Small Cap PSU Stock Slides 3% As LIC Cuts Stake

Shares of National Fertilizer Ltd sunk over 3% on Monday to hit an intraday low of ₹68.45.

What Happened: LIC (Life Insurance Corporation of India) in a regulatory filing on Monday informed that it reduced its shareholding in NFL. LIC’s stake in NFL decreased from 9.275% to 7.257%.

The insurance giant sold around 98.99 lakh shares of the company in the open market from August 10 to October 6 at an average price of Rs 70.58. The total cost of the deal was around ₹69.87 crore.

As per NFL’s shareholding pattern as of June 30, 2023, LIC previously held 4,70,98,218 shares, representing a 9.6% stake in the state-run fertilizer company. As of June, the government had a 74.71% stake in the company.

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The stock slumped after the announcement was made but bounced back sharply before slumping back into the red again. The reason for the brief surge was not immediately clear.

NFL’s intraday chart, courtesy Tradingview.

NFL specializes in the production and marketing of neem-coated urea, bio-fertilizers (solid and liquid), and other related industrial products. The company is also involved in the trading of imported and domestic fertilizers.

Price Action: NFL’s share price was down 0.78% to trade at ₹70.15 in the late hours of trading on Monday.

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