LIC hikes stake in select blue chips beyond 10%
MUMBAI: Domestic insurance giant Life Insurance Corporation (LIC) has raised its stake beyond 10% in a few blue chip companies even after the insura nce regIRDA decided to impose a cap of 10% on the institution's investment in a single company. While IRDA last week said it would give reasonable time to LIC to adhere to the investment restrictions, that, however, seems to have encouraged the latter to make quick acquisitions in select stocks where it holds less than 10% equity. The strategy, according to market sources, could be to take advantage of the beaten-down valuations to make some capital gains subsequently when market conditions improve, before bringing the stakes below the prescribed limit. LIC has made fresh investments in companies like Siemens, PTC India, Tata Power and Cipla in which it now holds more than 10% stake each. Based on Wednesday's closing, the combined value of the institution's additional investments in these companies amo