Its top 10 stakes are as follows: 

  • IDBI Bank (49.24%), 
  • LIC Housing Finance (45.24%), 
  • Standard Batteries (19.99%), 
  • Modella Woollens (17.31%), 
  • ITC (15.29%), 
  • NMDC (13.67%), 
  • Mahanagar Telephone Nigam (13.25 %), 
  • Gloster (12.85%), 
  • Larsen & Toubro (12.50%) 
  • Simplex Realty (12.38%)

Read: Growth potential of LIC IPO.

Interestingly, out of these 10 companies, 7 have profited, and five out of these have gained in double-digits. LIC clarified that its Adani Group stake is just 0.975% of its total AUMs of Rs. 41.66 lac crores as of September 30, 2022.

Siddhartha Mohanty On LIC's Exposure To Adani Stocks


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