LIC Lifts Holding above 10.5% in Adani Group Stock

LIC Lifts Holding above 10.5% in Adani Group Stock

Why in News?

LIC has raised its stake in Adani Group–backed ACC Ltd, crossing the 10.50% shareholding mark, as revealed in a recent regulatory filing. This move signals stronger institutional confidence in the cement major.

Highlights of the Recent Acquisition

• LIC purchased an additional 37,82,029 shares of ACC Ltd through open-market transactions between 20 May 2025 and 25 November 2025. As a result of this acquisition, LIC’s total holding rose to 1,98,97,064 shares, representing 10.596% of ACC’s paid-up share capital. Prior to this, LIC held 1,61,15,035 shares, equal to 8.582%. 
• By crossing the 10% shareholding mark, LIC formally becomes a significant institutional investor in ACC Ltd. This level of holding draws regulatory attention and signals strong confidence from one of India’s largest public-sector fund managers. The move also aligns with LIC’s strategy of holding meaningful positions in companies linked to infrastructure and national development, which enhances the stock’s stability in the eyes of the investing public.

Regulatory Significance of Crossing the 10% Shareholding Threshold

• Indian regulations treat the 10 percent shareholding level as a point of significant influence. The Securities and Exchange Board of India created these rules and updated norms after 2015. SEBI requires any investor who crosses this limit to report the change within a short timeline. A company must also record this change because it affects the balance of major shareholders. 
• The law requires both the investor and the company to disclose the new stake. The SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 2011 outline this requirement. The investor must file an official statement that records the new level of ownership. The company must submit the updated information to the stock exchange. 
• The Reserve Bank of India monitors foreign investment and banking sector exposure at set thresholds under its Master Directions. SEBI reviews changes in ownership patterns because such changes may impact public confidence. Oversight protects the rights of smaller investors who may not have enough resources to track these movements.

LIC’s Role as India’s Largest Institutional Investor

• The Life Insurance Corporation of India started its journey in 1956 when the Government of India nationalised 245 private insurers and merged them into one organisation. The government created LIC to bring trust and stability to the life insurance sector. 
• LIC became the largest life insurer within a few years of its creation because it served millions of households. LIC expanded its operations during the 1960s and 1970s when insurance awareness increased in urban and rural regions. LIC invested policyholders’ money in government projects.
• LIC holds a very large share of the Indian life insurance market. LIC maintained a market share above 60 percent in new business premiums in 2023, according to insurance sector reports. LIC served more than 28 crore policyholders by 2024. LIC also developed a strong network of agents who created personal relationships with customers.
• LIC became one of India’s biggest equity investors as its asset base expanded. LIC managed assets worth more than ₹45 lakh crore with a subsequent increase to over ₹51.21 lakh crore by 2024, according to official annual reports. LIC played this role during market slowdowns in 2008, 2013 and 2020 when global shocks affected Indian markets.
• LIC remains majority-owned by the Government of India. LIC supports infrastructure growth by investing in power, transportation and housing projects. LIC also adapts to new digital systems that improve risk assessment. LIC aims to reach younger customers through online platforms.

ACC Ltd: Market Size and Recent Performance

• ACC Ltd (The Associated Cement Companies Limited) stands as one of India’s largest cement and building-materials companies. It became part of Adani Group when the group acquired it in 2022 along with another big cement firm. ACC plays a key role in the group’s ambition to build a large integrated materials business.
• ACC maintains substantial cement manufacturing capacity and operates multiple cement plants and several grinding units across India. The company supplies a diverse product range. It offers premium cement and building-material brands, ready-mix concrete and concrete solutions. 
• In the financial year ended March 2025 (FY25), ACC recorded a total cement and clinker sales volume of 42.2 million tonnes. This represented a 14% year-on-year (YoY) growth compared to the 36.9 million tonnes sold in the previous financial year (FY24). In the same period, its revenue from operations reached ₹21,762 crore.
• In Q3 of FY25 (quarter ended December 2024), ACC reported a sharp jump in consolidated net profit to ₹1,092 crore, more than double its profit from the same quarter the previous year. For Q2 of FY26 (quarter ended September 2025), ACC reported revenue from operations of ₹5,896.16 crore, up about 30% year-on-year. Its net profit surged to ₹1,119.26 crore in that quarter. 
• The performance of ACC Ltd stock showed a significant decline of over 15% in the past year, a 3% fall over six months, a 3% gain in the last three months, remaining flat in the last month, and a roughly 9% return over five years. 
• ACC carries strong brand recognition across India. Under Adani Group’s ownership, this brand strength merges with stable funding and supply-chain support. This combination enhances confidence among investors, clients, and stakeholders.

Implications 

The increase of LIC’s holding in ACC Ltd above the 10 percent threshold signals strong institutional confidence in ACC’s growth under the Adani Group. The higher stake gives LIC greater voting influence in key corporate decisions and strengthens expectations of stricter corporate governance oversight due to LIC’s reputation as India’s largest institutional investor. The change may lift market sentiment because investors often see LIC’s action as a sign of long-term value. The increased stake marks a significant moment for ACC, strengthening its financial credibility and reinforcing its position.