LIC’s Tata Group Holdings Cross ₹1 Lakh Crore As Insurer Raises Stakes In 10 Listed Companies
Add Preferred News Source
LIC’s rising exposure to Tata Group companies comes as Tata Sons faces renewed scrutiny over its leadership and governance, with N Chandrasekaran’s reappointment and the holding company’s listing plans drawing attention from Tata Trusts and other stakeholders.
Life Insurance Corporation of India’s (LIC) holdings in Tata Group’s listed companies have crossed ₹1 lakh crore, with the insurer increasing its stake in 10 of the group’s 14 listed companies since June 2022.
The increase in exposure has come during N Chandrasekaran’s second stint as Tata Sons chairman, which began in June 2022. Data from Prime Database shows LIC raised its holding in several Tata companies during the period, although its exposure declined in four companies.
The changes come at a significant point for the Tata Group, with questions around Chandrasekaran’s tenure, the future of Tata Sons and its potential listing currently in focus.
LIC’s Tata Group Portfolio: TCS, Tata Steel Among Biggest Holdings
Tata Consultancy Services (TCS) remains LIC’s largest Tata Group investment by value. LIC holds a 5.52% stake in TCS, worth around ₹41,960 crore, accounting for roughly 40% of its exposure to the group.
Tata Steel is the second-largest holding, with LIC owning 6.3% of the company. The stake is valued at more than ₹14,000 crore.
Among the larger changes in percentage ownership, Tata Elxsi saw LIC’s holding rise to 6.59% from 1.04% in June 2022. LIC also built a more than 3% stake in Trent from zero during the period.
LIC’s holding in Tata Consumer Products increased to 8.23%, while its stake in Tata Chemicals rose from 6.79% to 9.24%. The latter leaves relatively limited room for further purchases, given the regulatory ceiling applicable to LIC’s holding in a single listed company.
The increase has not been uniform across the Tata portfolio.
LIC’s holdings fell in Tata Communications, Tata Motors, Tata Motors Passenger Vehicles and Titan since June 2022. Its stake in Tata Communications dropped from 3.37% to below 1%, while its holding in Titan declined by 1.09 percentage points to 2.17%.
The Tata Motors holding also needs to be viewed in the context of the group’s 2025 demerger, which separated its commercial vehicle business from the passenger vehicle operations.
The changes in LIC’s Tata portfolio come as the group enters a period of heightened scrutiny around Tata Sons. The Tata Sons board has backed Chandrasekaran for another five-year term, while Tata Trusts chairman Noel Tata has opposed the reappointment. Tata Sons is also facing renewed pressure over its potential stock market listing following regulatory developments.
Also Read - Tata Chemicals, Tata Investment Shares Fall As Tata Sons Dispute Moves Towards Legal Action
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
Right Tools, Rich Insights
