LIC Cuts Stake In This Large Cap Stock, But Shares Keep Climbing

Shares of Sun Pharmaceutical Industries were up in early trade on Friday after Life Insurance Corporation of India (LIC) said it had dumped a large chunk of its stake in the pharmaceutical major.

What Happened: LIC announced in an exchange filing on Thursday that it had divested a 2.011% stake in Sun Pharmaceuticals Industries, diluting its holdings from 12.05 crore shares to 7.23 crore shares.

With this move, LIC’s stake in the pharmaceutical company has decreased from 5.023% to 3.012% of the paid-up capital. The transaction was carried out through the open market between July 22 and September 13 at an average floor price of ₹973.80 per share.

See Also: LIC, HDFC-Backed Large Cap Pharma Hit By Reports Of IT Raid, Tanking Shares On Thursday

Sun Pharmaceutical Industries had reported a net profit of ₹2,022.54 crore for the quarter ending June 2023, representing a 1.86% decline compared to ₹2,060.88 crore in the same period the previous year.

Earlier in the same week, LIC had informed the exchanges that it had cut its stake in rival pharma major Dr. Reddy’s Laboratories.

Over the period from March 10 to September 11, LIC offloaded a 2% stake in Dr. Reddy’s, resulting in LIC holding a 7.628% stake in Dr. Reddy’s, down from 9.681% at the start of that period. These transactions were also executed through the open market route, at an average floor price of ₹5,705.43 per share.

Price Action: Sun Pharma’s share price was up 0.38% at 1,148.20 at the open of trade on Friday.

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Posted In: MoversTrading IdeasLife Insurance Corporation of IndiaSun Pharma