LIC Raises Stake in SAIL to 8.687%: A Strategic Investment Move
In a significant development, India’s largest life insurer, LIC, has increased its shareholding in SAIL, the prominent government-owned steel producer. The insurer’s stake has risen by 2.001%, reaching 8.687% in SAIL. This transaction took place through open market purchases carried out in multiple tranches. Notably, leading brokerage firm ICICI Securities has recently recommended adding SAIL stock to investment portfolios.
According to LIC’s regulatory filing, the insurer’s shareholding in SAIL has surged from over 27.61 crore equity shares to 35.88 crore equity shares. This increase signifies that LIC’s stake, which was originally at 6.686%, has now reached 8.687% of SAIL’s paid-up capital.
The shares were acquired at an average price of ₹66.18 per share in SAIL.
LIC disclosed that this 2.001% stake increment occurred between October 14, 2021, and June 8, 2023, through open-market purchases.
During the period from October 14, 2021, to June 8, 2023, LIC purchased more than 8.26 crore equity shares in SAIL.
As of the end of the quarter on March 31, 2023, LIC’s shareholding in SAIL amounted to 28.64 crore equity shares, according to the latest shareholding pattern.
Hence, from April 1st to June 8th, LIC purchased an additional 7.24 crore equity shares in SAIL.
SAIL, recognized as one of India’s leading steel-making companies and a Maharatna enterprise, manufactures and markets a diverse range of steel products.
Also Read: HAL board to discuss stock split in June 27 meeting
Considering SAIL’s current market price, LIC’s stake in the company is valued at approximately ₹2,974.52 crore.
On the Bombay Stock Exchange (BSE), SAIL’s share price closed at ₹82.90 per share, reflecting a 1.38% decrease. LIC’s share price, on the other hand, closed marginally lower on Friday compared to the previous session, at ₹601.75 per share.
In its research note on the metal sector dated June 9th, ICICI Securities recommended adding SAIL stock to portfolios, setting a target price of ₹92 per share.
About LIC:
Life Insurance Corporation of India (LIC) is a renowned Indian multinational public sector life insurance company based in Mumbai. With a widespread presence, LIC operates branches not only in India but also overseas. Notably, LIC holds the distinction of being the largest insurance company in India and stands as the leading institutional investor. As of May 2022, LIC manages an impressive total asset value of ₹41 trillion.
For more of the Latest News, Click Here