LIC raises its holding in Dr. Reddy's Pharmaceuticals from 3.64% to 5.65%

17 Jun 2022 , 08:37 AM

On June 16, the Life Insurance Corporation of India announced that it has increased its stake in Dr. Reddy’s Laboratories Limited by 2.002% over a period of nine months. The public sector insurance now owns 5.646% of the pharmaceutical giant following the transaction.

According to an exchange filing from LIC, “…..corporation’s shareholding in “Dr. Reddys Laboratories Ltd” has increased from 60,64,345 to 93,96,801 equity shares, raising its shareholding from 3.644% to 5.646% of the paid-up of the said company.”

LIC reported that the holding increased by 2.002% between September 3, 2021, and June 15, 2022, at an average cost of Rs4,670.46 per share, while providing data about the cost of acquisition. The cost of acquisition is the price at which the shares were acquired.

The acquisition would not be a related party transaction, according to the filing, because the promoter/promoter group/group firms have no stake in the entity being acquired.

LIC informed stock markets that the increase in stakes as part of its investment activity and was done in the ordinary course of business. The acquisition does not require any government or regulatory clearances.