Thursday, January 24, 2013

LIC hikes its stake in Cairn India by 2%

The largest insurer of the country the Life Insurance Corporation (LIC) of India has hikes its stake in Cairn India by 2.064% to 7.088%, according to a notification on Bombay Stock Exchange. The trade was executed through various brokers by a market purchase and was worth Rs 1,283 crore. The total number of shares now being held by LIC in Cairn India now stands at 135,376,217.

The company, however, decreased its stake in pharma company Sanofi India and FMCG Tata Global Beverages. In Sanofi India, it sold about 4.64 lacs shares amounting to a 2.01 per cent stake in the company, diluting its total stake in the company to 3.06 per cent. This sale was carried out between September 18 and December 26.

In Tata Global Beverages, the insurance major sold about 1.28 crore shares (or 2.07 per cent) of the total shares, bringing down its total stake in the company to 7.63 per cent. This sell-off was carried out between August 23 to December 26.

State-run insurance giant is planning to invest Rs 2.4 lacs crore this fiscal year, D.K. Mehrotra, Chairman, LIC said in an interview.

“Our investment is based on the performance of the company vis-à-vis their competitors, market scenario, corporate governance, track record and future earning. We normally do not get influenced by internal happenings,” he added.

Recently, the finance ministry had allowed LIC to hold over 30% stake in any listed company.

Recently, LIC informed the exchanges that it sold over two per cent stake in Maruti Suzuki India over a period of time. After the sale, LIC's total holding in the carmaker reduced to a little over 10 per cent.



( Source: InsuringIndia.com )

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