LIC made ₹10,000 Cr profit in equities during the Lockdown Period!. Believer of ‘Buy Bad News, Sell Good News’, LIC was on buying spree during the Lockdown Period.
Chairman MR Kumar : “I can tell you post lockdown for at least two months, we were only buying. We hardly sold anything. And subsequently, we did some selling as well. But I can share only this much with you today that from April 1 till day before yesterday, we made a profit of Rs 10,000 crore”
Some holdings of LIC :
• ITC Limited : ~16.32%
• Castrol : ~10.32%
• Infosys : ~6.62%
• Sun Pharma : ~6.37%
Additionally, they hold significant stakes in over 100 Cos comprising of RIL, Wipro, SBI & several others. They also own 51% stake in IDBI Bank, they only Insurance Company in India to own majority stake in a bank. With over 75% Market share in policies, LIC is India’s #1 Insurance #company. LIC’s yearly investment income ($29 Bn) is more than the cumulative business done by entire General Insurance Industry! ($22 Bn). Speaks a lot about its magnitude!
So what makes them #1?
LIC has adapted to market conditions well by launching different subsidiaries like LIC Housing Finance, LIC Mutual Fund, LIC Credit Cards etc. LIC have thrived in various Situations very well.
2) Trust Factor
The Government owns 100% of the company so naturally they enjoy Government’s Goodwill.
3) Robust Branding
When someone says Insurance, we assume they are talking about LIC! This speaks everything about their popularity & branding.
Recently, SBI Capital Markets & Deloitte were appointed Pre-IPO Advisors for LIC. Its IPO is expected to be India’s Biggest Public Offering in the Indian Capital Markets!. Motilal Oswal : “LIC IPO can add 20 Cr investors”. LIC is likely to raised ₹80,000-₹90,000 Cr for 8-9% of the business. Will its IPO change Young India’s perspective towards investing?