Mumbai, April 14: The Life Insurance Corporation of India (LIC) has pared its stake in Infosys to 3.25 per cent in the January-March quarter, with the share sale estimated at over Rs 850 crore.
The state-run institution had held 3.71 per cent in Infosys during the third quarter of 2013-14.
The LIC has been reducing its stake in the country’s second largest exporter of IT services since the June quarter of 2012. It had held a 6.72 per cent stake at the end of June 30, 2012.
Taking into account the current market value of Infosys shares, the 0.4 per cent stake divested by the LIC would be worth about Rs 852 crore. The Infosys scrip closed at Rs 3,235.80 on the BSE on Friday.
Foreign institutional investors (FIIs) have, however, ramped up their holdings in Infosys to 42.10 per cent in the January-March quarter from 40.65 per cent in the preceding three months.
This comes on the back of the company reporting better-than-expected numbers for the past couple of quarters. Besides, the market is optimistic about Infosys improving its performance in the coming months.
Domestic institutional investors such as the LIC have reduced their exposure in the company to 13.66 per cent in January-March from 15.35 per cent in the preceding quarter.
Infosys, which is scheduled to report its fourth-quarter earnings tomorrow, is largely expected to report tepid growth in revenues.
The markets are focussed more on its dollar revenue guidance for the current fiscal. The Street expects the company to declare a 6-8 per cent revenue growth. Brokers aver that any guidance below 6 per cent will be taken negatively by the markets.
Infosys chief executive officer and managing director S.D. Shibulal had last month said he expected sluggish growth in the January-March quarter because of muted spending by clients, particularly in the retail sector. He had said muted growth in the fourth quarter of 2013-14 might spill over to the next fiscal as well.
Infosys co-founder N.R. Narayana Murthy was brought back to head the IT major in June last year, following several quarters of lacklustre performance.