LIC Pares Stake Worth Rs 314 Crore In Mahanagar Gas Via Open Market Sales

Life Insurance Corp. pared a stake worth around Rs 314 crore in Mahanagar Gas Ltd. through open market sales, according to an exchange filing made by the state-run insurer on Friday.

The shares were offloaded between Sept. 12 and Sept. 26. Cumulatively, LIC sold 20.7 lakh shares for an average price of Rs 1,521.3 apiece, it said.

The stake sale has lowered LIC's shareholding in the public sector gas distribution company by 2.1%. Before the shares were offloaded, the company held 89.2 lakh shares, or a 9.03% stake in MGL. It has now come down to 68.5 lakh shares or a 6.9% stake.

MGL is a major player in the city gas distribution business, holding the bulk of the market share in Mumbai and the adjoining Raigad region.

Last week, LIC said it reduced its stake in DCM Shriram Industries Ltd. from 4.6% to 2% through a series of transactions over the past three years.

Earlier this month, on Sept. 9, the insurer said it increased its shareholding in Container Corp. from 5.77% to 7.87% through open market purchase.

Shares of LIC closed 0.37% lower at Rs 1,024.25 apiece on the NSE, compared to a 0.14% decline in the benchmark Nifty 50. On a year-to-date basis, the stock has risen 23%, while the surge has been sharper at 58% over the past 12 months.

Out of the 20 analysts tracking the company, 13 have a 'buy' rating on the stock, four suggest a 'hold', and three recommend a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 14.2%.