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IIE DIGITAL DESK : The Life Insurance Corporation of India (LIC), the nation’s largest institutional investor, now holds a commanding 10.7% stake in the National Stock Exchange (NSE), making it one of the insurer's six most valuable equity holdings—even though the exchange remains unlisted. According to data from the March 2025 quarter analyzed by Economic Times, LIC’s stake represents 26.53 crore shares, valued at approximately ₹63,374 crore, based on an unlisted per-share price of around ₹2,389 .

LIC’s investment in NSE stands shoulder-to-shoulder with its stakes in some of India’s corporate powerhouses. Here’s how it compares to the insurer’s five largest holdings:

• Reliance Industries: Holds 6.74% (89.39 crore shares), valued at ₹1.34 lakh crore .

• ITC: 15.52% stake (194.2 crore shares), worth ₹80,602 crore.

• HDFC Bank: 5.45% (36.1 crore shares), valued at ₹72,591 crore .

• State Bank of India: 9.38% (82.9 crore shares), worth ₹68,027 crore .

• Larsen & Toubro: 13.25% (18 crore shares), valued at ₹66,053 crore .

At ₹63,374 crore, LIC’s investment in NSE ranks sixth—just behind L&T’s stake . Moneycontrol positions NSE even higher, as LIC’s fifth most valuable holding among listed and unlisted entities, valued at over ₹66,319 crore based on different valuation assumptions .

Despite NSE’s unlisted status, LIC has repeatedly increased its stake and now stands as the exchange’s largest investor with a 10.7% holding .This investment underscores LIC’s commitment to backing India’s financial infrastructure—one that could yield considerable returns if NSE proceeds with its long-anticipated Initial Public Offering (IPO).

The insurer’s portfolio is heavily tilted toward blue-chip equities, reflecting a cautious yet strategic risk allocation. Additionally, LIC holds stakes in other financial sector entities: Stock Holding Corporation (4.44%), SBI Capital Markets (4.33%), and State Bank of India (3.23%) .

An NSE IPO, which has been under internal discussion for some time, could unlock additional value for LIC. An offering at current market valuations could provide LIC with substantial capital gains and improved liquidity for future investments. While discussions continue, the fact that an IPO remains on the table places LIC’s large stake under a positive spotlight.

Earlier in Q4 FY2025, LIC actively reshuffled its investments—boosting positions in heavyweights like Reliance Industries, Tata Motors, SBI, and Patanjali Foods while scaling down exposure to ICICI Bank, Infosys, TCS, and Bajaj Financials . The insurer's deep investment in NSE aligns with this pattern of focusing on financial infrastructure and enduring sectors.

LIC’s portfolio, totaling approximately ₹15 lakh crore, is heavily weighted toward large-cap and financial services stocks . Its strategic positioning across both listed giants and a high-stake in the unlisted NSE reveals confidence in the long-term resilience of India’s financial markets. Furthermore, with a potential IPO on the horizon, LIC’s NSE stake may serve as a significant value catalyst.

Curious about how LIC’s NSE holding compares to Vanguard or mutual funds, or what an NSE IPO timeline might look like? I can delve deeper with follow-up insights.