LIC to remain invested; may raise stake

Life Insurance Corporation (LIC), the country’s largest insurer, today said it would like to stay invested in Mahindra Satyam. The public sector insurer also said it would wait for a good acquisition opportunity to increase its stake in the information technology (IT) company. LIC Managing Director D K Mehrotra, who was in the city to inaugurate LIC’s sales training centre for the Chennai Metro area, said: “We want to stay with the company (Mahindra Satyam) and, if a good opportunity comes, we will also consider investing more to increase our stake. We will do our best to support the company to turn around.”

The public sector life insurer’s present shareholding in Satyam could not be ascertained. However, according to the Bombay Stock Exchange’s (BSE’s) data, 24 insurance companies together hold a 2.92 per cent stake. LIC’s stake would be less than 1 per cent, as the BSE names those who have a stake of over 1 per cent in a company. In early 2009, the corporation had a 4.34 per cent stake in Satyam.

The insurance major’s intention to increase shareholding in Mahindra Satyam comes at a time when other major stakeholders, including Larsen and Toubro, have started selling their stake. Recently, the engineering major sold a 2.32 per cent stake. The sale was for a consideration of Rs 306.54 crore, at a share price of Rs 112.52. The remaining stake held by L&T in the company is worth over Rs 600 crore at present.