The Life Insurance Corporation of India (LIC) bought a majority of shares in a five per cent NTPC stake sale worth USD730 million. Although LIC ended up buying 59 per cent – or 243.15 million of the 412.27 million shares on offer – overall institutional demand, including that from foreign investors, was strong with bids worth 2-1/2 times the shares on offer. However, retail investors ended up buying only 44 per cent of the shares allotted to them.
In August, LIC salvaged a USD1.4 billion sale of shares in Indian Oil Corporation, and previously supported the sale of shares in Coal India, Steel Authority of India and state banks.
Nilesh Shetty, a fund manager at Mumbai-based Quantum Asset Management, said, “The environment is fairly weak right now. Most investors don’t want to buy into these companies. The quarterly results these companies are reporting are weak.”
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/