State-controlled insurer Life Insurance Corporation of India (LIC) bought 157 million shares in Oil and Natural Gas Corp (ONGC ) in the run-up to the mega auction last week, according to a filing by the company today.
According to the company filing, LIC owned 433.5 million shares or 5.06% before the auction. According to the company’s shareholding pattern as on December 31, 2011, the insurer had only 276.39 million shares or 3.23% stake, which means the additional 157 million shares or 1.83% were bought by the insurer in the run-up to the auction.
LIC’s stake increase coincided with the significant run-up in the ONGC stock, which gained over 7.7% in the run-up to the auction as against a 3.25% increase in the Sensex.
In the auction, the insurer picked up another 377 million shares, taking the total stake 811 million shares to 9.47%, according to the company filing.