LIC Increases Stake in Dr. Reddy’s Laboratories to 5.01%

On June 13, 2024, Life Insurance Corporation of India (LIC) disclosed through a stock exchange filing that it had increased its stake in Dr. Reddy’s Laboratories Limited, a prominent player in the Indian pharmaceutical industry. LIC’s shareholding in Dr. Reddy’s rose from 4.95% to 5.01% of the paid-up capital, amounting to an increase from 82,61,579 to 83,69,879 equity shares.

Dr. Reddy’s Laboratories is renowned for its diverse offerings in the pharmaceutical sector, including Active Pharmaceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars, and differentiated formulations. The company has established itself globally with a robust portfolio and a focus on innovation in healthcare solutions.

LIC clarified that the acquisition of these additional equity shares was part of its investment strategy, which was conducted through open market purchases in the ordinary course of business. This move underscores LIC’s confidence in Dr. Reddy’s Laboratories and its growth prospects within the pharmaceutical market.

The acquisition took place on June 12, 2024, marking a significant milestone as LIC’s holding in Dr. Reddy’s Laboratories crossed the 5% threshold.

Earlier in May 2024, Life Insurance Corporation of India increased its shareholding in P I Industries Limited from 75,19,910 to 75,91,910 Equity Shares, i.e., 4.95% to 5.00% of the paid-up capital of P I Industries Limited.

PI Industries Ltd is a leading player in the agrochemicals space, with a robust presence in both domestic and international markets. It has state-of-the-art facilities in Gujarat, integrated process development teams, and in-house engineering capabilities.

About Life Insurance Corporation of India 

Life Insurance Corporation (LIC) is India’s largest insurance provider. It has a market share of above 66.2% in new business premium. LIC provides a range of insurance solutions, including participating and non-participating products such as unit-linked insurance, savings plans, term insurance, health insurance, annuities, and pension products.

On June 14, 2024, the share price of Life Insurance Corporation of India opened at ₹1,005.80, touching the day’s high at ₹1,012.75, as of 9:42 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.