LIC Increases Stake In Dr Reddy's To 8.216%

Life Insurance Corporation of India (LIC) has increased its equity stake in Dr. Reddy’s Laboratories Ltd to 8.216%, following a series of open market purchases carried out between October 28, 2024, and June 3, 2025.

According to a regulatory filing dated June 4, LIC acquired 1,67,89,472 equity shares, accounting for 2.012% of the pharmaceutical major’s total paid-up capital. This takes its holding from 6.204% to 8.216% in the Hyderabad-based company.

Shareholding Details and Regulatory Context

The acquisition was executed through purchases on both the NSE and BSE, where Dr. Reddy’s shares are listed. The total equity share capital considered for the calculation was 83,44,55,365 shares.

The disclosure was made pursuant to Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Under this rule, any investor that owns 5% or more of a company’s share capital must disclose acquisitions of 2% or more.

LIC confirmed that it is not part of the promoter group, and there were no voting rights acquired through instruments other than equity shares—no warrants or convertible securities were involved.

What’s the Strategy Behind This?

The extended duration and nature of the acquisition suggest a strategic accumulation rather than a short-term trade. Moves by large institutional investors like LIC are often interpreted as confidence in a company’s fundamentals and long-term growth potential.

The disclosure, signed by LIC’s Assistant Secretary (Investment-Back Office) from its Mumbai headquarters, was sent to both stock exchanges as well as Dr. Reddy’s Laboratories Ltd.

Stock Performance:

LIC Shares have gained 1.87% in the last year, 6.98% in the year-to-date, and 17.32% in the previous month. Dr. Reddy’s Labs’ share price has gained 11.03% over the last year, with a 5.53% decline in the year-to-date period and a 10.42% gain in the previous month.

A Glimpse of the Key Players

About Dr. Reddy’s Laboratories: Dr. Reddy’s Laboratories is a global pharmaceutical company headquartered in Hyderabad, offering APIs, generics, biosimilars, and differentiated formulations. It is listed on both the NSE and BSE.

About LIC: LIC is a statutory body founded under the Life Insurance Corporation Act, 1956, and is a major institutional investor in Indian markets with a diversified portfolio.

This development could potentially enhance market perception of Dr. Reddy’s and may aid its future capital-raising plans by showcasing increased backing from a long-term, stable investor.

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