LIC ups its stake in NMDC by 2% at Rs 1,116.17 cr

Govt as promoter company owns 80% equity in NMDC

Life Insurance Corporation of India (LIC) has upped its stake by 2% in the state-owned iron ore mining company NMDC. With the purchase of additional 79.83 million shares, the LIC's share holding in the company rose to 10.124% from the previous 8.111%, according to a communication issued to the stock exchanges by NMDC on Wednesday.

The LIC has bought these shares at a total value of Rs 1,116.17 crore, according to the filing. Government of India as the promoter the company owns 80% equity in NMDC while the state-owned life insurer stands second in terms of the share holding in the company.

As on March 31, 2015, LIC together with LIC Pension Plus Mixed Fund held 9.96% equity. With the new purchase of shares the total shares held by LIC surpasses 10% leaving less than 10% shares in the hands of other investors under public category.

Insurance Regulatory and Development Authority of India (IRDAI) allows insurance companies to hold upto 15% stake in a single company while the LIC has been maintaining that it was allowed to hold up to 30% shares in a company under the LIC Act of 1959.