NEW DELHI: State-run insurance firm LIC, one of India’s largest institutional investors, has increased its stake in non-banking finance company Capri Global Capital, two-wheeler major Hero MotoCorp and FMCG giant HUL.
LIC increased its stake in Capri Global Capital from 5.04% to 7.06% at an average cost of Rs 624.61 per share. For the acquisition of the additional 2% stake in the NBFC, LIC has invested Rs 221.21 crore.
LIC further raised its stake in Hero Motocorp, India’s largest two-wheeler maker, from 9.163% to 11.256% during the period from April 1, 2021, to June 13, 2022, at an average cost of Rs 3,050.14 and upped its holding in fast moving consumer goods (FMC) giant Hindustan Unilever Limited (HUL) from 4.995 per cent to 5.008 per cent at an average cost of Rs 2,206.93.
While Hero Motocorp share prices closed the Tuesday session at Rs 2,559.40 on the BSE, HUL stock shut shop at Rs 2,174.40 a piece. The disclosure comes at a time when LIC share prices are under pressure. Even as LIC stock ended in green on Tuesday after falling straight for 10 days, it is still down 23% since its listing on May 17. Its fall has been so steep in the last one month that it wiped out 1.70 lakh crore of investors’ wealth.
The finance ministry on Monday again expressed concern over its falling share price after it had hit a low of Rs 663. Recently, the insurance behemoth had informed that it made Rs 42,000 crore worth of realised gains from selling its equity investments in FY22. The gains made in the last fiscal is 16.6% more than the Rs 36,000 crore gains made in FY21, managing director of LIC Raj Kumar said last month. LIC invests nearly 25% of its assets under management (AUM) in equity markets while the remaining sum is invested in government bonds and other instruments.
LIC stock ended in green after falling for 10 days
Even as LIC stock ended in green on Tuesday after falling straight for 10 days, it is still down 23% since its listing on May 17. Share wiped out 1.70 lakh crore of investors’ wealth in the last month