State-run Life Insurance Corporation of India (LIC) has increased its shareholding in leading asset management company HDFC AMC by buying additional shares through open market transactions. The two companies in their regulatory filings to the exchange informed about the transactions via regulatory filings on December 15 (Thursday).
The insurance behemoth has purchased an additional 43.27 lakh equity shares, or a 2.03 per cent stake, in HDFC Asset Management Company. The company informed that this stake was bought by LIC during March 30, 2022 and December 14, 2022.
With this, the life insurance major has increased its stake in HDFC AMC to 9.053 per cent, from 7.024 per cent earlier.
According to the exchange filing, in terms of shares, now LIC holds 1.93 crore shares in HDFC AMC, which were worth Rs 4,359.4 crore at December 15 closing price.
"Corporation's shareholding in HDFC Asset Management Company has increased from 1.49 crore shares to 1.93 crore shares increasing its shareholding from 7.024 per cent to 9.053 per cent of the paid-up capital of the said company," LIC said in its BSE filing.
The state-owned insurer also said the average buying cost of the 2.029 per cent stake is Rs 1,954.24 per share.
On Thursday, HDFC AMC shares settled at Rs 2,257.40 apiece, down six-tenth of a per cent. The current market cap of the company stood at Rs 48,154 crore.
On Friday, shares of LIC were trading at Rs 698 apiece, down 1.50 per cent on the BSE, whereas shares of HDFC AMC were trading at Rs 2,218.70 per share, down 1.86 per cent on the BSE.
Earlier this month, LIC has increased its stake in HDFC Ltd to over 5 per cent following the acquisition of shares from the open market. LIC purchased 1.2 lakh shares from the open market hiking its stake in the company to 5.003 per cent, mortgage lender HDFC Ltd said in a regulatory filing.