LIC picks up 60% of stake on sale in NTPC divestment

The state-run Life Insurance Corporation of India has bought nearly 60 per cent of the National Thermal Power Corp shares sold by the government to raise Rs5,030 crore through the disinvestment, taking LIC's stake in the country's largest power producer to 12.98 per cent.

LIC's stake has increased from 10.03 per cent at the end of the December quarter following its participation in the NTPC offer for sale (OFS) which happened on 23-24 February. The insurer bought over 24.31 crore shares or 2.95 per cent of NTPC stock during the OFS.

LIC now holds over 107.05 crore shares or 12.98 per cent stakes in NTPC, according to a stock exchange filing.

The government had sold over 41.22 crore shares or 5 per cent stake in NTPC at a floor price of Rs122 each.

Over 32.98 crore shares were offered to institutional buyers on 23 February while the remaining over 8.24 crore shares were reserved for retail investors.

Although institutional investors' portion was oversubscribed 1.8 times, the demand from retail investors was lacklustre with bids coming in for only 44 per cent of the shares reserved for them. The unsubscribed portion of retailers was then offered to institutional buyers.

LIC has been regularly salvaging the government's public sector unit (PSU) stake sale plan. In August last year, it had bought nearly 90 per cent of Indian Oil Corporation (IOC) shares sold by the government in its Rs9,379-crore disinvestment.