14-01-2021
Top institutional investor LIC buys stake in Nippon Life AMC
Insurance AlertssTop institutional investor LIC buys stake in Nippon Life AMC
NEW DELHI: Life Insurance Corporation (LIC), India’s largest domestic institutional investor, emerged a major minority shareholder in Nippon Life India Asset Management, the company that runs Nippon India Mutual Fund.
Life Insurance Corporation of India holds 90,62,231 shares or 1.48 per cent in the company, according to shareholder data as of December. The stake is valued at Rs 283 crore at the current market price.
It could not be ascertained if LIC held any shares in the firm earlier, as companies are required to publish the name of a shareholder only if its individual holding rises above 1 per cent. Buying by LIC brought the stake of all insurance companies in Nippon Life India Asset Management to 1.71 per cent from 0.42 per cent.
Shares in the Nippon Life AMC traded up 1.72 per cent at Rs 312.65. The stock is up about 50 per cent from its March lows. But it still trades much lower than 52-week highs hit during February 2020.
At the same time, mutual fund houses booked profits and cut their stake to 2.69 per cent from 3.12 per cent at the end of September quarter. Alternate investment funds also trimmed their stake to 2.20 per cent from 2.78 per cent.
Retail and HNI investors also sold part of their holdings, as their stake in the company came down to 4.34 per cent and 1.05 per cent, respectively. Earlier, they had held 5.07 and 1.17 per cent in the firm.
Many analysts believe asset management companies could be major beneficiaries of increasing financialisation among Indians.
Source: The Economic Times
