Also read: Rangebound market: Morgan Stanley MF says bet on equities
"LIC has a stated intention of participating in any good issue, whether it is from the government or from the private sector. The second point is that most of the government companies which are lined up are all fundamentally very sound and makes a good case for investment," he explained.
Sarkar also added that the public sector divestments lined up for the near-term are fundamentally sound. In the last two years, its equity investments have touched Rs 45,000 crore, he informed. Besides, they need not exhaust the 30 percent investment limit in public sector companies, said Sarkar.
As far as LIC's decision to invest in PSUs are concerned, it will depend on growth prospects and investments in secondary market will be dependent on issuances, he explained. Going forward, LIC expects to invest over Rs 20,000 crore in the equity market in Q4.
Here is the edited transcript of the interview on CNBC-TV18.
Q: We have been reading a lot of reports about domestic institutional selling continuously over the last many months. Has LIC been a net seller over the last three months in equities and if yes, to what kind of amount would you say?
A: LIC is a long-term and systematic investor. That way, I can even generalize by saying that all the life insurance companies who are in the traditional life insurance business are all systematic investors. So we invest in all phases of the market and on your question of whether we have been net sellers, I don't think we have been net sellers, we have only been net buyers during the year.
Q: I asked because there is a perception that you have been actually raising some cash to be able to subscribe to some of the PSU paper which will come through in terms of divestments from the government to create some headroom for those kind of investments. Is that true that you have been creating some kind of a chest for PSU purchases?
A: These type of rumours are cyclical, they keep on happening and as you know that in an insurance business, funds flow in regularly. One does not have to create any chest for a specific investment and it is not the first time that we are making investments and participating in PSU disinvestment. I don't think that is correct at all.
Q: Could you update us on what the net buy figure was for LIC, either for the quarter ended December or the most recent data that you would have?
A: I don't have the net buy figure but, till about December end we have invested about Rs 21,000 crore on a gross basis in the market.
Q: Between now and the end of this financial year, there will be quite a few government issuances whether it is Oil India or National Thermal Power Corporation (NTPC). Does LIC have a stated intention of participating and increasing stake in the companies?
A: The first point is LIC has a stated intention of participating in any good issue, whether it is from the government or from the private sector. The second point is that most of the government companies which are lined up are all fundamentally very sound. Most of them are cash rich companies and if the pricing is good and depending on the method of selling it undertakes, it is a very good case for investment.
Anda sedang membaca artikel tentang
Expect to invest over Rs 20,000cr in equities in Q4: LIC
Dengan url
https://kesehatanda.blogspot.com/2013/01/expect-to-invest-over-rs-20000cr-in.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Expect to invest over Rs 20,000cr in equities in Q4: LIC
namun jangan lupa untuk meletakkan link
Expect to invest over Rs 20,000cr in equities in Q4: LIC
sebagai sumbernya
0 komentar:
Posting Komentar