LIC has hiked its stake in Infosys ltd to a record high level of 6.3% with purchase of shares worth an estimated Rs. 2,000 crore in the first quarter (April to June) of the current fiscal - 2012- 2013.
LIC of India (Life Insurance Corporation of India), one of the biggest investors in the Indian share market, saw its holding in the IT major Infosys rise from 4.9% to 6.3% during the quarter ended June 30, 2012
Based on the average market price during the period, the increase in LIC’s Infosys ltd holding could be worth above Rs 2,000 crore.
LIC is the largest non-promoter shareholder of Infosys ltd. LIC hiked its stake in Infosys even as a number of foreign investors pared their holding in the IT company — which has been known as the bellwether share in the Indian IT space till recently. But is now facing growing concerns about its future growth prospects.
Disappointed June Quarter Result..!
Infosys shares fell sharply on recently after the company disappointed with its June quarter results & the weakness was seen continuing in the share.
The overall FII (Foreign Institutinal Investor) holding in Infosys fell from 39% to about 38% during the June quarter, although major investors such as Aberdeen, Oppenheimer, Franklin Templeton, Vanguard and Singapore Government’s investment arm raised their stake marginally in the Imnfosys ltd.
Among the big overseas investors, only Abu Dhabi Investment Authority pared its stake, that too very marginally from 2.12% to 2.08%. However, all the FIIs together are estimated to have sold shares worth nearly Rs. 1,500 crore during the June quarter.
Concerns are being raised about Infosys’ growth prospects for 2 quarters now. But LIC of India appears to be keeping its faith in Infosys..
Barring the last quarter of the previous fiscal ended March 31, LIC of India has been mostly raising its stake in Infosys for many quarters now.
LIC had made its first investment in Infosys way back in 2002, when its holding was about 2%. Since then, LIC’s stake has been continuously rising in Infosys and had crossed 5% mark last year (2011) and then rose last 6% level during the last June quarter.
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