LIC increases stake in Dr Reddy's

LIC has raised its stake in pharma major Dr Reddy's Laboratories to over 5 per cent by way of open market stock purchases during September 2021 to June this year, at an estimated cost of Rs 1,556 crore.

Corporation's shareholding in Dr Reddy's Laboratories has increased from 60,64,345 to 93,96,801 equity shares, or from 3.644 per cent to 5.646 per cent of the paid-up capital of the said company, LIC said in a regulatory filing on Thursday.

The life insurer said it bought shares through open market purchase from September 3, 2021 to June 15, 2022 at an average cost of Rs 4,670.46.

This translates into an investment of Rs 1,556.41 crore to buy over 33.3 lakh shares of the pharma company.

Dr Reddy's is engaged in manufacturing of Active Pharamceutical Ingredients (APIs), Custom Pharmaceutical Services (CPS), generics, biosimilars and differentiated formulations.

Shares of LIC closed 3.08 per cent lower at Rs 669.20 apiece on BSE. Dr Reddy's scrip ended 1.15 per cent down at Rs 4,287 apiece.