State-run Life Insurance Corp has increased its stake in BHEL to nearly 15 per cent after it purchased 4.6 per cent shareholding in the power equipment maker as part of government's disinvestment programme.
Life Insurance Corporation of India (LIC), on Monday, acquired about 4.66 per cent stake, or about 11.41 crore shares, in Bharat Heavy Electricals Ltd at a price of Rs 165.55 apiece.
The deal followed Finance Minister P Chidambaram-headed Empowered Group of Ministers deciding last week that the insurer would acquire stake in the power gear maker. These shares were sold by the government, which had 67.72 per cent stake at the end of December last year.
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BHEL's parent ministry, Heavy Industry and Public Enterprises Ministry, was opposed to proposed disinvestment in the company on account of choppy market conditions.
According to a regulatory filing today, the insurer has hiked its stake through "open market and bulk deal" in BHEL during the period from May 4, 2011 to March 3, 2014.
During this period, LIC snapped 5.942 per cent stake in the power equipment maker.
Prior to these transactions, it had 9.052 per cent shareholding in BHEL and the same has now gone up to 14.994 per cent, the filing said.
At the end of December quarter, LIC held just 6.03 per cent stake in BHEL.
In late afternoon trade, shares of BHEL was trading flat at Rs 166.70 on the BSE.
