Leading life insurer LIC cuts stake in NHPC to 3.186% from earlier 5.203%

India's largest life insurer, LIC on Wednesday announced that it has diluted its stake in the power-generating firm, NHPC. The insurer reduced its shareholding in NHPC by 2.017% in a series of tranches. 

As per the regulatory filing, LIC diluted its shareholding to 3,19,981,616 equity shares in NHPC, representing 3.186% in the latter.

Earlier, LIC's stake stood at 5,22,611,195 equity shares or 5.203% in NHPC.

That being said, LIC offloaded about 2.017% in NHPC.

Generally, listed firms are required to disclose any changes in ownership exceeding 2%, as per the regulatory guidelines.

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The sale was carried in the open market from October 18, 2022, to May 23, 2023. The average price of the sale was ₹41.10 per share in NHPC which is at a discount compared to the current market price.

LIC has been reducing its stake in NHPC on several occasions.

In the fourth quarter of FY23, LIC had reduced its stake to 3.48%. By end of March 2023 quarter, LIC's shares were to the tune of 34,91,42,900 equity shares in NHPC, as per the shareholding pattern on BSE.

That means, from April 2023 till May 23rd, LIC dumped 2,91,61,284 equity shares in NHPC.

In October last year, LIC trimmed its shareholding to 5.203% from earlier 7.230%.

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On Wednesday, NHPC's share price stood at ₹42.97 apiece down by 0.37% on BSE. The stock traded in the range of ₹43.58 apiece to ₹42.85 apiece. Its market cap is over ₹43,163 crore.

NHPC is primarily involved in the generation and sale of bulk power to various Power Utilities.

Meanwhile, LIC share price closed at ₹593.55 apiece up by 0.61%.

NHPC will announce its financial results for Q4 of FY23 on May 29th.