LIC Reshuffles Portfolio as Insurer Cuts NBCC Stake and Lifts ACC Holding

Life Insurance Corporation of India (LIC) has executed a significant portfolio rejig, trimming its stake in NBCC (India) while simultaneously increasing its holding in ACC, an Adani Group company. The dual move, disclosed in separate exchange filings on November 28, reflects the insurer’s rebalancing strategy amid divergent performances across India’s infrastructure and cement sectors.

Shares of LIC traded nearly 1% lower at ₹894.60, while NBCC moved slightly in the green. ACC slipped over 1% to ₹1,850 around 1:35 pm, reacting mildly to the disclosures.

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LIC Reduces NBCC Stake to 4.47% After Multi-Year Selloff

The insurer sold 2.071% of its NBCC holdings between April 25, 2018, and November 24, 2025, marking a slow and steady exit spread over more than seven years.

NBCC’s shareholding pattern as on September 30, 2025, shows the President of India as the largest promoter with a 61.75% stake. NBCC remains a core public sector enterprise involved in project management consultancy, redevelopment, and civil construction.

NBCC’s Strong Q2 Numbers Support Stock Sentiment

Earlier this month, NBCC posted an impressive 26% YoY rise in consolidated net profit to ₹153.5 crore for Q2 FY26, compared with ₹122.12 crore last year.
Revenue from operations surged 19% YoY to ₹2,910.2 crore, underscoring strong execution momentum in ongoing redevelopment and government-driven infrastructure projects.

Despite LIC reducing its stake, NBCC’s operational performance appears firmly intact, supported by its robust project pipeline.

LIC Increases Stake in ACC to 10.59% Through Market Purchases

In contrast to its exit from NBCC, LIC has raised its stake in ACC by an additional 2%, taking total shareholding to 10.596% from 8.582% earlier.

The acquisition was carried out through open-market purchases between May 20 and November 25, 2025, as disclosed by ACC in its filing. The move signals LIC’s confidence in the cement major’s growth trajectory under the Adani Group’s stewardship.

ACC’s latest shareholding pattern (September 30, 2025) shows Ambuja Cements, also part of the Adani portfolio, holding a 50.55% controlling stake.

ACC Delivers Exceptional Q2 FY26 Performance

In October, ACC reported a remarkable 461% YoY jump in consolidated net profit to ₹1,119 crore, up from just ₹200 crore in Q2 FY25.
Revenue rose 30% YoY to ₹5,896 crore, reflecting strong demand recovery, improved pricing environment, and efficiency gains after integration with the Adani Group.

The exceptional earnings rebound appears to be a key driver of LIC’s increased confidence in the cement major.

LIC’s Broader Portfolio Moves Reflect Sector Rotation and Rebalancing

Notably, LIC also reduced its stake in Bharat Petroleum Corporation Ltd (BPCL) earlier this month to 6.75% from 8.75%, indicating ongoing adjustments across its large-cap holdings.

Strategic Interpretation of the Moves

• NBCC stake trimming may reflect LIC’s profit-booking strategy after steady gains, along with moderation in PSU construction valuations.

• ACC stake increase aligns with the ongoing infrastructure boom, cement demand revival, and strong operational turnaround under the Adani Group.

• BPCL reduction suggests a cautious stance toward energy PSUs amid global crude volatility and narrowing marketing margins.

Collectively, these moves showcase LIC’s effort to optimize returns while balancing risks across cyclical and defensive sectors.

NBCC and ACC Stocks React Mildly to LIC’s Stake Adjustments

NBCC showed marginal gains during the session as investors focused on its positive quarterly earnings rather than LIC’s gradual stake sale. ACC, however, dipped slightly, likely reflecting profit booking after a strong run-up in recent quarters.

LIC’s own stock also traded slightly lower, though sentiment remains steady given the insurer’s diversified portfolio and long-term investment horizon.

Outlook: LIC’s Rejig Signals Confidence in Cement, Caution in PSUs

The contrasting moves—trimming NBCC while increasing ACC—signal LIC’s preference for companies showing strong earnings momentum, sectoral tailwinds, and visibility on long-term returns.

As infrastructure spending remains robust and the Adani Group accelerates capacity expansion, ACC stands to benefit from high cement demand. Meanwhile, NBCC continues to be a PSU favourite, but valuations and slower growth visibility may have prompted LIC’s partial exit.

Investors will be watching whether LIC continues this sector rotation in the coming quarters as macro conditions evolve.

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