Life Insurance Corporation of India (LIC), the country's largest insurer, has increased its stakes in Infosys to a record 6.3 per cent, with share purchases worth an estimated Rs2,000 crore, in the first quarter of the current fiscal.
With the purchase, LIC, also one of the biggest investors in the Indian stock market, upped its stake in the IT major to 6.3 per cent from 4.9 per cent in the quarter ended 30 June, 2012.
On the basis of the average market price during the period, LIC could have increased its holding in Infosys by over Rs2,000 crore. The public sector insurer is the largest non-promoter shareholder of the company.
The stake hike came even as a number of foreign investors cut their holding in the IT company - which is known as the bellwether stock in the Indian IT space. In recent times, however, concerns have been growing about its future growth prospects.
The IT major's stock slumped sharply yesterday after its first-quarter results turned out to be disappointing and continued to remain week into the morning today. The stock retreated 0.7 per cent to Rs2,250 on the BSE in mid-day trade, as against a 52-week high of Rs2,990 on 22 February 2012.
The overall FII holding in Infosys slid from 39 per cent to around 38 per cent in the last quarter, even as investors like Aberdeen, Oppenheimer, Franklin Templeton, Vanguard and Singapore government's investment arm marginally reduced their stakes in the Indian IT firm.