LIC buys 5.94% stake in BHEL

State-owned Life Insurance Corporation has bought government's 5.94 per cent stake in power equipment maker BHEL for Rs 2,685 crore.
After this share purchase, LIC's stake in BHEL is 14.99 per cent, up from 9.05 per cent.
LIC purchased 14.54 crore shares, amounting to 5.94 per cent stake, in BHEL during March 3-4 through open market route for Rs 2,685 crore (Rs 184 apiece), BHEL informed stock exchanges.
BHEL scrip closed at Rs 173.55, up 3.92 per cent, on the NSE.
The government held 67.72 per cent stake in BHEL at the end of December, 2013.
An Empowered Group of Ministers, headed by Finance Minister P Chidambaram, had decided last week that the insurer would acquire stake in the power gear maker.

In August 2011, the Cabinet had cleared sale of 5 per cent stake in BHEL through a follow-on public offer (FPO).
However, the Heavy Industry and Public Enterprises Ministry was opposed to proposed disinvestment because of choppy market conditions. The company in April 2012 withdrew the draft prospectus filed with market regulator SEBI.
The government has so far raised about Rs 5,093.87 crore through stake sale in PSUs. As per the revised estimates in the Interim Budget, the disinvestment target was lowered to Rs 16,027 crore in this financial year from Rs 40,000 crore.