Latest News

LIC insurance behemoth bought 46%shares of RCF

LIC  insurance behemoth bought 46% shares of RCF : Life Insurance Corporation of Bharat (LIC) 1 time once again played the run of a white knight to rescue the part auction of Rashtriya Chemicals as well as Fertilizers (RCF) past times the government.
The insurance behemoth bought 46%, or 31.63 meg of the 69 meg shares on offering of RCF during its offering for sale (OFS) end week.

This is non the starting fourth dimension time LIC has bailed out a regime disinvestment it had bought to a greater extent than than one-half of the bids inwards the ONGC as well as Hindustan Copper offering every bit well.

"We get got non bailed out anyone. We get got examined this (RCF) resultant past times its ain forcefulness as well as thence taken a conclusion to participate. We volition attempt the hereafter issues inwards a like fashion as well as thence accept a call,” D K Mehrotra, chairman of LIC told Business Standard today.

However, an investment banker familiar amongst the evolution said LIC was 'asked to proceed the pulverization dry' for the RCF offering. “As the share-sale was non fifty-fifty one-half covered an hr before the unopen of bids. LIC had to position inwards a large-ticket application,” he said requesting anonymity.

Post the OFS, LIC forthwith holds 6.69% stake inwards RCF, compared to 0.96% earlier.

Shares of RCF today closed at Rs 43.1, nigh 4% below their OFS cost of nigh Rs 45 per share.

Investments made past times LIC
are typically for the long term but the mark-to-market losses on LIC's investments inwards RCF part auction stand upwards at Rs 6.2 crore.

The regime had raised nigh Rs 310 crore past times divesting its 12.5% holdings inwards RCF through the OFS road on March 8.The 69 meg part auction was subscribed 1.3 times as well as volume of the bids had come upwards at a cost of Rs 45.02 per part every bit against the minimum offering cost of Rs 45 per share.

Last year, the state-owned insurance major had bought nigh 377 meg shares (88%) of the 427 meg shares that were on offering during the ONGC share-auction, which was business office of end year's disinvestment programme.

Earlier this yr besides during the Hindustan Copper OFS, LIC had to alternative upwards 22.5 meg shares, to a greater extent than than one-half the full 51.6 meg shares auctioned.

0 Response to "LIC insurance behemoth bought 46%shares of RCF"