LIC bought 37.71 crore shares of ONGC; stake goes up to 9.48 pc

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ONGC on Monday said LIC picked up 37.71 crore shares in the company during the auction last week and its total holding has gone up to 9.48 per cent.

Taking into account the average price of Rs 303.67 a share, the country's largest insurer would have invested around Rs 11,450 crore during the first ever auction of PSU shares on March 1.

Life Insurance Corporation (LIC) has bought 37.71 crore shares representing 4.41 per cent stake in ONGC through open market purchase, ONGC said in a filing to the BSE.

The government auctioned 5 per cent of its stake, or 44.77 crore shares, of ONGC on March 1, fetching Rs 12,767 crore to the exchequer.

While the ONGC auction was subscribed 98.3 per cent, LIC has picked up over 84 per cent of the shares on offer. The remaining was bought by institutional and retail investors.

With the acquisition of 4.41 per cent, LIC's stake in ONGC has gone up to 9.48 per cent, the filing added. As per the Insurance regulator IRDA guidelines, an insurance firm's holding should not exceed 10 per cent in any company.

Shares of ONGC is trading at Rs 282.85, up 0.71 per cent on the BSE in the afternoon trade on Monday.