LIC Offloads Stakes in Top Indian Companies in Q4FY26; HDFC Bank and SBI Among Sellers

The Life Insurance Corporation of India (LIC) has made significant changes to its holdings, selling shares in key Indian companies during the fourth quarter of FY26.  

This series of transactions highlights the insurance giant's strategic adjustments amidst a volatile market environment. 

LIC's Major Shareholdings Sale Overview 

Between December 2025 and March 2026, LIC reduced its holdings across several major companies, including HDFC Bank and State Bank of India (SBI).  

A total estimated sell-off amounted to ₹14,000 crore. These movements illustrate LIC's attempt to realign its portfolio in response to market fluctuations and sectoral changes. 

Key Transactions Executed by LIC 

A notable transaction was the reduction of LIC's stake in SBI from 84.51 crore shares to 80.29 crore shares, recording a sell value of ₹4,626 crore.  

While SBI's shares saw a minor decline of 0.29% during this period.  

Similarly, LIC cut its stake in ICICI Bank from 34.43 crore shares to 31.86 crore shares, resulting in a sell value of ₹3,449 crore. This was amidst a share price drop of 10.20%. 

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Impact on Other Companies 

LIC also reduced its holding in Coal India from 71.34 crore shares to 68.07 crore shares at a value of ₹1,431 crore, even as the stock appreciated by 12.89%.  

In Pirmal Finance, LIC decreased its stake to less than 1% ownership by March 2026 from 1.01 shares in December 2025. 

In Grasim Industries, LIC decreased its stake from 4.98 crore shares to 4.51 crore shares, with a sell value of ₹1,291 crore, followed by a stock decline of 9.59%.  

In the financial sector, HDFC Bank saw LIC trimming its stake from 63.57 crore shares to 62.24 crore shares, shedding shares valued at ₹1,145 crore during a period where the stock fell by 26.20%. 

LIC reduced its stake in Britannia Industries from 1.25 crore shares in December to 1.07 crore shares in March, pulling out ₹1,030 crore while the stock value dropped by 10.08%. 

LIC reduced its stake in Larsen & Toubro from 17.27 crore shares to 17.03 crore shares during the quarter, with a net sale value of ₹911 crore as the stock fell 14.19%. 

LIC pared its stake in Steel Authority of India from 37.93 crore shares to 32.41 crore shares in Q4FY26, booking a net sale value of ₹849 crore while the stock gained 3.01%. 

LIC trimmed its holdings in Tata Steel from 90 crore shares in December 2025 to 86.43 crore shares in March 2026, locking in a net sale value of ₹715 crore as the stock rallied 6.54%. 

Conclusion 

LIC's recent strategic portfolio adjustments, involving substantial sales in prominent Indian companies, signify a significant shift amidst changing market dynamics. This portfolio reorganisation by India's largest domestic institutional investor may set a precedent for how institutional investors respond to evolving market conditions. 

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