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The fall in ITC shares led to the total value of Life Insurance Corporation of India (LIC) stake falling to a record low of Rs 68,560 crore from Rs 80,028 crore on December 31.

LIC suffered a loss of Rs 11,500 crore due to the government's decision, and common investors also suffered a loss of Rs 7,000 crore;

ITC shares fell sharply in two days following the government's new excise duty on cigarettes. This directly impacted investments in the Life Insurance Corporation of India (LIC). On January 2, ITC shares fell 5% to a new 52-week low of Rs 345.25 per share. However, they later recovered slightly. In the first two trading sessions of 2026, ITC shares fell by more than 14%. 

According to shareholding pattern data for the July-September quarter (FY26), ITC is 100% owned by public shareholders. There is no promoter or promoter group. LIC alone holds a 15.86% stake in ITC, while General Insurance Corporation of India (GIC) holds 1.73% and The New India Assurance Company Limited holds 1.4%.

LIC has incurred a paper loss of ₹11,468 crore due to the sale of ITC shares. At the December 31 closing level, LIC's total stake in ITC was worth ₹80,028 crore. Now, it is at a record low of ₹68,560 crore. 

Thus, the selling of ITC shares wiped out ₹13,740 crore from the portfolios of these three government-owned insurance companies in just two days. It's important to note that this is a notional loss. Until the insurance companies sell the shares at the 52-week low, it will only be considered a paper loss.

ITC shares fell nearly 4% on January 2nd to close at ₹350.10 per share. The stock has fallen more than 13% in the past five days and more than 15% in the past six months. This has resulted in the company's market capitalization being eroded by ₹72,000 crore in two days, now standing at approximately ₹4,38,639 crore. The stock currently has a P/E ratio of 22.59.