LIC now owns more than 5% stake in HDFC

6 Dec 2022 , 08:54 AM

The largest insurer in the nation, Life Insurance Corporation of India (LIC), has expanded its holding in HDFC Ltd. to over 5% as a result of buying shares on the open market.

Mortgage lender HDFC Ltd. reported in a regulatory filing on Monday that LIC increased its shareholding in the firm to 5.003% by purchasing 1.2 lakh shares on the open market.

The ownership climbed from 4.991% to 5.003%, an increase of 0.012% at an average price of Rs2,673.84 per unit, according to LIC in a separate filing. On December 2, 2022, the insurance made the acquisition, it continued. Additional shares were purchased by LIC for a total of around Rs57.2 crore.

On the BSE, shares of HDFC finished at Rs2,674.95, up 0.35%. Prior to the acquisition, LIC owned more than 9.09 crore shares or 4.991% of the company.

HDFC Ltd made the decision to combine with its banking affiliate HDFC Bank earlier in April. The largest corporate merger in Indian history, the $40 billion deal between HDFC Bank and the largest domestic mortgage lender on April 4 will create a financial services behemoth.

The aggregate asset base of the proposed business will be close to Rs18 lakh crore. Depending on regulatory permissions, the merger is anticipated to be finished by the second or third quarter of FY24.

Once the agreement is in place, existing HDFC shareholders will own 41% of the bank, making public shareholders the sole owners of HDFC Bank.

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