LIC acquires less than half of offered RCF shares

LIC acquires less than half of offered RCF sharesIn another attempt to save the government's diversification programme, the State-run Life Insurance Corporation (LIC)has acquired just less than half of the Rashtriya Chemicals and Fertilisers (RCF) shares offered by the government in the previous week.

LIC wrote in a filing with the stock exchange that it acquired 3.16 crore shares out of the total 6.9 crore shares offered by the government in the market as part of the privatisation programme of RCF. LIC acquired 45.86 per cent of the total offered shares for a consideration of Rs. 142.35 crore.

With the share sale, the government has been able to reduce its holding in the company by 12.5 per cent and has raised about Rs. 310 crore. The government has set a base price at a premium of 2.5 per cent of the market prices during the previous week. Market analysts said that the sale offer was less than half sold just hours before the offer was set to close and thus LIC had to step in and rescue the sale by acquiring a large chunk of the shares on sale.

LIC had earlier rescues stake sales for ONGC and Hindustan Copper OFS (offer-on-sale).