LIC Raises Stake In LTIMindtree To Over 7%

Life Insurance Corporation of India Ltd. has increased its stake in LTIMindtree Ltd. from 5.033% to 7.034%, according to an exchange filing on Thursday.

The state-run insurer raised its stake by 2.001%—from 1.49 crore to 2.08 crore shares—in the information technology major between Mar. 20 and Nov. 19 this year via open market purchases, the filing showed. The shares were acquired at an average price of Rs 4,950.8 apiece, it added.

On the basis of the average buying price, the overall value at which the 2.001% stake was acquired was calculated as approximately Rs 2,934.51 crore.

As per the shareholding pattern available with the BSE for the period ended Sept. 30, a total of 31.38% stake in LTIMindtree is held by public shareholders, whereas promoter entities own 68.6%. The company, which is a subsidiary of Larsen and Toubro Ltd., has a market capitalisation of Rs 1.74 lakh crore.

LIC's increase of stake in LTIMindtree was disclosed days after the insurer, on Nov. 12, reported a reduction in its shareholding in Tata Power from 5.906% to 3.881%. It sold more than 2% stake in the power firm for about Rs 2,888 crore.

On Thursday, shares of LIC closed 1.44% lower at Rs 881.95 apiece on the NSE, compared to a 0.72% decline in the benchmark Nifty 50. The stock has risen by 5.94% in the last 12 months and by 44.37% 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 31.7%.