LIC acquires Rs 8077 cr shares in IOC

“Life Insurance Corporation of India has submitted the disclosures under Reg. 29 (2) of Sebi (SAST) Regulations, 2011”, the company said in a filing to the Bombay Stock Exchange, adding that the life insurer acquired 20.87 crore shares amounting to 8.59 per cent stake.

The government holds 67.57% stake in the India’s largest oil marketing company.

Having announced a move on Indian Oil on Friday, hoping to capitalise on strong refining margins, the Indian government had little choice but to press ahead with the sale of a 10 percent stake in the refiner and fuel retailer on Monday. As per this, the government is expected to receive Rs 95 billion for 10% stake sale through OFS.

Interestingly, the IOC share jumped 4.36% in volatile trade on Tuesday, reflecting a mark-to-market gain of Rs 161.75 crore on LIC’ investment.

LIC, India’s biggest investor, has in the past dug into its pockets to prop up government sales, buying up state banks and government mining firms. In December 2014, LIC took up more than 72% of the shares offered in the Steel Authority of India (SAIL) auction.

Shares of Indian Oil Corporation hit a high of almost 5% on the back of a MoU signed between Indian Oil Corporation and Nepal Oil Corporation. In addition, the department of disinvestment (DoD) has also proposed to conduct a follow-on offer in CPSE ETFs to meet its record disinvestment target of Rs 69,500 crore.