LIC Cuts Stake In Lupin By Nearly Half To 2.54%
LIC's reduced holding in Lupin marks a significant divestment, with the pharma company reporting strong financial growth in Q2 FY25, including a 74% rise in net profit.
Life Insurance Corp. has reduced its shareholding in Lupin Ltd. by nearly half. The drugmaker intimated to stock exchanges that LIC divested 2.027% equity or over 92 lakh shares.
LIC's equity stake in Lupin now stands at 2.542%, down from the previous 4.569%.
The share sale was conducted between Sept. 30 and Dec. 6, according to an exchange filing.
Domestic mutual funds account for 16.89% of Lupin's shareholding, while insurance companies have 7.2%, as of the end of September.
SBI Life Insurance Co. holds 1.04%, and HDFC Life Insurance Co. has 1.38% equity.
LIC is one of India's major institutional investors.
In the second quarter of the current financial year, Lupin reported a 13% revenue rise to Rs 5,672.7 crore as compared to Rs 5,038.6 crore in the same period a year ago. Net profit rose 74% year-on-year to Rs 852.6 crore versus Rs 489.7 crore.
The company’s US business grew 6% YoY but dipped sequentially. The pharma major posted sales of $220 million, compared to $213 million last year. Lupin had recorded sales of $227 million in Q1FY25.
Shares of Lupin Ltd. closed 1.21% lower at Rs 2,106.65 on Monday, while benchmark Nifty 50 ended 0.24% lower. The stock has risen 70% in the last 12 months.
Twenty out of the 37 analysts tracking Lupin have a 'buy' rating on the stock, 10 recommend a 'hold,' and seven suggest a 'sell,' according to Bloomberg data. The average of the 12-month analyst price target of Rs 2,254 implies a potential upside of 7%.
