LIC Cuts Stake In Tata Power By Over 2% Via Open Market Sales

Life Insurance Corporation of India Ltd. has reduced its stake in Tata Power Co. from 5.906% to 3.881%, an exchange filing stated on Tuesday.

The state-run insurer sold more than 2% stake in the power firm for about Rs 2,888 crore, according to the regulatory filing. The stake was offloaded via open market sales between June 20 and Nov. 11, 2024.

The sale of stake reduced LIC's shareholding in Tata Power from 18.87 crore shares to 12.39 crore shares, the filing showed. The shares were sold at an average price of Rs 446.4 apiece, it added.

Tata Power, an arm of the salt-to-software conglomerate Tata Group, is majorly held by public shareholders. As per the shareholding pattern available with the BSE for the period ended Sept. 30, public shareholders own 53.1% stake in the company, whereas promoter entities owned 46.86%.

LIC, which holds stake in an array of listed companies, posted a 3.7% year-on-year decline in its consolidated net profit to Rs 7,729 crore in the quarter ended Sept. 30. However, its net premium income grew 12% to Rs 1.2 lakh crore.

Shares of LIC closed 0.29% higher at Rs 921.15 apiece on the NSE, compared to a 1.07% decline in the benchmark Nifty 50. It has risen by 50.95% in the last 12 months and by 10.65% on a year-to-date basis.

Fifteen out of 20 analysts tracking LIC have a 'buy' rating on its stock, four recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 26.1%.