Life Insurance Corporation of India (LIC) will offload 5.7% holding in Associated Cement Company (ACC) in the open offer made by global cement major Holcim."We will retain a 10% stake in ACC as we currently hold 15.7%," R N Bhardwaj, chairman of LIC, said today.Securities and Exchange Board of India (Sebi) today gave its approval to Holcim's open offer to acquire over 50% of ACC stock at Rs 370 per share.LIC intends to hold on to a significant portion of its holding in ACC as it sees value in the stock, and feels this is not the time to exit from the cement sector.Over 50% of LIC's stake in ACC, amounting to 1.62 crore shares, had been acquired from an auction of shares belonging to deceased stock broker Harshad Mehta back in 2003. As these shares were acquired at Rs 170 in the block deal, LIC wants to book profit partially even as it intends to retain two-third of its current holding.Financial institutions (FIs) collectively hold 18.63% stake in ACC. Most FIs do not find the open offer price attractive, especially since they see immense value in cement stocks today.Foreign insititutional investors (FIIs) hold a higher stake of 23.27% in the cement company, and would now play a crucial role in the success of the open offer.
