LIC invests Rs 35,293 cr in 9 month of FY14

Tags: LIC, Insurance
Country's largest insurer Life Insurance Corporation (LIC) has invested Rs 32,293 crore in the stock market in the nine months of 2013-14 and will invest another Rs 2,000 crore during this month for picking 5% stake in power equipment manufacturer BHEL.

This was higher than Rs 2,086 crore, it invested in the same period of last fiscal. LIC had invested Rs 33,208 crore in equity markets in the nine months of 2012-13.

At the same time, the insurer had invested Rs 1.52 lakh crore in government bonds, corporate bonds, infrastructure and projects etc during the three quarters of 2013-14, a senior LIC official said.

The Corporation invested Rs 1.32 lakh crore in government securities and other approved securities as against Rs 1.17 lakh crore in the same period of the previous fiscal.

The insurer's exposure in the bonds and debentures was to the tune of Rs 8,797.09 crore in the period as compared to Rs 23,907.70 crore in the nine-months of 2012-13.

So in all, LIC invested Rs 1.88 lakh crore in the three quarters of the current fiscal as compared to Rs 1.96 lakh crore invested in the nine months of the previous fiscal.

Recently, the government has approved to sell a 5% stake in Bhel to state-owned Life Insurance Corporation of India, fetching the exchequer about Rs 2,046 crore.

Bhel shares gained 3.18% to Rs 167.20 apiece at the close on the BSE on Friday, valuing the company at Rs 40,923 crore. A 5% stake would be worth about Rs 2,046 crore.

The Department of Heavy Industries, which is the administrative ministry of the company, has for long opposed the proposed disinvestment in state-run Bhel, citing unfavourable market conditions.

It wanted the issue not to look like a "distress sale" but rather one that would reap "good value.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sanskrit does not compare with German in the job market

    While there can be no argument that the importance of Sanskrit as an all-India language needs to be emphasised, particularly for the young generation

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Public good research in agriculture

Public good research in agriculture is designed to promote risk ...

Purnendu Ghosh

Why we must know the rules of the game

We like to believe that people are good and we ...

Shona Adhikari

Pop art is truly a feast for the eyes

The internationally reknowned Bruno Art Group’s presence in India had ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture