LIC Boosts Stake in HUL to Over 5% Amid Market Activity

16 Apr 2024 , 01:18 PM

LIC announced on Monday that its stake in Hindustan Unilever Limited (HUL) has exceeded 5%. The increase in shareholding raised LIC’s equity shares in HUL from 11,74,63,555 to 11,77,18,555, representing a shift from 4.99% to 5.01% of the company’s paid-up capital, as per a regulatory filing.

Additional shares were procured by LIC through standard market transactions. This acquisition pushed LIC’s ownership in HUL to 5%, with shares bought on April 12 at an average cost of ₹2,248.59 per unit.

Despite this, HUL’s shares closed 1.72% lower at ₹2,194.60, while LIC’s shares concluded at ₹961.15 apiece on the BSE, down by 1.03%.

LIC, headquartered in Mumbai, is India’s largest insurance company and institutional investor, managing assets worth ₹49.24 trillion as of March 2023, under the ownership of the Government of India and administrative control of the Ministry of Finance.

Established on September 1, 1956, LIC was created through the nationalization of India’s insurance industry, merging over 245 insurance companies and provident societies.

As of 2019, LIC reported 290 million policyholders, a total life fund of ₹28.3 trillion, and settled 26 million claims in 2018–19. In 2022, LIC ranked 98th on the Fortune Global 500 list, with revenues of ₹775,283 Crore and a profit of ₹4,415 Crore.

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