LIC plans to retain its substantial 10.72% stake in the NSE post-IPO, citing long-term value and strategic influence, as the insurer shifts towards digital growth and customer-centric products.
Life Insurance Corporation of India is showing no urgency to trim its stake in the National Stock Exchange, with chairman and managing director R. Doraiswamy signalling that the insurer may hold on to the investment even after the exchange’s planned initial public offering.
Speaking in an exclusive interview with Zee Business host Anil Singhvi, Doraiswamy said LIC had entered the exchange only to the extent needed for regulatory compliance and did not feel compelled to sell once other investors showed strong interest in the offer for sale. He said the exchange’s scale and its dominant position in India’s equity and derivatives trading made it an asset worth watching rather than exiting.
The stance is notable because LIC’s holding is substantial. Mint reported that the insurer owns 10.72% of the NSE, a stake that could be valued at more than ₹53,000 crore at a share price of ₹2,000. Moneycontrol said that at ₹2,100 a share, the holding would be worth about ₹56,105 crore and could become LIC’s fifth-largest equity investment, ahead of names such as Infosys, Tata Consultancy Services and HDFC Bank.
LIC’s decision also appears tied to control and visibility. According to Mint, retaining the stake would allow the insurer to keep the option of appointing a director to the NSE board, preserving influence as the exchange moves towards a public listing. The Economic Times reported that LIC views the investment as a long-term holding rather than a trade to be monetised quickly.
Doraiswamy said the IPO could still unlock value by shifting LIC’s accounting from book value towards a market-based valuation. He also left open the possibility that LIC could buy shares after the listing if pricing and returns were attractive enough. That would fit with what he described as LIC’s habit of studying each issue carefully before deciding whether to invest further.
The comments come against the backdrop of LIC’s Rs 31,000 crore offer for sale, which Doraiswamy said drew strong investor interest and reinforced confidence that the market could absorb a large transaction. Mint reported that the NSE’s draft prospectus contemplates an offer for sale of up to 149 million shares by existing shareholders, making it one of India’s biggest listings. LIC’s decision not to sell in the IPO suggests it sees greater upside in staying put.
Doraiswamy also used the interview to sketch LIC’s broader direction. He said the insurer is working to become more digital-first, while building products aimed at younger customers and prioritising profitable growth over market share alone. In LIC’s annual report, he also pointed to a push towards protection-led products and customer-focused innovation, underscoring the company’s attempt to modernise without losing the scale and stability that define it. The insurer remains one of India’s largest institutional investors, with more than Rs 57 lakh crore in total investments, and Doraiswamy said its approach remains contrarian: buying when markets fall and booking gains when they rise.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
