Life Insurance Corporation of India played an important role in the Central Government disinvestment drive in 2018. LIC made a sizeable investment in IPO’s of 4 public sector undertaking as per the analysis of shareholding data.
LIC bought 28 per cent of the total shares on offer in Garden Reach Shipbuilders’ share sale. LIC acquired 7.3 per cent stake in the shipbuilding firm by investing nearly Rs.1 billion in its Rs.3.4-billion maiden offering. Similarly, LIC invested in public issue of Hindustan Aeronautics by mopping up 70 per cent of the shares offered. LIC bought a 7 per cent stake in the defence company for Rs. 28.4 billion during the IPO. Midhani (Mishra Dhatu) and Bharat Dynamics are other recent IPOs to have seen huge participation by LIC. However, Rites and IRCON were two IPOs that managed to sail through without LIC participation.