LIC hikes stake in Infosys; buys shares worth Rs 1,100cr
State-owned life insurer LIC has shored up its stake in Infosys to 3.82%, purchasing shares worth about Rs 1,100 crore in the April-June quarter.business Updated: Jul 13, 2014 10:57 IST
State-owned life insurer LIC has shored up its stake in Infosys to 3.82%, purchasing shares worth about Rs 1,100 crore in the April-June quarter.
The share purchase came after LIC had lowered stake in the country's second largest software services firm during the past three preceding quarters.
While the exact date of share purchases by LIC could not be ascertained, Infosys last month appointed Vishal Sikka, a former SAP board member, as CEO and managing director.
Life Insurance Corporation of India, the biggest institutional investor in the stock market, which held 3.25% stake in Infosys during the January-March quarter, has increased holding to 3.82% as of June 30, 2014.
However, the state-run firm has been reducing its stake in Infosys since June last year. It held 6.72% stake in IT firm at the end of June 30, 2013, as per the latest data available with the stock exchanges.
Taking into account the current market value of Infosys shares, the 0.57% hike in LIC's holding in the company would be worth about Rs 1,100 crore. Infosys shares closed at Rs 3,325.80 on Friday.
Sikka, the first outsider as well as not part of the co-founder's club to lead the Bangalore-based firm, will take charge of the company from next month.
Also, mentor NR Narayana Murthy stepped down four years before his tenure was to end. He was brought back to head the IT major in June last year, following quarters of laggard performance. Since Murthy's return, Infosys had seen 11 top-level exits.
Apart from LIC, Domestic Institutional Investors (DIIs), too, raised their holding in Infosys to 14.08% during the April-June quarter of 2014 from 13.66% in the preceding three months.
In contrast, Foreign Institutional Investors cut their exposure in Infosys to 41.58% from 42.10% during the period.