LIC’s Stake in NSE Rises Amid IPO Buzz and Legal Resolution Hopes

Life Insurance Corporation of India (LIC) has seen a sharp rise in the value of its investment in the National Stock Exchange (NSE), making it LIC’s fifth most valuable holding. This comes amid growing anticipation around NSE’s long-awaited Initial Public Offering (IPO) and progress on resolving key regulatory issues.

LIC’s Investment Now Over ₹66,000 Crore

As of March 2025, LIC holds a 10.7% stake in NSE, amounting to 26.53 crore shares. At a current unlisted market price of ₹2,500 per share, the investment is valued at over ₹66,319 crore.

This places NSE just behind LIC’s top four holdings—Reliance Industries (₹1.34 lakh crore), ITC (₹80,874 crore), HDFC Bank (₹72,180 crore), and SBI (₹68,031 crore). Other notable holdings include L&T (₹66,272 crore) and Infosys (₹62,432 crore). LIC’s entire equity portfolio spans 351 stocks, valued at approximately ₹15.18 lakh crore.

Other major NSE stakeholders include Stock Holding Corporation of India (worth ₹27,500 crore), SBI (₹19,961 crore), and investor Radhakishan Damani (₹9,771 crore).

IPO Optimism Lifts Valuation

NSE’s estimated valuation has climbed to ₹5.7 lakh crore, placing it among India’s 10 most valuable companies—despite not being publicly listed. The unlisted share price has surged over 50% in the past month, driven by renewed IPO optimism.

Co-location Case Settlement in Progress

Adding to the positive sentiment, NSE has taken steps to settle long-pending regulatory issues. On June 20, the exchange filed a consent application with SEBI for the co-location and dark fiber cases, offering to pay ₹1,388 crore. If accepted, SEBI may issue a No-Objection Certificate (NOC) by late July or August.

The cases involve allegations of unfair access provided to select brokers via closer server placement (co-location) and high-speed data lines (dark fiber).

Read more: The ₹72 Lakh Crore Rally: Are You Missing Out on India's Biggest Boom?

Conclusion

The growing value of LIC’s stake in NSE reflects rising investor confidence in the exchange’s future. With regulatory clarity, a potential resolution of long-pending legal cases, and SEBI’s positive stance on the IPO, NSE is well-positioned to make its market debut. If the IPO proceeds as expected, it could mark a major milestone for India’s financial markets.

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