LIC Raises Stake in LTIMindtree to 7.034%

Life Insurance Corporation of India (LIC), India’s largest institutional investor, has increased its shareholding in LTIMindtree, a well-known IT services company. According to an exchange filing, LIC raised its stake from 5.033% to 7.034% of the company’s paid-up capital through open market purchases.

Acquisition Details

Between March 20, 2024, and November 19, 2024, LIC acquired 59,27,344 equity shares of LTIMindtree, raising its total holdings from 1,49,06,665 shares to 2,08,34,009 shares. The acquisition was made at an average price of Rs.4,950.81 per share, bringing the transaction’s value to approximately Rs.2,934.51 crore.

LTIMindtree’s Q2FY25 Financials

LTIMindtree reported good Q2FY25 results with a consolidated net profit of Rs.1,251 crore, a 7.7% increase year-on-year. Sequentially, the profit grew by 10.33%. Revenue from operations also rose by 6% year-on-year to Rs.9,432.9 crore. The company declared an interim dividend of Rs.20 per share.

Stock Performance & Valuation

Following the announcement, LTIMindtree’s stock witnessed an uptick, gaining nearly 2.11%. The shares were last seen trading at Rs.6,056.00, showing the broader market sentiment around LIC’s strategy.

LTIMindtree shares hit a 52-week high of Rs.6,574.95 in September 2024 and a low of Rs.4,513.55 in June 2024. Despite a broader market correction, the stock has risen 1.45% in the last month and 9.05% over the past year, although it is down 3.5% year-to-date.

LIC shares are trading at Rs.882.95 today, showing a 0.11% increase, with gains of 2.82% year-to-date and a huge 45.04% surge over the past year.

Conclusion: LIC’s decision to increase its stake in LTIMindtree shows confidence in the IT firm’s performance and potential. With LIC’s strategic investments and LTIMindtree’s growth, the development adds a good chapter to both companies’ evolving market narratives.

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.