Has LIC Increased Its Holdings in Tata Consumer Products and Dabur India?
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Synopsis
In a significant move, LIC has raised its stakes in Tata Consumer Products and Dabur India, indicating a strong commitment to the thriving FMCG sector amidst market volatility. The increase in shareholding reflects LIC's strategy to capitalize on growth opportunities in consumer goods and the recent tax relief on insurance policies.
Key Takeaways
- LIC increased its stake in Tata Consumer Products from 6.633% to 8.645%.
- LIC boosted its stake in Dabur India from 4.918% to 6.985%.
- Investment reflects confidence in the consumer goods sector.
- LIC reported inflows of over Rs 1,100 crore after GST removal.
- Q1 FY26 profit reached Rs 10,957 crore.
New Delhi, Oct 24 (NationPress) The Life Insurance Corporation of India (LIC) has augmented its ownership stake in two prominent FMCG players — Tata Consumer Products and Dabur India — as revealed in regulatory filings submitted by both companies on Friday.
LIC has raised its share in Tata Consumer Products from 6.633 percent to 8.645 percent, reflecting an increase of 2.012 percentage points. Between July 11 and October 23, 2025, over 1.99 crore worth of equity shares were acquired as part of this additional investment.
In a parallel move, LIC has boosted its stake in Dabur India by 2.067 percentage points, from 4.918 percent to 6.985 percent. Between February 18 and October 23 of this year, the public sector insurer procured more than 3.66 crore shares.
This strategic move underscores LIC's ongoing commitment to India's rapidly growing consumer goods sector, which has remained resilient amid broader market fluctuations.
Last month, LIC noted that it garnered substantial investor interest on the first day following the government's removal of the goods and services tax (GST) on individual traditional life insurance policies.
Reports indicate that the insurer saw inflows exceeding Rs 1,100 crore within a single day. This is significant, given that retail policyholders typically contribute around Rs 5,000 crore in premiums each month.
The optimism among policyholders and the likely uplift for the insurance industry are highlighted by the inflows recorded on the first day post-tax relief.
Industry analysts suggest that the abolition of GST has lowered costs and enhanced the attractiveness of traditional life insurance plans for individual buyers, which is expected to drive sales in the months ahead.
Earlier this fiscal year, LIC reported a consistent increase in both profits and premium collections.
The company recorded a consolidated net profit of Rs 10,957 crore in the April-June quarter (Q1) of FY26, representing a 3.91 percent rise compared to the same quarter in the previous fiscal year (Q1 FY25).
Point of View
I believe that LIC's increased holdings in Tata Consumer Products and Dabur India reflect a robust strategy to enhance its portfolio in the vital FMCG sector. This move not only signifies confidence in the consumer goods market but also showcases LIC's adaptability to market changes, especially in light of recent tax reforms.
NationPress
24/10/2025
Frequently Asked Questions
What companies did LIC increase its stakes in?
LIC increased its stakes in Tata Consumer Products and Dabur India.
By how much did LIC increase its stake in Tata Consumer Products?
LIC raised its stake in Tata Consumer Products from 6.633 percent to 8.645 percent, an increase of 2.012 percentage points.
How many shares did LIC acquire in Dabur India?
LIC acquired over 3.66 crore shares in Dabur India.
What was the impact of GST elimination on LIC?
The removal of GST on individual life insurance policies attracted over Rs 1,100 crore in inflows in just one day.
What was LIC's profit in Q1 FY26?
LIC posted a consolidated net profit of Rs 10,957 crore in the April-June quarter of FY26.
