LIC Boosts Stake to 5% in Asian Paints Amidst Market Dynamics
The Life Insurance Corporation of India (LIC) increased its stake in Asian Paints, the renowned paint manufacturer, from 4.995 percent to 5 percent, as revealed in a filing on January 1. The state-owned insurer acquired 48,652 shares in Asian Paints, potentially amounting to around Rs 16.5 crore if valued at the current market price of Rs 3,394.55 per share.
Throughout 2023, Asian Paints experienced a performance below the benchmark Nifty 50. While the stock recorded an approximately 11 percent increase, the Nifty 50 index achieved gains of about 19.5 percent. In contrast, LIC shares demonstrated a robust 20.79 percent rise during the same period.
A December 2023 report from Elara Securities indicated a potential weakness in overall demand in Q3FY24, contrary to expectations of a post-festival and marriage season recovery. Consumer sentiments appeared subdued post-Diwali. InCred Equities maintained a ‘reduce’ rating on Asian Paints, setting a target price of Rs 3,000 per share.
Despite these market dynamics, the promoters’ holding in Asian Paints remained stable at 52.63 percent in the quarter ending September 2023. Foreign Institutional Investors (FIIs) held 17.7 percent, Domestic Institutional Investors (DIIs) maintained a 10.1 percent stake, and the public retained holdings of approximately 19.6 percent.