Life Insurance Corporation of India (LIC) has booked a
profit of about Rs 1,500 crore from selling its investments
during the last nine months ended 30 September. In January-March
period when the Sensex was ruling at 2900, LIC invested
in equities while foreign financial investors (FIIs) were
virtually absent in the market.
then accounted for more than 10 per cent of the deliverable
turnover in the market, according to senior LIC officials.
"We feel it is prudent to book profits at a certain
level of prices and we did it. We have sold the marginal
holding in most of the companies where we have investments."
the last fiscal, LIC had invested Rs 35,000 crore in the
corporate sector and Rs 21,000 crore in equities. The
company's total investments in the current fiscal (up
to July) amounted to Rs 30,000 crore, of which 74 per
cent are in central government securities and 16 per cent
in state government securities.
has sold around 10 per cent stake in Associated Cement
Companies, 1 per cent stake each in ITC Ltd, Bharat Petroluem
Corporation and Grasim Industries. The corporation has
also sold less than 1 per cent stake in Bajaj Auto, various
Tata group firms and Hindustan Petroleum Corporation.
have investments in all the leading listed companies,"
say the officials. "Selling a huge chunk of ACC shares
was part of our plan to bid for Harshad Mehta's 9.5-per
cent stake in ACC." LIC had acquired Mehta's ACC
shares for a total consideration of Rs 275 crore.
Sensex has appreciated over 1500 points in the last four
months to close at 4855 on 15 October as against the 3200
levels in June with most of the above stocks where LIC
has booked profits going up anywhere between 20 and 60
Bajaj Auto's case the scrip has steadily increased from
Rs 467 levels in June to Rs 731 levels in September, an
appreciation of around 67 per cent. Similarly others like
HP, BP, Grasim and Tata group companies Tisco and Tata
Motors have shown considerable appreciation in share prices,
which has lead LIC to book profits at higher levels.
the fiscal 2002-03, LIC had invested Rs 6,000 crore in
equities. Last year the corporation had booked profits
to the extent of Rs 900 crore in equities trading.