LIC ups stakes in Tata Consumer, Dabur
Life Insurance Corporation of India raised its ownership in two major consumer goods manufacturers, according to company disclosures on Friday. The state-run insurer lifted its position in Tata Consumer Products to 8.645 percent from 6.633 percent by acquiring nearly 2 crore shares between July and late October. The firm also expanded its Dabur India holdings to 6.985 percent from 4.918 percent after purchasing more than 3.66 crore shares from February through October.
The purchases reflect confidence in consumer product makers despite broader market uncertainty. The insurer attracted substantial investment after authorities removed the goods and services tax from individual life insurance policies last month. Reports indicate the company collected more than 1,100 crore rupees in one day following the tax elimination.
The policy change made traditional life insurance products less expensive for buyers. Analysts expect sales to climb as consumers respond to lower costs. The corporation reported a net profit of 10,957 crore rupees for the quarter ending in June, up nearly 4 percent from the previous year.
