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Updated: March 5, 2012 22:28 IST

LIC stake in ONGC up

Special Correspondent
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Life Insurance Corporation have invested around Rs. 11,450 crore during the auction of ONGC shares on March 1, 2012. File photo
PTI Life Insurance Corporation have invested around Rs. 11,450 crore during the auction of ONGC shares on March 1, 2012. File photo

Life Insurance Corporation's (LIC) holding in Oil and Natural Gas Corporation (ONGC) has risen to 9.48 per cent after the offer for sale of ONGC shares by the Central Government on March 1.

LIC has acquired 37.71 crore shares, or 4.41 per cent of the company, ONGC said in a notice to the Bombay Stock Exchange.

PTI adds:

Taking into account the average price of Rs. 303.67 a share, the country’s largest insurer would have invested around Rs. 11,450 crore during the first ever auction of PSU shares on March 1, 2012.

Life Insurance Corporation (LIC) has bought 37.71 crore shares representing 4.41 per cent stake in ONGC through open market purchase, ONGC said in a filing to the BSE.

The government auctioned 5 per cent of its stake, or 44.77 crore shares, of ONGC on March 1, 2012, fetching Rs. 12,767 crore to the exchequer.

While the ONGC auction was subscribed 98.3 per cent, LIC has picked up over 84 per cent of the shares on offer. The remaining was bought by institutional and retail investors.

With the acquisition of 4.41 per cent, LIC’s stake in ONGC has gone up to 9.48 per cent, the filing added. As per the Insurance regulator IRDA guidelines, an insurance firm’s holding should not exceed 10 per cent in any company.

Shares of ONGC is trading at Rs. 282.85, up 0.71 per cent on the BSE in the afternoon trade on Monday.

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LIC's main role is servicing the Policy holder and enhancing the value of investments it has made as the custodian of policy holders. But it concentrates more on supporting the Govt and gives an helping hand whenever they are in financial difficulty by bailing out.

from:  N Sankar
Posted on: Mar 6, 2012 at 09:04 IST

Exchequer got just 1300 crore rupes from this ONGC FPO because 11450 crore investment by LIC cannot be taken into account here as it is managed by Govt only.I think going forward, PSUs should be made ineligible for investing in disinvestments.

from:  ranjith
Posted on: Mar 5, 2012 at 20:30 IST

This is really a cheating!
The poor policy holders have lost their confidence in LIC and evidently an unwise saving organization.
Future we have to refrain business with LIC

from:  Joseph Mangalath
Posted on: Mar 5, 2012 at 15:54 IST
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