LIC hikes stake in Infosys to 6.7%; buys share worth Rs 1200 cr
State-run Life Insurance Corporation of India (LIC) has shored up its stake in Infosys to 6.72 percent, with an estimated purchase of shares worth over Rs 1,200 crore during April-June quarter.
New Delhi: State-run Life Insurance Corporation of India (LIC) has shored up its stake in Infosys to 6.72 percent, with an estimated purchase of shares worth over Rs 1,200 crore during April-June quarter.
While the exact date of share purchases by LIC could not be ascertained, Infosys towards the end of quarter saw the return of its founder NR Narayana Murthy as executive chairman.
The appointment assumed significance as the company had disappointed investors with poor earnings in the last nine quarters and lost ground to smaller rivals.
LIC, the biggest institutional investor in the stock market, held 5.96 percent stake in Infosys during the January-March quarter, which has now gone up to 6.72 percent as of June 30, as per the latest data available with the stock exchanges.
During the October-December quarter 2012, LIC's stake in Infosys stood at 7.24 percent
Taking into account the average market value of Infosys shares, the 0.76 percent increase in LIC's holding in the company would be worth about Rs 1,274 crore.
The Infosys scrip has moved in a range from about Rs 2,100 level to around Rs 3,000 in the past one year. It is at present trading at Rs 2,900 levels on the BSE.
LIC appears to have bought shares when Foreign Institutional Investors (FIIs) marginally shed their stake. FII holding in Infosys fell from 40.52 percent during the January-March quarter 2013, to 39.55 percent in April-June of this year.
Domestic institutional investors hiked their holding from 17.51 percent to 18.28 percent during the same period, shows BSE data.
Meanwhile, Infosys had reported nearly four percent rise in consolidated net profit to Rs 2,374 crore for the first quarter ended June 30, 2013. The company's consolidated revenue was up 17.2 percent to Rs 11,267 crore during the period.