LIC divests 2% stake in Sun Pharma
Life Insurance Corporation of India (LIC) has divested a 2.011% stake in Sun Pharmaceutical Industries Ltd., reducing its holding from 5.023% to 3.012%.
The transaction was done through the open market between July 22 and September 13 at an average floor price of Rs 973.80 per share.
Sun Pharmaceutical Industries Ltd had reported a net profit of Rs 2,022.54 crore for the quarter ended June 2023, down 1.86% from Rs 2,060.88 crore in the same period last year.
LIC’s stake sale comes at a time when the company is facing some challenges. In July, the US Food and Drug Administration (FDA) issued a warning letter to one of Sun Pharma’s manufacturing facilities in Halol, Gujarat. The FDA said that the facility had failed to comply with certain good manufacturing practices.
LIC’s stake sale in Sun Pharma is also part of a broader trend of insurance companies reducing their exposure to the pharmaceutical sector. In recent years, insurance companies have been selling off their stakes in pharmaceutical companies as they look to invest in other sectors, such as technology and infrastructure.
The disclaimer at the end of the article is important to note. It reminds readers that the views and investment tips expressed by experts are their own and should not be taken as investment advice.
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